TD Ameritrade Institutional reported today that it has attracted more breakaway advisers to the firm during the first nine months of its current fiscal year than it did in all of fiscal 2009.
TD Ameritrade Institutional reported today that it has attracted more breakaway advisers to the firm during the first nine months of its current fiscal year than it did in all of fiscal 2009.
Over the nine-month period ended in June, 212 such advisers joined TD Ameritrade — compared with the 202 recruits that came aboard during the 12-month period ended Sept. 30.
Also, the 212 advisers TD has recruited in the first nine months of the year is a 44% increase over the same period in 2009.
The custody firm's parent, TD Ameritrade Holding Corp., reported financial results yesterday.
Of the new advisers joining TD Ameritrade in the current fiscal year, 42% joined existing advisory firms, up from 34% last year, said Tom Nally, managing director of sales at TD Ameritrade Institutional.
"We're really seeing overall strength [in the] move to independence," Mr. Nally said, "and the tuck-in trend is really heating up."
So-called tuck-ins — advisers who join an existing firm versus setting up their own RIA — are seen as a large market for custodial firms. Many advisory firms are actively recruiting from the large population of wirehouse brokers, who don't always want to set up shop from scratch.
"We've got many [recruits] who are not so entrepreneurial joining existing firms," Mr. Nally said. TD Ameritrade provides custody for about 4,200 advisers. The firm does not disclose the assets of its custody business.
