As SEC Readies for Vote on Regulation BI, RIA
Advocate Skip Schweiss Heads to Capitol Hill to Meet
Policymakers
Investing for retirement has never been more critical, but some
current policies create roadblocks for investors, small businesses,
and the independent registered investment advisors (RIAs) who guide
them. As Congress considers legislation to help address the
nation’s retirement savings crisis, TD Ameritrade Institutional1
reiterates its support for proposals that help investors plan and
save for their long-term financial goals.
Skip Schweiss, Managing Director of Advisor Advocacy and
Industry Affairs for TD Ameritrade Institutional, is meeting with
members of Congress and their staffs in Washington this week and
next to raise awareness on a range of issues impacting investors
and independent RIAs. On June 5 and 6, Schweiss will join other
Financial Planning Association members and industry leaders on
Capitol Hill. On June 13, he’ll take to the Hill again as a
participant in the Investment Adviser Association’s Advocacy Day.
TD Ameritrade Institutional is a sponsor of both of these
events.
Tax reform, SEC regulation and advisor oversight, investor
protections, small business access to retirement plans, restoration
of the investor deduction for advisory fees, extension of the
pass-through deduction for RIA firms, and cybersecurity are just a
few of the items that will be discussed.
“TD Ameritrade Institutional for 15 years has proudly stood and
fought at the side of RIAs. We come to Washington to help make
their voices heard on policies and rules that can impact their
clients and their firms,” said Schweiss. “Investing for their
retirement, for one, is critical for American families and for our
country as a whole. We should make it easier, not more difficult,
for investors to pursue their financial goals.”
The U.S. Government Accountability Office recently reported that
roughly half (48%) of households headed by someone 55 years of age
or older have no retirement savings.2 And earlier this year, the
National Institute on Retirement Security found that the typical
retirement account balance is $40,000.3
Schweiss goes to Washington just as Congress takes up two bills
related to retirement savings: the Retirement Enhancement and
Savings Act of 2019 (RESA), in the Senate, and the Setting Every
Community Up for Retirement Enhancement (SECURE) Act of 2019, which
passed in the House of Representatives on May 23. Both bills would,
among other things, raise the required minimum distribution age
from 70½ to 72, enable small businesses to work together to form
multi-employer 401(k) plans and make part-time workers eligible for
retirement benefits.
Reg BI Up for SEC Vote on June 5
RIAs are meeting lawmakers at a historic moment.
On June 5, the SEC Commissioners are set to vote on one of the
most significant proposed regulatory changes in decades: Regulation
Best Interest (Reg BI) 4, proposed in April 2018, which would
establish new standards for brokers making investment
recommendations as part of a package of new rules to be applied to
brokers and investment advisors.
Also on June 5, the SEC Commissioners will vote on whether to
publish an interpretation of the “solely Incidental” language found
in the Investment Advisers Act of 1940. This interpretation was not
part of the April 2018 proposals.
Advisors have mixed views of the proposed regulation. A recent
survey of independent RIAs5 conducted for TD Ameritrade
Institutional found that though half (51%) say they do not have
strong opinions on the SEC’s Reg BI as proposed, 35 percent say
they are in favor of it, while 14 percent are opposed. But if Reg
BI as proposed were enacted, roughly half (48%) of RIAs expect
business will continue as usual.
RIAs accept some aspects of the SEC’s proposed Reg BI but are
lukewarm on others. More than seven in 10 agree with introducing
licensing and continuing education requirements for RIAs, and 85
percent believe RIA clients should receive periodic statements
showing fees. On the other hand, 45 percent disagree with imposing
minimum capital requirements on RIA firms, and 69 percent oppose
RIA fidelity bonding requirements.
“Regulations can impact the ability of thousands of independent
advisors to compete in the marketplace, yet most RIA firms are
small businesses that need to focus on serving their clients,” said
Schweiss. “We come to Washington to amplify their voices and look
out for their interests. We also continue to tell policymakers that
investors are better served by rules that offer strong protections
in the financial markets and increase access to independent
investment advice.”
The survey conducted for TD Ameritrade Institutional also found
that independent RIAs consider regulatory issues to be their top
management challenge. Advisors also say that, second only to
technology, their biggest spending increases year after year are on
managing regulatory and legal issues.
To learn more about TD Ameritrade Institutional’s RIA advocacy
efforts, please visit
https://www.tdainstitutional.com/why-ria/advocacy.html
About TD Ameritrade Holding Corporation
TD Ameritrade provides investing
services and education to more than 11 million
client accounts totaling approximately $1.3 trillion in assets,
and custodial services to more than 7,000 registered
investment advisors. We are a leader in U.S. retail trading,
executing an average of approximately 850,000 trades per day for
our clients, more than a quarter of which come from mobile devices.
We have a proud history of innovation, dating back to our
start in 1975, and today our team of 10,000-strong is committed to
carrying it forward. Together, we are leveraging the latest in
cutting edge technologies and one-on-one client care to transform
lives, and investing, for the better. Learn more by visiting TD
Ameritrade’s newsroom at www.amtd.com, or read our
stories at Fresh Accounts.
About TD Ameritrade Institutional
TD Ameritrade Institutional empowers more than 7,000 independent
registered investment advisors to transform the lives of their
clients. It provides powerful technology and resources that help
simplify running a business and let advisors spend more time doing
what matters most — serving their clients. Through meaningful
innovation, steadfast advocacy and unwavering service, TD
Ameritrade Institutional supports RIAs as they build businesses
that positively impact their clients and communities. TD Ameritrade
Institutional is a division of TD Ameritrade, Inc., member
FINRA/SIPC, a brokerage subsidiary of TD Ameritrade Holding
Corp.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org) / SIPC (www.SIPC.org).
1 TD Ameritrade Institutional is a division of TD Ameritrade,
Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation2
Retirement Security: Most Households Approaching Retirement Have
Low Savings, U.S. Government Accountability Office, March 26, 20193
Retirement Insecurity 2019, National Institute on Retirement
Security, March 20194 SEC Open Meeting Agenda, Wednesday, June 5,
2019, Securities and Exchange Commission5 2019 RIA Sentiment
Survey, TD Ameritrade Institutional, January 2019
Source: TD Ameritrade Holding Corporation
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version on businesswire.com: https://www.businesswire.com/news/home/20190603005095/en/
Media Contact:Joseph A.
GiannoneCommunications + Public AffairsT:
201-369-8705joseph.giannone@tdameritrade.com
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