Schwab makes thousands of its RIAs subject to fee for robo-software, allocation of client cash to Schwab Bank
The San Francisco firm told RIAs on a webcast that their firms must have $100 million on account or pay for robo-software
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Fidelity lands RIA whisperer from Schwab in a coup, apparently using quality-of-life perks as lure
Kelly Smith chose the Boston rival for greater flexibility, better pay and a chance to move upmarket to sell family office services to RIAs that mix with the ultra-high-net-worth elite.
February 10, 2023 at 3:39 AM
Alois Pirker sets up shop in Marblehead by taking a page from the RIAs he advises
The former Aite-Novarica consulting chief wants the latitude of Pirker Partners to take the gigs he wants and avoid corporate consulting economics -- namely selling reports.
January 21, 2023 at 5:03 AM
RIA recap: Bernie Clark promises to 'be there' for coming TDA-Schwab system snafus; Fidelity gets custody win; Vanguard dishes out big tax bill to investors
Schwab RIA chief petitions for 'patience' for coming merger inconveniences but 'repapering' is no culprit; Carrie Pomerantz gets Schwab board seat; Addepar wins $65 billion AUM contract.
November 3, 2022 at 1:59 AM
Walt Bettinger sheds 'president' title and Bernie Clark gets new boss as Schwab appoints Rick Wurster as president and No. 2 in charge
The Schwab CEO gets 2016 'Windhaven' hire to share burden of governance from enormity of $8-trillion post-TDA, post-USAA, post-Motif growth.
December 20, 2021 at 11:59 PM
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Jack Waymire
If a 6% minimum was the right constant cash percentage for a retail customer, why does Schwab have a 4% requirement for RIAs? Schwab says it is creating a minimum cash position to offset the expense of rebalancing and tax loss harvesting. Are institutional clients more expensive to rebalance than retail clients? These are automated processes that cost Schwab next to nothing.
Schwab calls cash one of the best defensive asset classes. That is true in a down market. That is not true in a rising market. Cash will be a drag on performance in positive markets. And, what are the odds more astute investors will be willing to pay fees to advisors on a fixed percentage of assets that reside in Schwab Bank. Advisors will be making less money before Schwab deducts 10 bps from the RIAs who have less than $100mm at Schwab.
How many revenue streams does Schwab want to derive from investors and advisors? This service is not investor or advisor friendly – too much spin, too many angles. But, since when did investors have to understand a product to buy it? The Schwab name and the word “free” may be enough to make the service a roaring success.
