This is more than the total number of advisers making the move to independence in all of 2009, a 44% increase from the first three quarters of last year, the company said (see “How Many Brokers Really Went Independent in 2009?”).
Roughly half of the adviser transitions are that of brokers who want to join an established registered investment adviser (RIA) firm, up 34% from the same time last year.
“We’re adding an average of over one new breakaway broker a business day,” said Tom Bradley, president, TD AMERITRADE Institutional. “The fee-based fiduciary business model of independent registered investment advisers is becoming more attractive to brokers who are tied to legacy technology, proprietary products and sales-driven cultures. Going independent by establishing a firm or joining an existing RIA is the preferred path for advisers.”
Not only are advisers leaving, TD AMERITRADE says assets are migrating as well. According to the latest TD AMERITRADE Institutional RIA Sentiment Survey, advisers report 62% of their new assets are coming from traditional full-commission brokerage firms (see “RIAs Continue to Pull in Clients, Show Optimism for Economic Recovery”).
More information about TD AMERTRADE Institutional can be found at www.tdainstitutional.com.