As one of the outspoken critics of the SEC rule that
exempts fee-based brokerage services from Advisers Act regulation, TD
Ameritrade Institutional has argued the rule confuses consumers.
Now, the company is launching its own education campaign to set investors straight.
The company announced it has created an "Advisor Education Kit" that
investment advisors can use to help explain to clients the differences
between broker-dealers and RIAs.
Among the key messages contained within the kit: Brokers are not held to the same fiduciary standards as RIAs when it
comes to serving clients.
Critics of the exemption rule have argue that while RIAs are required
to put their clients' interests first, brokers are held to a lower
standard that only requires them to offer products and services
"suitable" to each of their clients.
"Our recent survey showed that even with increased
disclosures by broker-dealers, investors are still confused," said Tom
Bradley, president of TD Ameritrade Institutional. "If the thousands of
RIAs in this country commit to educating investors, we can collectively
raise awareness about the fiduciary responsibility of RIAs to act in
their clients' best interest."
The kit includes print ad templates, a PowerPoint
presentation template, handouts and tips for talking to the media. It
also includes the results of a TD Ameritrade survey in May that found
that 74% of respondents did not know the different obligations of RIAs
and brokers.