TD to advisers: Just say no to SRO

TD Ameritrade Institutional president Tom Bradley: 'Solid argument'

TD Ameritrade is urging RIAs to tell Congress to stick with SEC oversight of industry -- and is even advisers a sample letter to make it easier for them to weigh in.

TD Ameritrade Institutional is urging its registered investment adviser firms to lobby Congress in an effort to keep the Securities and Exchange Commission the primary regulator for advisers.
The firm late yesterday posted a sample letter on its adviser site for its advisers to use in urging their congressional representatives to preserve the SEC’s role, rather than appoint a self-regulatory organization to oversee advisers.
The letter stated: “I could support the assessment of a reasonably priced user fee in order to provide additional funding to the SEC for this purpose, and ask that you consider and support this alternative.”
The form letter is part of an advocacy campaign that TD Ameritrade is promoting at its national conference for advisers this week in San Diego.
Assessing user fees to pay for SEC adviser oversight was one of the recommendations made in a recent SEC report on adviser regulation. Authorizing a self-regulatory organization for advisers was another option highlighted by SEC staff.
“We think we have a solid argument” for SEC oversight, TD Ameritrade Institutional president Tom Bradley said in remarks to advisers today.
“But I think Finra will have a role, especially with hybrid advisers,” he said. “We need to make sure that we [don’t] get more regulation, but better regulation.”
The ultimate form of adviser oversight is in flux, Mr. Bradley said.
“Hopefully, we can make a difference,” he said.