T.D. Ameritrade to offer turnkey retirement plan to RIAs

In the wake of a study that found registered investment advisors saw opportunity in the retirement plan space, but were nervous about the regulations involved, T.D. Ameritrade announced it would offer a turnkey program to allay their concerns.

T.D. Ameritrade Trust Co. said it relied on input from RIAs to create the retirement plan strategy, which combines recordkeeping, custody and third-party administration. The plan would include access to non-proprietary ETFs, funds and the RIA services of T.D. Ameritrade Institutional.

A report by T.D. Ameritrade found that 80 percent of RIAs saw opportunity in the $5.6 trillion defined contribution plan market. Grabbing a slice of that pie has allure for advisors, but the potential scrutiny from government agencies is a daunting prospect. The Department of Labor requires plan providers to fully disclose their services, compensation and fiduciary status. 

T.D. Ameritrade cited industry analysts who say retirement plan sponsors would move their systems to RIAs as the disclosures make the market more competitive.

The recent survey also found that RIAs were concerned that they did not have the expertise or information they need to set up a retirement plan business.

T.D. Ameritrade said its Retirement Plan would help advisors by offering them the step-by-step instructions for setting up a defined contribution business as set forth in the firm’s Retirement Handbook.

The plan also offers account management tools for advisors and materials to educate employers and plan participants. Advisors will have control of clients’ investments through T.D. Ameritrade’s open architecture platform.

“We listened to advisors and they wanted a simplified, branded retirement plan solution to help them gather assets they’re not capturing today,” said Skip Schweiss, managing director, T.D. Ameritrade Institutional and president, T.D. Ameritrade Trust, in a statement.

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