According to a TD Ameritrade Institutional survey, most investment advisers continue to tell their clients that now is a great time to invest in the financial market rather than encouraging them to cash out their investments in the wake of the financial crisis:
• 93% of investment advisers are not telling clients to cash out investments.
• Over 50% of these registered advisers believe now is the time to invest in equities.
• 43% of them are telling clients to increase their fixed income allocations.
• 53% are having clients increase cash allocations.
• 41% have dramatically increased their communications with clients so they can offer them reassurance.s
506 registered investment advisers participated in the survey. TD Ameritrade Institutional managing director of advisor advocacy and industry affairs Brian Stimpfl says that the results demonstrate how most advisors are staying committed to sticking with their clients’ investment strategies despite volatility in the financial market.
Shepherd Smith Edwards & Kantas LTD LLP Founder and Stockbroker Fraud Lawyer William Shepherd, however, had this to say: “When markets fell 20% or so by early September, brokers and financial advisors should have been listening to their clients carefully to learn the true nature of their risk-tolerances. When any investor expresses strong feelings about losses in an account the investment advisor must act to revise the client’s objectives. Several of our clients told their advisors they were losing sleep over their investments. Yet, instead of revising the clients’ investment objectives – and their investments – as required, the advisors adamantly told their clients not to sell. Now that these investors’ nightmares have come true, the advisors want to hide behind objectives marked on the old forms without taking responsibility for their reckless inaction.”
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TD Ameritrade Institutional
Led by Stockbroker Fraud Attorney William Shepherd, our securities fraud lawyers at Shepherd Smith Edwards & Kantas LTD LLP are dedicated to holding investment advisers and broker-dealers responsible for their misconduct or negligent actions and making sure that our investor clients recoup their losses.