TD Ameritrade CEO says concerned reforms may hurt

* Some U.S. reform not addressing crisis-TD Ameritrade CEO

* Wall Street tax could hurt investors -Tomczyk

* Single “fiduciary” standard maybe not best – Tomczyk

By Clare Baldwin, Joe Giannone and Jonathan Spicer

NEW YORK, April 14 (BestGrowthStock) – U.S. financial reform
legislation may not be aimed at the real causes of the
financial crisis and may unintentionally hurt mainstream
investors, TD Ameritrade Holding Co (AMTD.O: ) Chief Executive
Fred Tomczyk said on Wednesday.

A proposed a tax on Wall Street trading and a debate over
whether to require all financial advisers to abide by the same
fiduciary standard might be missing their mark, Tomczyk told
reporters at a brokerage industry conference.

Tomczyk said the proposed tax could unintentionally hurt
mainstream investors.

“The person who designed it or proposed it is really
targeting Wall Street. It’s an anti-Wall Street bill. But the
reality is the relative impact is more severe on the online
brokerage and the average investor,” he said.

“That tax will be a multiple of what we charge them to
trade,” Tomczyk explained. “That’s not at the root cause of the
crisis, so why are you doing it?”

Two years after financial markets nearly collapsed after
years of recklessness, financial reform is a key issue for the
Obama administration and congressional Democrats battling
Republicans over imposing tougher rules on banks and capital

President Barack Obama met with Congressional leaders from
both sides of the aisle on Wednesday Both sides said they
believed a deal could be reached but did not provide a
timetable. [ID:nN13110937]

Tomczyk also sounded a cautionary note about proposed
legislation aimed at assigning all financial advisers the same
level of accountability to their clients.

Currently, financial advisers must operate under a
fiduciary standard which requires them to select the best
investments and products for their clients. Most brokers are
required only to select investments and products that are
suitable, but not necessarily the best.

“It’s hard for me to comprehend that this is at the root
cause of the crisis,” said Tomczyk. He said that if there is a
move to a single standard it should be to the higher fiduciary
standard, but it might also make sense to let broker dealers
operate under different rules.

The debate is especially tricky for Ameritrade, an online
brokerage with a largely self-directed clientele.

“What does it mean to be a fiduciary when all you’re doing
is making the products available and people are buying them?
What does that mean?” he said. “Does that mean we’re
responsible for their own actions?”

The new rules could reduce choice and increase costs, he

(Reporting by Clare Baldwin, Joe Giannone and Jonathan Spicer,
editing by Matthew Lewis)

TD Ameritrade CEO says concerned reforms may hurt