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Tony Ondrusek is founder and publisher of Insurance & Financial Advisor and IFAwebnews.com.

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According to an article on the Financial Advisor magazine website, new rules proposed as part of President Obama’s proposed FY 2011 budget could force some registered representatives to be reclassified as employees.

This could have a detrimental effect on the industry, as many brokers who are independent contractors work their own books of business, set their own agendas, and operate, well, independently.

Bottom line? Reclassifying many Americans who are independent contractors in many fields could net the federal government an estimated $7 billion windfall over the next 10 years.