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TD Ameritrade Unveils Retirement Plan Solution for RIAs

Flying in the face of industry consolidation, TD Ameritrade announced Jan. 30 a bundled DC record keeping service geared for RIAs. Claiming that there are only a “few options” for RIAs, TD’s new service claims to simplify the process through a new bundled program that will include access to more 1,000 ETFs and 13,000 mutual funds.

TD is not new to the retirement business, servicing 80 record keeping TPAs. (They bought the Fiserv business over five years ago.) Those TPAs may be a little more than concerned about this competing product. Leveraging relations with 4,500 RIAs who use their brokerage services, TD stated that while only 5% of RIAs service a meaningful number of 401(k) plans, more than half are planning to pursue it — in part because of disclosure regs that they claim favor RIAs. The DOL’s redefinition of fiduciary rule may have the same positive effect.

So does TD know something that others in a contracting and deflationary market — where it has become increasing hard to make money — don’t? Focused on the RIA niche, TD will miss sales from many of the major broker dealers and many commissioned-based advisors who still dominate the small market. Though educational and enrollment tools will be made available, there was no mention of a dedicated sales force to market to advisors. So, like DFA — which recently launched a record keeping service with DST — TD enters the DC record keeping space while others have been running for the hills over the last few years.

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