Legal Seminar, Chicago, IL

ITCs vs. RIAs • Some executives of ITCs question if they had to do it all over again if they wouldn’t just be an RIA. • As an RIA there is much less capital, seemingly less regulation and much of the investment advice provided can be done without fiduciary powers. • Many, however, view being a fiduciary as a true calling and believe that they have a significant roll to play above and beyond providing investment advice. • RIAs continue to be the major competitor for ITCs.

Charter Competition A. Office of Thrift Supervision (“OTS”)

• Did not survive the financial regulatory reform under Dodd-Frank. Eliminated in July 2011 by merger into OCC – no longer an option. • Was tagged as a “bad” regulator, rightly or wrongly, by Congressional leaders and industry analysts. • FDIC insurance for OTS chartered trust companies has been viewed as a benefit and protection in case of a resolution, which protection the OCC and states have not had. • OTS Thrift chartered ITCs still exist, with FDIC insurance. Now regulated by OCC.