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July 21, 2011 at 09:19 AM
TD Ameritrade said Thursday that its institutional division added 260 breakaway brokers in the first three quarters of its fiscal year, up close to 20% from the same period a year ago. According to the company, the advisors joining TD Ameritrade’s platform came from both national/wirehouse firms and independent broker-dealers.
“The fee-based fiduciary business model of independent RIAs is attractive to brokers who want to be proactive and don’t want to sit back and wait to see how a rewrite of the fiduciary rule and other pending regulatory changes might impact their livelihoods,” said Tom Nally, managing director of sales, TD Ameritrade Institutional, in a press release.
“Because RIAs already operate as fiduciaries, brokers at traditional full-commission firms foresee fewer regulatory challenges and fewer conflicts of interest in the independent model, which can be good for business and good for clients,” Nally explained.
According to the latest TD Ameritrade Institutional RIA Sentiment Survey, advisors say most of their new assets (56%) are coming from traditional full-commission brokerage firms.
“Advisors … want the freedom to do what’s right for their clients, choice and flexibility in investment options and the potential financial benefits associated with becoming an independent advisor,” said Nally. “Going independent by establishing a firm or joining an existing RIA is a preferred path for advisors, especially as more investors turn to the independence and objectivity of the RIA model for help managing their wealth.”
