3 Ways Financial Services Firms Can Leverage Public Affairs

Often viewed with suspicion—or even hostility—in D.C., the financial services and investment industries have a chance to substantially improve understanding of their businesses in Washington and go on offense in pursuit of policy change.

This is a period of shifting risks and opportunities, with Executive Orders, a new Congress, personnel changes across financial regulatory agencies, and a changing media/influence ecosystem.

Digital assets, banking, asset management, private equity, and fintech could all see significant policy changes over the next few years as part of deregulation, tax reform, and more. In the private markets, many are focused on what will happen to tax treatment of carried interest, as well as the potential to expand access to alternative investments through retail channels.

Acting SEC Chairman Mark Uyeda has identified capital formation as a top priority for the agency, trying to making it easier for companies to raise money across public and private markets. SEC staff are reviewing a host of new regulations that will seek to encourage more IPOs, ease disclosure mandates for smaller firms, and promote more liquid alternative investment vehicles, among other things.

Such changes could have a revolutionary impact on the financial sector. As with any major change, opportunities and risks abound. Firms should be closely monitoring—and in some cases, directly engaging—in the policy conversation. Many are, but even the most sophisticated advocacy organizations sometimes underestimate the role that strategic communications can play in supporting the success of government relations activities.

Here are three ways financial services firms can leverage public affairs engagement:

#1 Stakeholder mapping and policy monitoring to stay ahead of the issues

Successful public affairs programs have this in common: regular policy monitoring and issue landscape analysis. Understanding the political ecosystem and key policy changes—before they go into effect—is key to navigating the ever-evolving political landscape and staying front-footed on policies that could affect your business. You need to know your allies and understand who influences key decision makers. Prosek offers a suite of digital monitoring tools and analytics, combining artificial intelligence and human expert analysis to help companies track developments and, ultimately, better understand the environment they’re operating in.

#2 Building goodwill with policymakers to earn a seat at the table for important policy debates

Having a presence in Washington and advocating for practices that help improve the lives of everyday Americans can build visibility and credibility with policymakers and regulators. The presence of a trusted voice in Washington—whether it comes from industry trade associations, lobbyists, coalitions, or surround sound public affairs campaigns—can open the door for financial services companies to challenge negative perceptions, build goodwill with policymakers, and earn a seat at the table for important policy deliberations that affect their business. It can even help inoculate against potential legislative and regulatory threats. A trusted public affairs partner can advise companies on which approach, or combination, is most appropriate, and develop an integrated public affairs strategy and supporting communications materials for engaging in Washington.

#3 Taking a proactive stance on advocacy to create visibility and media opportunities in Washington

Having clear policy positions, advocating for practices that ultimately benefit Americans and the economy, and articulating them clearly in the public sphere can generate earned media coverage and executive thought leadership opportunities. It’s also a major differentiator from competitors. Leaders like Vanguard and BlackRock are doing just that. Here’s an example from Vanguard, with the launch of its public policy platform; and BlackRock, which co-hosted a retirement event with Axios and members of Congress in D.C. last year. We’re seeing more and more companies play an active role in helping policymakers better understand and improve financial markets and investor outcomes by making their voice heard in Washington.

Prosek’s D.C. public affairs team combines robust understanding of public and private markets with deep Beltway communications expertise. We provide issue landscaping, stakeholder mapping, public affairs strategy, surround sound Beltway campaigns, and other tools to help clients better understand the environment they’re operating in and engage with key stakeholders, where appropriate.

To learn more about how to make your organization’s voice heard inside the Beltway, visit our website or contact us at pro-publicaffairs@prosek.com.