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TD Ameritrade pulls off amazing Summit in DC that reveals rot to the core of SEC, FINRA and ERISA system

A consumer panel sobered the crowd off the bat with war stories and then Ron Rhoades, Mercer Bullard, David Tittsworth, Sheryl Garrett, Tom Nally, Marilyn Mohrman-Gillis and others pulled no punches

Author Sanders Wommack September 18, 2014 at 5:54 PM
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A congressman, an engineer, an airline pilot and a court reporter walk into a fiduciary conference...



RIA Compliance

Stephen Winks

Stephen Winks

September 21, 2014 — 6:24 PM

This was the most consequential meeting of fiduciary advocates in quite some time. Skip Schweiss, Tom Nally and TD Ameritrade are to be congratulated for their genuine interest in professional standing and for their leadership. The first step in solving a problem is understanding the problem. We now universally understand we can not rely on regulators for a solution, fiduciary advocacy has largely come across to the understanding of Congressional staffers as simply the disparagement brokers, the brokerage lobby has misinformed congressional staffers with factually incorrect information concerning the role and responsibilities of the broker and the advisor and the terrible industry cost of the loss of trust and confidence of the investing public by it acting counter to the best interest of the investing public.

There is much work to be done. The only reliable solution is a free market initiative where the advisor is responsible for their recommendations to include ongoing accountability in support of objective, non-negotiable fiduciary criteria of statute, case law a regulatory opinion letters, not possible in a brokerage format. Such large scale institutionalized support for fiduciary duty and professional standing, which makes advice safe, scalable, easy to execute and manage and restores the trust and confidence of the investing public has yet to emerge. Fiduciary advocates must refocus on bringing expert fiduciary standing within the reach of every advisors. Rather than brokers selling an advice product fiduciary advisors must be supported to manage a broad range of investment and administrative values presently not possible in a brokerage format.

The unresolved question the TDA Fiduciary Summit begs is, How do under resourced advisors develop the expert authenticated prudent processes, technology, work flow management that makes advice safe, scalable, easy to execute and manage? By fostering un unprecedented level of investment and administrative counsel at lower cost to the consumer while better compensating the advisor, the marketplace will immediately respond. This tension with a brokerage business model which affords better advice to the consumer at lower cost is transformative as it modernizes the industry and affords professional standing.

The brokerage industry is mistaken in thinking congressional staffers will be forever duped at the expense of the loss of the trust and confidence of the investing public. Since Adam Smith introduced the “ invisible hand” in 1776 the free market has always prevailed in the best interest of the consumer.

It is the right thing to do.


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Mentioned in this article:

TD Ameritrade
Asset Custodian
Top Executive: Tom Nally

Garrett Planning Network
RIA Set-up Firm
Top Executive: Sheryl Garrett

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