Bradley keen on post B-D rule era
The end of the broker-dealer exemption rule will create a great opportunity for registered investment advisers to build out their firms, said J. Thomas Bradley, president of TD Ameritrade Institutional, speaking in Chicago today.
The end of the broker-dealer exemption rule will create a great opportunity for registered investment advisers to build out their firms, said J. Thomas Bradley, president of TD Ameritrade Institutional, speaking in Chicago today.
The 2005 rule, which exempted brokerage firms that charge asset-based fees from investment advisory regulations under specified conditions, was overturned by the U.S. Court of Appeals for the District of Columbia Circuit in Washington, after it was challenged by the Denver-based Financial Planning Association.
It is uncertain whether the Securities and Exchange Commission will appeal the court decision.
“If the broker-dealer rule is ultimately shot down, these guys will have to wear two hats,” he said, noting that brokers will be focusing on giving advice and bringing in strong returns at the same time.
The broker conflict issue can easily be resolved, said Mr. Bradley, by not letting investors work with advisers who act as both salesman and advice giver.
TD Ameritrade Institutional is based in Jersey City, N.J.
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