To help explain the difference, TD Ameritrade conducted a survey after SEC Rule 202(a)(11)-1, commonly known as the Merrill Lynch or Broker/Dealer Exemption rule, was adopted in April 2005. The rule allows stockbrokers to offer services similar to that of RIAs without being held to the fiduciary standard of care and conflict of interest disclosure required of RIAs. (cont)
In fact, the study done by TD Ameritrade showed that:
- 74% of investors did not understand the different obligations required of RIAs and stockbrokers. Unlike stockbrokers, RIAs have an obligation to act in an investor’s best interest in all aspects of the financial relationship.
- 79% of investors said they would rather work with an investment advisor if they knew advisors provided greater investor protection than stockbrokers.
- If investors knew that stockbrokers were not required to act in their best interest in all areas of the financial relationship, 70% would not use them.
Why Choose Us
- Active investment management, including long/short investment strategies
- Online Wealth Management Experience.
- 100% Fee Only Advisor.
- Registered Investment Advisor (RIA).
- Unlike “wirehouse” financial advisors, we adhere to a fiduciary standard.
- We use third-party custodians to provide safety and security on your accounts.
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