The FPA convention hits its stride on Monday

The Financial Planning Association’s annual convention is hitting high notes in a down economy, according to executives and consultants who are attending it in Anaheim.

“From my perspective, this is a huge show,” says Brian Stimpfl, managing director of advisor advocacy and industry affairs for TD Ameritrade. “It appears to be bustling with 2,500 people. The morale is absolutely hopeful and positive.”

There are three factors giving this year’s FPA gathering its buoyancy, he adds.

“What I’m impressed by is the level of talent that they’ve brought to bear including: Harold Evensky, Tim Kochis and Lou Stanosolovich,” Stimpfl says. “They’re here and they’re talking about how they’re managing through the crisis.”

Acknowledging his own bias as a fellow TD Ameritrade executive, he noted that Tom Bradley’s keynote speech at 2 p.m. on Monday was well-received. The talk focused on the fact that economies and markets do recover after downturns like the one we’re experiencing.

Brian Stimpfl: “What I’m impressed by
is the level of talent that
they’ve brought to bear"

The head of TD Ameritrade Institutional is also quietly winning the loyalty of advisors by pitching in with such speeches and adding to a major TD show of force at various association conferences, says Tim Welsh, president of Nexus Strategy LLC of Larkspur, Calif.

“The other custodians could learn a thing or two from TD Ameritrade on this front,” says and former director of marketing for Schwab Institutional. “TD recognizes that not only are there excellent branding opportunities for recruiting new advisors, but also to directly touch their existing clients.

“As you know, most advisors use multiple custodians, and the decision to place custody is made at the point of sale. Thus, investing visibly in their advisor clients’ industry associations goes a long way for advisor loyalty, ensuring they continue to receive the lion’s share of new assets from their clients.”

Bradley also gave the keynote speech at the June NAPFA national conference in Washington and he brings along his top lieutenants like Stimpfl and Tom Nally to these events.

Sense of conviction

Another factor are the attending advisors from around the country. Not only are they showing optimism and good morale but a sense of conviction about getting on board with major regulatory change in the industry, Stimpfl says.

“They get it and they realize this is a tipping point – that it’s the first time in 70 years” that the advisory industry will experience revolutionary change in its laws, he adds. “That’s where most of the question and answer sessions focused.”

The other factor is the FPA itself, which seems to be finding its voice among all the noise caused by regulatory and economic turmoil. Leaders like its chief Marv Tuttle were “highly visible” at the conference and they seem to have a sense of mission, observers say.

For instance, the FPA’s leadership in forming a coalition that includes the CFP Board and the National Association of Personal Financial Advisors.

“It got off to what was perceived as a slow start,” Stimpfl says. “But this [regulatory environment] is not something that you want to be knee-jerk about. The FPA has a done a great job. It speaks volumes that they joined hands with NAPFA and the CFP Board and brought a cohesive message.”

The FPA has also grabbed the practice management bull by the horns. Instead of merely co-sponsoring studies, it will soon release seven studies containing proprietary research in conjunction with Actifi, he adds. The first study will cover customer relationship management software.