The Clarity for Compensation Act has already achieved an important milestone in the House, and now we need your help to build momentum in the Senate. The House Financial Services Committee recently advanced this bipartisan legislation by a unanimous 51-0 vote, demonstrating broad support for a common-sense solution that benefits financial professionals and the clients they serve. Today, we are asking you to contact your Senators and urge them to sponsor and support the Clarity for Compensation Act.

This legislation provides a targeted clarification to federal securities law that recognizes how many financial professionals operate their businesses today. Specifically, it clarifies that personal business entities owned by registered representatives, such as LLCs and corporations used for compensation, benefits, and administrative purposes, should not be treated as broker-dealers when they are not engaged in securities transactions.

Current law can create unnecessary regulatory complications for financial professionals who use standard business structures to manage their practices. While advisory fees may be paid directly to a business entity, commission compensation often must be paid to the individual representative, creating an inconsistency that serves no meaningful policy purpose. The Clarity for Compensation Act modernizes the law to reflect today's business realities while maintaining existing investor protections and oversight.

For NAIFA members, this means:

• Greater certainty in how you structure and operate your business.
• Reduced risk of unintended or duplicative regulatory requirements.
• More flexibility and efficiency in managing your practice.
• More time focused on serving clients, protecting families, and helping Americans achieve financial security.

Lawmakers need to hear directly from financial professionals whose businesses and clients would benefit from this important update. Personal stories are especially powerful. When you take action, consider sharing how regulatory clarity would help you better serve your clients and grow your business.

Please take a few moments today to send a message to your Senators and urge them to sponsor the Clarity for Compensation Act.

ACT NOW: https://naifa.quorum.us/advocate/

Thank you for your participation,

NAIFA Advocacy