According to a recent advisor sentiment survey released by TD Ameritrade Institutional, the top reason investors choose to work with an independent registered investment advisor is that RIAs are required, as fiduciaries, to offer advice that is in the best interest of clients (29 percent).
More personalized service and competitive fee structure offered at an RIA firm (21 percent) and dissatisfaction with full commission broker (19 percent) were other top reasons advisors say investors chose an RIA.
“The survey results support what we believe is a long term trend of investors gravitating to the fiduciary model. Over the past few years, we’ve seen RIAs benefit from money in motion due to disruption at traditional full-commission firms. And as the dust has settled, investors can see more clearly the potential benefits of hiring an RIA,” said Tom Bradley, president, TD Ameritrade Institutional.
“Investors may increasingly seek the confidence that can come from working with independent RIAs who sit on the same side of the table and are required by law to put their clients’ interests first.”