TD Ameritrde Settles with SEC Investors Still Lose Millions- Firm Still Wants SEC to Regulate Advisors

Representing Investors Nationwide

In February 2011, the Securities and Exchange Commission (SEC) fined TD Ameritrade $10 million for failing to properly supervise its reps while the Reserve Primary Fund was losing value and eventually “broke the buck.” Even with that historical collapse, the brokerage firm would rather see advisors regulated by the commission and not the Financial Industry Regulatory Authority (FINRA) or some self-regulatory body. They went so far as to propose advisors pay the SEC to help cover the cost of continued commission oversight.

As of late February, TD Ameritrade clients still held a majority of the outstanding Reserve Primary shares after the fund has liquidated. Under the terms of its agreement with the SEC, the firm distributed the $10 million to its clients. However, the payment will still not make investors whole but will reduce their losses by approximately 10%. According to sources, it would have taken about a $40 million fine to fully replace all the money that Reserve Primary lost its shareholders.

The attorneys at Colling Gilbert Wright & Carter are investigating and filing arbitration claims on behalf of investors who lost money in the Reserve Primary Fund. If you lost shares in this fund, please contact our office for a free case evaluation.