Custodians defend their records in having RIA backs in battles for the fiduciary standard and against FINRA takeover
TD Ameritrade has publicly made some regulatory efforts for advisors and other say they mostly do it behind the scenes
Stephen Winks
The custody business is consciously quiet in expressing a preference for regulatory oversight because, like the brokerage business, it is not eager to provide the necessary supporting resources (process, technology, statutory documentation, work flow management, conflict of interest management, expert advisory services support) that makes advice and fiduciary standing safe, scalable and easy to execute. Both custodians and broker/dealers are fearful of fiduciary liability which can only be mitigated by proper broker/adviser resourcing. The custody is correct that in providing such resources they are being prescriptive in their support and thus incur fiduciary liability. This lack of committment to fiduciary standing is a leadership vacuum that the industry must resolve if the best interests of the consumer and the fiduciary standing of the broker/adviser is to be advanced.
The industry is shrinking from its responsibility of managing fiduciary liability and elevating the role and counsel of the adviser. Custodians are enablers as are broker/dealers. Who has the vision, the know how and courage to lead?
SCW
Related Moves
Mike Durbin set to take CEO reins at Cetera to further Genstar's bold mission, with $1 trillion looming on the horizon and his eyes on the prize
Adam Antonaides, 59, is exiting the CEO role as the No. 2 IBD shifts into higher gear to compete with LPL and take on a more RIA future
November 7, 2024 at 11:11 PM
Cetera hiring Mike Durbin as CEO -- overseeing its existing 'CEO' -- completes Genstar's stellar HR week after it put Charles Goldman atop Orion's board -- with 'exponential' growth in mind for the 'middle market' companies
The Los Angeles broker-dealer nabbed the Fidelity legend to take its $118-billion AUM and 8,000 advisors higher, just as Orion -- also majority owned by Genstar -- makes a similar move.
May 18, 2023 at 1:46 AM
Fidelity Investments loses Kathleen Murphy who largely caught up Fido to Schwab (near $4T) on the retail side by reversing net promoter scores
The 'no whining allowed' leader of the Boston giant's retail business, who oversaw $2 trillion in net new assets, was ready to exit but hung in through a year dominated by COVID-19 challenges
January 23, 2021 at 2:02 AM
Skip Schweiss exit from TD Ameritrade means the RIA custody business lost its most visible corporate-paid advocate -- for the moment
TD's now ex-managing director of advisor advocacy is set to become the FPA president, but most peers agree the 58-year-old is poised to 'write his ticket' with another custodian or national RIA
August 5, 2020 at 9:33 PM
See more related moves
MarketCounsel | HamburgerLaw
Compliance Expert, RIA Set-up Firm, Regulatory Consultant
Top Executive: Brian Hamburger
