TD Ameritrade Institutional’s
TD Ameritrade Institutional drew a record 441 breakaway
brokers to its platform for independent RIAs in the fiscal
year ending Sept. 30, a 27% increase from a year earlier.
The company said it has helped more than 1,000 advisors
become RIAs since 2010, more than any other custodian.
“There’s more support than ever before for breakaway
Small RIAs Move
brokers who want to experience the benefits of the inde-
pendent advice model,” said Tom Nally, president of TD
Ameritrade Institutional. “They no longer have to deal
with conflicts regarding what is good for the employer, as
opposed to what is good for their clients.”
Pete Dorsey, managing director of sales at TDAI, said
advisors choosing to work with the firm come largely from
wirehouses, which have been reducing payments to some
advisors. “We also are attracting advisors from regional
firms,” he said. “Recently, we’ve seen people moving from
the independent broker-deal channel as well.” Relatively
few come from insurance companies. — Matt Ackermann
and Donald Jay Korn
to State Regulation
The regulatory overhaul put in place by the Dodd-Frank Act
of 2010 has dramatically reshaped the compliance landscape for investment advisors, according to a new survey of
advisors jointly conducted by the trade group Investment
Advisers Association and the National Regulatory Service.
More small firms are moving to oversight at the state
level, the study found, while many large, private fund advisors now find themselves under the purview of the SEC.
The study identified a substantial net drop in the number of firms the SEC oversees, primarily attributed to provisions of the financial reform law. For instance, the Dodd-Frank Act upped the maximum threshold for state-level
regulation to $100 million in assets under management
from $25 million, resulting in roughly 2,400 firms that had
been overseen by the SEC registering with the relevant
At the same time, the law expanded the SEC’s authority
to include certain types of private fund advisors, a change
that resulted in more than 1,500 advisory firms registering
for the first time with the SEC, according to the study.
for Affluent Investors
Many affluent investors have recovered from the fallout of
the financial crisis in a big way, according to a new survey
from PNC Wealth Management.
More than half of the respondents (52%) report that
their net worth has grown at least 20% since 2007, and
73% believe they have “a lot of control over their financial
future,” the firm’s seventh annual Wealth and Values Survey found.
Given their changed fortunes, it’s not surprising
that the nation’s affluent investors — those with more
than $500,000 in investable assets — are feeling better
about their investment prospects and the U.S. economy,
despite continuing worries about the global economic
state of affairs.
The survey polled 1,115 adults nationwide who were
18 or older and had more than $500,000 in investable
assets and a minimum annual income of $150,000.
— Margarida Correia
FINRA Exec Lists
Now is not the time for broker-dealers to be cutting compliance budgets, a FINRA executive warned. Revised
examination procedures and new concerns about complex
products and conflicts of interest are high on the group’s
list of priorities, said FINRA executive VP Susan Axelrod.
Among the areas Axelrod highlighted were complex
products and new suitability rules. She said FINRA examiners are focusing on “principal-protected notes, non-traded REITs, reverse-convertible notes, structured notes,
and leveraged and inverse ETFs,” among other things.
She also cited recent sanctions for firms that recommended these complex products to relatively unsophisticated or risk-averse investors. — Rachel F. Elson
for Older Clients
More seniors (61%) are concerned about Medicare than
about any other financial issue, according to a recent
survey — topping even the 52% who worry about having
enough money to enjoy retirement.
Other issues of concern include: paying for long-term
care (43%), paying for health care (41%), and outliving
their money (38%), according to Allsup, a Belleville, Illi-nois-based provider of Social Security disability, Medicare
and Medicare secondary payer compliance services.
“I don’t think it’s a big surprise,” said Mary Dale Walters,
senior vice president at Allsup Medicare Advisor. “They
may see ensuring Medicare’s future as critical in making sure they have enough money to enjoy retirement.”
— Donald Jay Korn