TD AMERITRADE Institutional Survey Shows Practice Management is Top Focus for RIAs in 2010

With Market Rebound, Advisors Taking Opportunity to Reinvest in Their Businesses; Regulatory Uncertainty Provides Pause

JERSEY CITY, N.J.--(BUSINESS WIRE)--A survey of more than 500 registered investment advisors (RIAs) released today by TD AMERITRADE Institutional, a division of TD AMERITRADE Holding Corporation (NASDAQ: AMTD), reveals as the financial markets improve, independent advisors are taking the opportunity to re-engage with their businesses and put a new focus on marketing, investing in technology, enhancing service levels and preparing their firms for growth.

“Preparing for Growth in the New Era of Delivering Financial Advice.”

“While a majority of RIAs surveyed enjoyed business growth, a new set of challenges needs to be addressed. Firms must create capacity in their businesses to efficiently serve their existing clients, onboard new ones and ultimately enhance profitability. Additionally, they need to navigate the ever-changing regulatory environment,” said Tom Bradley, president, TD AMERITRADE Institutional. “In short, to succeed in the financial services industry of 2010 and beyond, RIAs will need to make practice management a top priority.“

The results of the quarterly RIA Sentiment Survey are available in a new TD AMERITRADE Institutional report titled: “Preparing for Growth in the New Era of Delivering Financial Advice.” This practice management focused report analyzes the current environment for RIA business operations and provides advisor views on top business goals and challenges in 2010.

Highlights from the RIA Sentiment Survey include:

Marketing and Business Development
Opportunistically, RIAs are taking advantage of investor dissatisfaction with Wall Street by making marketing (64%) the top area of increased investment, up 11% from just three months earlier. Despite lingering economic headwinds, a majority of RIAs are continuing to bring in new business (60%), most notably at the expense of traditional wirehouse brokers. RIAs surveyed report 65% of new client assets are coming from full commission brokerages.

Client Service
The market downturn has shown that RIAs are continuing their legacy of outstanding client service by increasing client contact (52%) and ranking improving client service as a critical business focus for 2010.

Compliance and Regulatory Issues
With the pending changes in the regulatory environment that may directly impact RIA compliance, independent advisors now consider this their top area of concern, with nearly half (47%) of RIAs worried about regulatory changes vs. 9% just one year ago.

Technology and Operations
Investing in technology to streamline RIA back offices and provide scale for continued growth remained another area of importance, with 61% of RIAs reporting that they have increased their investment in technology by upgrading existing systems, purchasing new technology and enhancing training.

HR and Staffing
The downturn in the markets has put pressure on RIA profitability, causing many to decrease spending on compensation, the biggest cost area for RIA firms. Nearly half (48%) reduced their spending on salaries and bonuses, however this number was down from 54% six months prior. Despite the tough environment, independent advisors report consistently high satisfaction with their career choice.

Investment Outlook
RIAs remain bullish on the markets, allocating nearly $1 of every $2 (48%) of client assets in equities, proportion that has stayed constant over the last half of 2009. Additionally, advisor optimism remains positive for 2010, however, it is tempered by concerns over unemployment rates, deficits and other potential global macro issues.

“As RIAs focus on growth, profitability and enhancing client service in the months ahead, TD AMERITRADE Institutional will be there to deliver smart operational solutions, innovative technology, customized practice management and flexible investment solutions,” concludes Bradley.

“Preparing for Growth in the New Era of Delivering Financial Advice” is available online. To download the report, visit www.maximizemyriabusiness.com.

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Survey Methodology
These results are based on a survey conducted by Maritz on behalf of TD AMERITRADE Institutional. A random sample of five hundred and seven (507) RIAs participated in a telephone survey between December 2 and December 17, 2009. RIAs who custody with TD AMERITRADE Institutional, as well as other independent RIAs from across the country were asked to share their views on the economic outlook for their firms and the advisor market in general. The margin of error in this survey is ±4.4%. This means that in 19 cases out of 20, survey results based on 507 respondents will differ by no more than 4.4 percentage points in either direction from what would have been obtained by seeking the opinions of all eligible RIAs. Maritz and TD AMERITRADE Institutional are separate, unaffiliated companies and are not responsible for each other's products and services.

About Maritz
St. Louis-based Maritz is a sales and marketing services company, which helps companies achieve their full potential through understanding, enabling and motivating employees, channel partners and customers. Maritz provides market and customer research, communications, learning solutions, incentive initiatives, rewards and recognition, effective meeting, event and incentive travel management services, and customer loyalty programs. For more information, visit www.maritz.com or contact us at 1-877-4MARITZ.

About TD AMERITRADE Institutional
TD AMERITRADE Institutional is a leading provider of comprehensive brokerage and custody services to over 4,000 fee-based, independent Registered Investment Advisors and their clients.¹ Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisors to run their practices more efficiently and effectively while optimizing time with clients. www.tdainstitutional.com

About TD AMERITRADE Holding Corporation
TD AMERITRADE Holding Corporation, through its brokerage subsidiaries,² combines innovative trading technology, easy-to-use and understand trading tools, investment services, investor education and superior client service to create a market-leading financial services experience. Now home to the award-winning thinkorswim brokerage and dynamic trading platform³ and the Investools investor education program, TD AMERITRADE provides millions of retail investors, traders and independent registered investment advisors with the tools, service and support they need to help build confidence in today’s rapidly-changing market environment. For more information and resources for journalists, please visit the TD AMERITRADE newsroom at www.amtd.com.

¹ TD AMERITRADE Institutional, Division of TD AMERITRADE, Inc., member FINRA (www.finra.org) / SIPC (www.sipc.org).
² TD AMERITRADE, Inc., member FINRA (www.finra.org) /SIPC (www.sipc.org), TD AMERITRADE Clearing, Inc., member FINRA/SIPC, and thinkorswim, Inc., member FINRA(www.finra.org)/SIPC(www.sipc.org)/NFA (www.nfa.futures.org).
³ thinkorswim was rated #1 overall online broker, “best for frequent traders,” and “best for options traders” in Barron’s ranking of online brokers, 3/16/2009. thinkorswim was evaluated versus others in eight total categories, including trade experience/execution, trading technology, usability, range of offerings, research amenities, portfolio analysis & reporting, customer service & access and costs. thinkorswim topped the list in 2009 with the highest weighted-average score.
Barron’s is a registered trademark of Dow Jones & Company ©2009.