The U.S. financial industry needs reform in the immigration rules to ensure that it can compete for talent, says an industry trade association.

The Securities Industry and Financial Markets Association is calling for changes to the visa allocation system. It explained that for the second year in a row, the cap on work visas to the U.S. is expected to be reached April 1, the first day applications are accepted for fiscal 2009.

“The current visa crunch is an impediment to our ability to recruit and retain the most qualified employees in the financial services industry. To remain globally competitive, the sector must be able to hire from the global pool of talent,” said David Strongin, managing director of SIFMA. “This will strengthen U.S. economic competitiveness, maintain the U.S. as a leading financial center, and ensure continued innovation which underpins economic growth and job creation.”

SIFMA called for policymakers to: expand the quotas that enable skilled and experienced foreign nationals to work in the U.S. for specified periods of time; extend the optional practical training period from 12 to 29 months for students, including those who wish to work in the financial services sector; and, streamline and eliminate barriers to the processing of applications that prevent short-term access to the U.S. for conferences and road shows.