2015 Plan Sponsor Sentiment Survey. December 2015

Transcription

1 2015 Plan Sponsor Sentiment Survey December 2015

2 Table of Contents Study Overview 3 Executive Summary 4 Detailed Findings RIAs and Plan Sponsors 6 Retirement Plan Priorities 14 Regulatory Matters 21 Appendix: Plan Sponsor Profile 35 2

3 Study Overview Background TD Ameritrade Institutional seeks to understand Plan Sponsor sentiment on the state of their existing retirement plans, their plan advisors, and the changing regulatory landscape. Objectives Gauge sentiment on current retirement plan market landscape Assess awareness of key regulatory issues Methodology 242 Plan Sponsors nationwide completed a 15-minute telephone survey from September 28, through October 6, Margin of error is +/- 6%. True North Market Insights conducted the survey. TD Ameritrade Institutional was not identified as the survey sponsor. Respondent Profile (Self-Identified) The primary or shared decision maker regarding which retirement plans or investment firms to offer employees. Employed by an organization with 25-10,000 employees with position and/or title such as Benefits Manager, Human Resource Manager, Risk Officer; Owners, CEOs, or CFOs of smaller companies. Survey participants had an average of 566 participants in their retirement plans, representing an average of $57.2 million in total plan assets. 3

4 Executive Summary PLAN ADVISORS AND RETIREMENT PLANS RIAs outperform others in all areas of support and service. One-on-one participant advice (50% vs. 29%); fiduciary support (43% vs. 23%); and plan sponsor education (40% vs 27%) are provided at nearly twice the rate of others. RIAs are 64% more likely to offer general investment advice; 60% more likely to advise on plan selection and design; and 34% more likely to handle enrollment. Plan Sponsors are satisfied with RIAs particularly when it comes to things like knowledge on investment choices, meeting fiduciary requirements and investment advice to participants. There s an opportunity for RIAs to connect with more Plan Sponsors. Plan Sponsors say performance reporting, participant advice and fiduciary education are the most valuable support services. Only 28% of Plan Sponsors use a RIA. One in four Plan Sponsors that do not use an RIA say they have never been approached by one. Sixty percent are on the fence about staying with their current plan provider over the coming year. Lower plan fees and more diverse investment choices are top reasons to switch providers. Top goals for 2016: evaluate plan investment choices and encourage participation. Biggest concerns: diversity of the plan s investment line up. Most offer mutual funds (60%); only 27% offer target date funds; and just 15% offer ETFs. One in four have auto-enrollment; 15% offer self-directed brokerage accounts. Two in five say their participants want more 1:1 advice. 4

5 Executive Summary KEY REGULATORY MATTERS 62% do not fully understand the Department of Labor (DOL) Fee Disclosure Regulation. More than half (52%) that use RIAs say their RIAs are sending them information about their fiduciary responsibilities, and two in five are getting education on participant fee disclosure. Plan Sponsors that don t use RIAs say they are doing less to address this; 30% haven t addressed it at all. 70% do not fully understand the proposed DOL Fiduciary Compliance Rule. One in four have done nothing at all to understand the rule better. Plan Sponsors are largely ambivalent about the rule s potential benefits or impact: fewer than half agree that it will benefit plan participants; only 36% agree that ERISA compliance will get easier. 73% lack awareness about Tibble vs. Edison. Fifty three percent of Plan Sponsors are unsure whether their plans offer funds with the lowest fees in their respective share classes. Plan Sponsors that use RIAs are more likely to hold their fiduciary duties to a higher standard than those that do not use RIAs. 5

6 Detailed Findings: RIAs and Plan Sponsors

7 RIAs provide more support to Plan Sponsors What Kind of Retirement Plan Support Do You Receive? Education of plan participants Enrollment of plan participants One-on-one advice to plan participants 29% 35% 40% 47% 51% 50% Investment advice 28% 46% Investment management Education to plan sponsor / benefits team Recordkeeping / TPA function 38% 31% 40% 27% 34% 29% Plan selection or design 25% 40% Plan fiduciary support 23% 43% Service provider selection and guidance 20% 31% None of these Don t know 0 % 8% 6% 8% Have RIA Use Other Type Base: Those with outside personnel that supports the management of the company's retirement plan (Have RIA n=68, Use Other Type n=174) Q13. In what capacity(ies) does your financial advisor or plan administrator support your company s retirement plan? Multiple responses accepted. / Statistically higher / lower than Other Users at 90% confidence level. 7

8 More than a quarter of Plan Sponsors use RIAs Type(s) of Outside Support Used to Help Manage Retirement Plan Other Accounting Firm 12% 13% 36% Brokerage / investment firms that also offer 401(k) services Retirement Plan Consultant 21% 22% 28% Registered Investment Advisors (RIAs) Firm specializing in only 401(k) management Base: Total Respondents (n=242) S3. Which of the following personnel does your company use to support the management of your company s retirement plan? Multiple responses accepted. 8

9 Most sponsors are satisfied with RIA services Is knowledgeable about investment options Helps me meet legislative/regulatory/ ERISA fiduciary requirements Helps select plan administrator and/or record keeping vendors Satisfaction with Current RIA (Satisfied or Higher) 90% 90% 88% Overall ease of working with 87% Responsiveness to requests/ communications 85% Is able to give investment advice to my employees 82% Base: Those with RIA (n=68) Q16. How satisfied are you with your current Registered Investment Advisor (RIA), on the following attributes? Top-3 Box Score: Rating 3, 4 or 5 on a 5-point scale where '1' means very dissatisfied and '5' means extremely satisfied. 9

10 Majority of RIAs win business through relationships and referrals How Plan Sponsors Chose Their RIAs Don't know RIA reached out and made in-roads with our organization Other 13% 4% 9% 37% Had a relationship with owner or executive Referral 25% 26% Request For Proposal (RFP) or Search Base: Those with RIA (n=68) Q15. How did you choose your current RIA to support your organization's retirement plan? Multiple responses accepted. 10

11 Reporting is #1, followed by investment advice and fiduciary education Extremely or Very Important Services Investment performance reports 63% Investment advice to your employees Fiduciary education to you and your plan committee Plan design Assistance and monitoring of investment firm choice Provide legislative and regulatory updates 62% 58% 57% 51% 50% Introduce compliance resources 49% Recommend a default investment Investment Policy Statement (IPS) development 45% 42% Base: Total Respondents (n=242) Q18. Please rate how important it is that you, as the person responsible for decisions regarding the retirement plan, have support services for each of the following fiduciary or compliance tasks. Top-2 Box Score: Rating 4 or 5 on a 5-point scale where '1' means not at all important and '5' means extremely important. 11

12 Many Plan Sponsors are lukewarm about their plan providers: 60% open to a switch Intention to Keep or Switch Current Plan Provider Likely to Switch Next 12 Months 40% 44% 16% Definitely/ Probably Will Not Might or Might Not 60% Definitely/ Probably Will Base: Total Respondents (n=242) Q9. How likely are you to switch your current retirement plan provider in the next 12 months? 12

13 Lower plan fees and diverse investment choices warrant a switch in plan providers Why Switch Plan Providers? Seek lower plan fees Diversity of investment options More / better tools and resources for plan participants Greater number of investment options Advice option for participants who want one-on-one guidance Easier plan administration / record-keeping by outsourcing Ability to work with a local plan administrator Automated offering Diversity of ETF sponsors ERISA/fiduciary duties Default enrollment option 34% 28% 23% 21% 19% 17% 11% 11% 9% 7% 7% Other None of the above/ I have no plans to switch Base: Total Respondents (n=242) Q12. Which of the following might cause you to switch retirement plan providers? Multiple responses accepted. 7% 22% 13

14 Detailed Findings: Retirement Plan Priorities

15 Top goals: evaluate investment choices and encourage participation Top Goals for the Upcoming Year Evaluating plan investment options 51% Encouraging employees to participate in the retirement plan 49% Keeping pace with changing regulatory requirements 45% Managing plan fees 41% Hiring a fiduciary advisor to manage the retirement plan (RIA) 13% Other 2% Base: Total Respondents (n=242) Q29. In general, what are your top goals for the upcoming year? Multiple responses accepted. 15

16 Biggest concerns: fees and investment choices Top Concerns with Existing Retirement Plan Fees 27% Number of investment options It needs better tools and resources for plan participants It lacks diversity of investment options Lacks advice option for participants who want one-on-one guidance It lacks a local plan administrator It needs an automated option Administrative / record keeping concerns No default enrollment It lacks diversity of ETF sponsors ERISA / fiduciary liability concerns Other 17% 17% 16% 15% 12% 12% 12% 7% 7% 5% 6% I have no concerns at this time 29% Base: Total Respondents (n=242) Q10. What are your top concerns about your existing retirement plan? Multiple responses accepted. 16

17 Plans most commonly include mutual funds Types of Investment Vehicles Offered 60% 37% 27% 6% 4% 2% 10% 12% 15% I don t know None of the above Other Company stock Automated solutions ETFs Lifecycle or target-date funds Managed accounts Mutual funds Base: Total Respondents (n=242) Q6. Which of the following investment options are offered to participants in your company's retirement plan? Multiple responses accepted. 17

18 Sponsors are slow to embrace enhanced plan-design choices Current Plan Design Roth 401(k) options 39% One-on-one advice for plan participants Auto-enrollment Lifecycle or target-date default option Open architecture investment solutions Health Savings Account (HSA) 27% 26% 20% 19% 16% One-fourth of sponsors offer auto-enrollment Self-directed brokerage account (SDBA) A line-up which is comprised of proprietary products from one or two fund sponsors Other None of the above I don t know 1% 6% 5% 15% 14% Base: Total Respondents (n=242) Q5. Which of the following comprises your current plan design? Multiple responses accepted. 18

19 Plan participants hunger for one-on-one advice At least two out of five Plan Sponsors say plan participants have an appetite for personal investing advice Appetite for One-on-One Advice Hungry for more: Plan participants have a voracious appetite for guidance on investing Healthy appetite: There is a steady demand for personal advice 10% 34% 44% Satisfied: It seems that few plan participants are interested in using this service 33% Not hungry: Little/no demand from participants for one-onone advice 17% I am not sure 6% Base: Total Respondents (n=242) Q3. How would you characterize the appetite for one-on-one advice among your plan participants? 19

20 Plan participants want advice on investing for retirement Interest in Specific Types of One-on-One Advice Planning and investing for retirement 53% The benefits of investing in a 401(k) 40% Asset allocation 38% Specific investments (i.e., ETFs, mutual funds, target date funds, bonds) 36% Understanding fees 31% Asset classes and diversification 26% Other 6% Don t know 3% Base: Those interested in one-on-one advice (n=188) Q4. Which of the following topics are your plan participants most interested in learning more about? Multiple responses accepted. 20

21 Detailed Findings: Regulatory Matters

22 Detailed Findings: Fee Disclosure Regulation Department of Labor (DOL) rules require the disclosure of fee and expense information to individuals participating in retirement savings accounts such as 401(k) plans, including disclosures regarding administrative and investment costs. The DOL also set out to enhance what service providers disclose to you through its plan sponsor fee disclosure rule. This regulation is intended to ensure that all participants, including plan sponsors, have the information they need to make informed decisions regarding the retirement savings program.

23 Sixty two percent of Plan Sponsors are unclear on 2012 DOL fee disclosure regulation Overall Awareness of Fee Disclosure I had not heard of these DOL fee disclosure rules. I had heard of the information but am not at all knowledgeable about its implications. 8% 14% 62% I was somewhat aware of this information but am uncertain of all the implications. 40% I was very aware of this information and fully understand all of its implications. 38% Awareness Base: Total Respondents (n=242) Q19. How would you rate the level of your awareness and understanding of the DOL rules on fees disclosure described above? 23

24 RIA communication on fiduciary responsibilities is underway Actions Taken by RIAs Since Fee Disclosure Rules Came Out General communication about your fiduciary responsibilities as plan sponsor 52% Education on fee disclosure to plan participants 42% Education on your fiduciary duties 41% Updated you about their fiduciary duties as your RIA 34% Suggested a complete retirement plan review or audit 31% Provided / offered tools & checklists to help evaluate fee disclosure and assist with documenting compliance 23% Suggested a review of plan fee communication 20% Not aware of any regulatory updates around fee disclosure 9% None of the above 6% Base: Those with a RIA (n=64) Q20. Since the Department of Labor s fee disclosure rules came out in July of 2012, has your RIA offered any of the following: Multiple responses accepted. 24

25 Plan Sponsors not using RIAs have taken fewer steps to address fee disclosure Non-RIA User Conducted Activities on Fee Disclosure Suggested a review of plan fee communication 23% Gathered information regarding fee disclosure to plan participants Sent out general communication about your fiduciary responsibilities Gathered information on your fiduciary duties 18% 22% 22% 30% say they ve done nothing to address fee disclosure Suggested a complete retirement plan review or audit 15% Provided / offered tools & checklists to help evaluate fee disclosure and assist with documenting compliance 12% None of the above 30% Base: Those not using a RIA but aware of Fee Disclosure Rule (n=158) Q21. Since the Department of Labor s fee disclosure rules came out, have you conducted any of the following? Multiple responses accepted. 25

26 Detailed Findings: Proposed DOL Fiduciary Compliance Rule The Department of Labor s proposed new fiduciary compliance rule would require all advisors providing investment advice to retirement plan participants to act as fiduciaries. This would effectively require advisors to make decisions that put plan participants interests first. The rules are aimed at broker-dealers that are currently allowed to exercise a lower standard of care called suitability. Many observers believe this lets brokerage firm advisors to recommend investment products beneficial to the advisor and his/her employer but maybe only suitable for the client. Advisors working for registered investment advisor (RIA) firms already have a fiduciary duty when providing investment advice.

27 Seventy percent do not fully understand the proposed DOL Fiduciary Compliance Rule Plan Sponsor Awareness of Proposed Fiduciary Compliance Rule I had not heard of the DOL Fiduciary Compliance Rule. 15% I had heard of the information but am not at all knowledgeable about its implications. 17% I was somewhat aware of this information but am uncertain of all the implications. 38% I was very aware of this information and fully understand all of its implications. 30% Awareness Base: Total Respondents (n=242) Q22. How would you rate the level of your awareness and understanding of the DOL fiduciary compliance rules described above? 27

28 Plan Sponsors do not know what to make of the proposed changes The proposed revisions will ultimately benefit plan participants Disagree, 9% Not Sure, 6% Plan sponsors are best served by a revised definition of the term 'fiduciary' Disagree, 6% Not Sure, 8% Neutral, 37% Agree, 48% Agree, 43% Neutral, 43% The proposed revisions will require plan sponsors to use independent financial advisors as plan cofiduciaries to ensure ERISA compliance Disagree, 9% Not Sure, 9% The proposed revisions will make ERISA compliance easier for plan sponsors Disagree, 13% Not Sure, 9% Agree, 40% Agree, 36% Neutral, 42% Neutral, 42% Base: Total Respondents (n=242) Q23. Please rate your level of agreement with the following statements regarding the DOL s proposed changes to the fiduciary rule. Rating on a 5-point scale where '1' means strongly disagree and '5' means strongly agree. 28

29 Most Plan Sponsors are asking about potential conflicts Action Taken as Result of Regulatory Requirements Have a conversation with your current plan advisor about potential conflicts of interest/fiduciary care 40% Complete a review of design, fees, operation, and compliance 32% One in four have done nothing Conduct an in-depth analysis of your current, or future, retirement plan provider 27% Conduct a search for a fiduciary plan advisor (request for proposal) 14% Other 1% Take no action 25% Base: Total Respondents (n=242) Q28. As a result of these regulatory requirements, do you plan on taking, or have you already taken, any of the following actions? Multiple responses accepted. 29

30 Detailed Findings: Tibble vs Edison In May, 2015, the U.S. Supreme Court unanimously ruled that retirement plan sponsors have a fiduciary duty to continuously monitor investments inside their retirement plans. [Tibble v. Edison Int l, No (U.S. May 18, 2015)]

31 Seven in 10 Plan Sponsors know little about Tibble vs. Edison Awareness of Tibble vs. Edison I had not heard of the U.S Supreme Court s decision. 27% I had heard of the information but am not at all knowledgeable about its implications. 11% 73% I was somewhat aware of this information but am uncertain of all the implications. 35% I was very aware of this information and fully understand all of its implications. 27% Awareness Base: Total Respondents (n=242) Q24. How would you rate the level of your awareness and understanding of the Tibble v. Edison Supreme Court case ruling requiring retirement plan sponsors to have a fiduciary duty to continuously monitor investments inside their retirement plans? 31

32 Most Plan Sponsors benchmark fund performance and fees annually - or more often Frequency of Benchmarking Performance and Fees Less often than every other year 12% Every other year 10% Annually 40% Semi annually 13% Quarterly 13% 69% More often than quarterly We do so when we select funds for our plan 3% 9% 29% review more than once per year Base: Total Respondents (n=242) Q25. How often do you benchmark the performance and fees of the investment options in your company s retirement plan to see how they line up against other funds available in the marketplace? 32

33 Fifty-three percent are unsure if their plans offer funds with the lowest fees Confidence on Whether Plan Offers Lowest Fees 53% Confidence (All respondents) 10% 43% 47% Plan Sponsors that use RIAs are more likely to be confident their plan offers funds with the lowest fees. Confidence (Use an RIA) 15% 26% 59% Not Very / Not At All Confident Neutral/Unsure Somewhat/ Very Confident Base: Total Respondents (n=242) Q26. How confident are you that your company s retirement plan offers funds that have the lowest (or among the lowest) expense ratios/fees in their respective asset class categories? 33

34 Plan Sponsors that use RIAs say they hold themselves to a higher fiduciary standard Plan Sponsors Level of Agreement With What Duties They Owe Participants: * Plan sponsors should offer funds in the best interests of plan participants 68% 79% Plan sponsors should conduct regular and timely reviews of the performance / fees of their investment selections 66% 81% Reviews of retirement plan investments for performance / fees should occur at least once a year 68% 75% Plan sponsors have an ongoing responsibility to ensure that the investment options available to plan participants are prudent 66% 75% Plan sponsor fiduciary duty for investments inside a retirement plan does not end once funds are selected for the plan 63% 74% If a lower-fee share class is available for funds in a retirement plan, plan sponsors should switch into that share class 50% 57% Have RIA Use Other Type * Sponsors have a duty to put their clients interests first, whether they use RIAs or another type of advisor Base: Total Respondents (Have RIA n=68, Use Other Type n=174) Q27. Please rate your level of agreement with the following statements regarding your fiduciary duties as the plan sponsor. Top-2 Box Score: Rating 4 or 5 on a 5-point scale where '1' means strongly disagree and '5' means strongly agree. / Statistically higher / lower than Other Users at 90% confidence level. 34

35 Appendix: Plan Sponsor Profile

36 Plan Sponsor profile Plan Sponsor Profile Total SUPPORT USES COMPANY SIZE More Have RIA No RIA 25 to to 100 Than 100 n=242 n=68 n=174 n=92 n=79 n=71 Number of Employees 25 to 50 38% 37% 39% 100% to 75 14% 18% 13% - 43% - 76 to % 13% 21% - 57% to % 15% 10% % 251 to 500 6% 3% 7% % 501 to 5,000 10% 10% 10% % 5,001 to 10,000 2% 3% 1% - - 6% Over 10,000 0% 1% % Average ,673 Number of Participants Under 25 19% 24% 17% 39% 9% 4% 25 to 50 29% 18% 33% 45% 30% 7% 51 to 75 14% 22% 11% 2% 34% 7% 76 to % 7% 13% 8% 23% 4% 101 to % 13% 9% 2% 3% 28% 251 to 500 5% 1% 7% 2% - 15% 501 to 5,000 8% 9% 7% % 5,001 to 10,000 2% 4% 1% 1% 1% 4% Over 10,000 1% 1% 1% 1% - 3% Average ,454 Job Title Human Resource Manager/Director 24% 22% 24% 20% 19% 34% Benefits Manager/Director 13% 13% 13% 9% 13% 18% Owner/Managing Partner 14% 18% 13% 12% 24% 7% CEO/President 14% 10% 15% 15% 15% 10% CFO 12% 16% 10% 16% 9% 8% Controller 3% 3% 3% 2% 3% 4% Vice President 5% 6% 5% 3% 6% 6% Other - 12% 18% 23% 11% 13% Base: Total Respondents S1. Which of the following best describes the number of employees in your company? S4. Please select the category below that best describes the number of participants in your company's retirement plan S5. Which of the following best describes your job title? / Statistically higher / lower than Other Groups at 90% confidence level. 36

37 Plan Sponsor profile Plan Sponsor Profile Total SUPPORT USES COMPANY SIZE Have RIA No RIA 25 to to 100 More Than 100 n=242 n=68 n=174 n=92 n=79 n=71 Assets in Company's Plan Under $1 Million 19% 15% 21% 28% 22% 4% $1 Million to under $5 Million 26% 29% 24% 27% 30% 18% $5 Million to under $10 Million 19% 18% 19% 22% 23% 10% $10 Million to under $25 Million 9% 7% 10% 10% 9% 8% $25 Million to under $50 Million 4% 6% 3% - 4% 8% $50 Million to under $100 Million 5% 4% 6% 2% 3% 13% $100 Million to under $250 Million 4% 6% 3% 2% 3% 8% $250 Million to under $500 Million 1% 1% 1% 1% - 3% $500 Million to under $750 Million 2% 4% 1% - - 7% $750 Million to $1 Billion 2% 1% 2% - - 7% Over $1 Billion 1% 3% - - 1% 1% Average $57,197,727 $70,325,397 $51,929,936 $14,800,000 $12,835,616 $167,556,452 Average Individual Account Balance Under $26,000 20% 18% 21% 27% 18% 13% $26,000 to $74,999 20% 19% 21% 23% 27% 10% $75,000 to $99,999 12% 15% 10% 11% 15% 8% $100,000 to $149,999 14% 16% 14% 11% 18% 15% $150,000 to $199,999 5% 6% 4% 4% 3% 7% $200,000 to $249,999 4% 7% 3% 4% 1% 7% $250,000 to $299,999 3% 1% 3% 2% 1% 6% $300,000 to $349,999 1% - 1% - - 3% $350,000 to $399,999 2% 1% 2% 1% 3% 1% $400,000 to $449,999 2% 1% 2% 1% 1% 4% $500,000 to $1 Million 3% 4% 3% 4% 1% 4% Over $1 Million 0% 1% % Average $105,416 $116,089 $100,884 $82,567 $89,196 $157,921 Base: Total Respondents Q1. What is the size of the total assets in your company's retirement plan? Q2. What is the average individual account balance in your company's retirement plan? Don't know responses omitted from report. / Statistically higher / lower than Other Groups at 90% confidence level. 37

38 Plan Sponsor profile Type of Organization Total SUPPORT USES COMPANY SIZE Have RIA No RIA 25 to to 100 More Than 100 n=242 n=68 n=174 n=92 n=79 n=71 Agriculture 1% 1% 1% 3% - - Automotive 2% 4% 1% 2% 3% 1% Banking or Financial Services 5% 6% 5% 8% 4% 3% Construction 5% 7% 5% 5% 6% 4% Consulting 6% 6% 6% 9% 4% 4% Education 8% 6% 9% 8% 6% 10% Energy or Utilities 1% 1% 1% 2% - 1% Engineering 2% 1% 3% 1% 4% 3% Entertainment 2% - 3% 2% 1% 3% Food, Beverage or Restaurants 2% 3% 1% 2% 1% 1% Healthcare, Medical or Pharmaceuticals 6% 9% 5% 3% 10% 6% HR/Business Management 2% - 2% 3% 3% Insurance 2% 1% 2% 2% - 4% IT, Computers or Software 6% 4% 6% 5% 8% 4% Logistics 0% - 1% - - 1% Manufacturing 17% 16% 17% 13% 16% 21% Non-profit 4% 4% 4% 3% 4% 6% Public Service/Government 2% 1% 3% 3% 1% 3% Real Estate 5% 3% 6% 3% 10% 1% Retail 4% 3% 4% 1% 6% 4% Social Services 2% 4% 1% - 3% 3% Telecommunications 1% - 2% 2% 1% - Transportation 2% 4% 1% 2% - 4% Travel/Hospitality 3% 3% 3% 5% - 4% Wholesale 4% 3% 4% 4% 4% 3% Other 5% 6% 5% 9% 5% 1% Base: Total Respondents D1. Which of the following BEST describes the type of organization you work for? / Statistically higher / lower than Other Groups at 90% confidence level. 38

39 Important Information About the Survey The results of TD Ameritrade Institutional's first-ever Plan Sponsor Sentiment Survey are based on responses from a 15-minute telephone survey of retirement plan sponsors nationwide conducted by True North Market Insights on behalf TD Ameritrade Institutional, a subsidiary of TD Ameritrade Holding Corporation. From September 28 through October 6, 2015, 242 plan sponsors with at least 25 employees from the public and private sectors were asked about their views on their retirement plans, their need for services and support, and related regulatory issues. Survey participants self-identified as the primary or shared decision maker for their organization's retirement plan offering. TD Ameritrade Institutional was not identified as the sponsor of the survey. The margin of error in this survey is +/- 6%. True North and TD Ameritrade are separate, unaffiliated companies and are not responsible for each other's products and services. 39

40 Important Information About TD Ameritrade Institutional TD Ameritrade Institutional is a leading provider of comprehensive brokerage and custody services to more than 5,000 fee-based, independent registered investment advisors (RIAs) and their clients. 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. TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation. About TD Ameritrade Holding Corporation Millions of investors and independent registered investment advisors (RIAs) turn to TD Ameritrade s (NYSE:AMTD) technology, people and education to make investing and trading easier to understand and do. Online or over the phone, in a branch or with an independent RIA, first-timer or sophisticated trader, our clients want to take control and we help them decide how: We ve been bringing Wall Street to Main Street for 40 years. An official sponsor of the 2016 U.S. Olympic and Paralympic Teams, as well as an official sponsor of the National Football League, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade s newsroom or for more information. 1 TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation. Brokerage services provided by TD Ameritrade, Inc., member FINRA ( / SIPC ( Retirement plan services are offered by TD Ameritrade Trust Company, a non-depository trust company that acts as a custodian and/or directed trustee and is not a member of FINRA or SIPC. TD Ameritrade Trust Company is a subsidiary of TD Ameritrade Holding Corporation. Source: TD Ameritrade Holding Corporation 40