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NIAP Update - June 12th, 2012

LEGISLATIVE & GRASSROOTS UPDATE

HEADLINES:

• SIPC legislation moving forward as support gains in Congress
• Grassroots efforts asked to step back and wait until legislation moves to markup
• Request for those with close relationships with Congressional members (“Grasstops”)

Dear Friend –

I realize it’s been some time since our last update, sent out shortly after the March SIPC hearings. Don’t mistake the quiet for lack of activity, however, as a significant amount of activity has been going on behind the scenes the entire time and four co-sponsors added. We have not only been waiting for something substantive to report on, but we were asked to keep things close to the vest until the appropriate time. Thanks for your patience and efforts thus far and please know that NIAP has continued to work extremely hard on everyone’s behalf.    

Legislation. I’m pleased to report that a bi-partisan support group has formed within the House Capital Markets Subcommittee and the broader Financial Services Committee , that this bi-partisan effort has agreed on the key components of HR 757, and most importantly, the prospects for a markup in the Subcommittee are very good. This is a critically important step in the legislative process, and dramatically elevates the significance of this legislation and its viability.

So, despite appearances of lack of progress, the professional lobby and grassroots efforts – with hundreds of letters sent in by you in the last initiative – have borne fruit. We have a big challenge confronting us, but the legislation IS moving forward.

Once again, the key components of this legislation would mandate the use of final account statement for SIPC advances, eliminate the clawback of innocent investors, and mandate that the SEC oversee a properly vetted slate of trustees.  

Grassroots. We’ve come to a very delicate stage in our grassroots efforts. It is now time to reign in on our letter-writing and communications!  There is a fine line between communication, education, and annoyance, and we have heard recently from the highest level that further broad pressure at this time will do more harm than good. It is time, therefore, for the victims to pull back, and allow the lobbyists, Congressman Garrett, and the other Congressional members to focus on a successful Subcommittee markup. If they are successful, and we’re optimistic they will be, we will have many opportunities to apply our energy to send effective letters and make positive calls to our Members to keep the legislative process moving forward.  More letter-writing and phone calls at this time will not be helpful, and could be damaging. In the interim, consider assembling your list of friends, co-workers, and other family members who you will try to reach out to probably later this summer and beyond.

Grassroots help needed now for Congressman Grimm and Hayworth’s districts. To strengthen our New York delegation, we need grassroots letter-writing targeted specifically to both Congresswoman Nan Hayworth, whose district is centered in the lower Hudson Valley around Newburgh, and Congressman Michael Grimm, whose district covers Staten Island, asking for their support for H.R. 757. 

Letters and phone calls (only made during regular office hours) are needed – but ONLY from constituents.  Letters from outside a Congressional member’s district are generally unhelpful at best. [Click here to contact Hayworth or Grimm]

Also, we continue to seek “Grasstops” in these districts and all other districts – individuals who have direct access to their Congressional members. If you are, or know someone in that capacity, please contact us for further directions.

Please be patient. We understand many victims are anxious to take action that might move this legislation forward. This process has been, at times, frustrating for all of us. Sometime in July, NIAP and the lobby firms will host a phone call to members to discuss the next steps in the grassroots effort. We will also assemble a list of “do’s and don’ts” guidelines for effective grassroots activism so we can make sure we’re making the most positive and effective impact.  

If you do feel compelled to send a letter now, only send a polite “thank you” from you personally if your Congressional member has supported the legislation, and leave it at that. (Letters should only be signed personally, and generally not signed as a member of an organization or entity.)

Please keep in mind the tremendous amount of time and effort contributed by our team of professional lobbyists, attorneys, public relations professionals, and NIAP staff – all working on a pro-bono or low-cost basis. Without them, we would not have gotten to this point, and we’ll be looking to you to help keep this effort alive.

So keep the faith, and let’s prepare to march on.  Click here for more information,.

Thanks so much,

Ron Stein, CFP
President

PS. Our legal and media update will be coming soon.

 

CONTACT INFORMATION:

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               Email us at:  admin@investoraction.org

               Call us at:      631-425-0770

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