News, Vision & Voice for the Advisory Community


Schwab won't stop at wire transfer check-up calls in its quest for airtight security of RIA client assets

Top service exec at big custodian says the tumult of the last 18 months led to the escalation of asset safeguards

Author Brooke Southall February 25, 2010 at 5:36 AM
no description available
Joseph Vietri: Check-up calls on wire transfers will continue indefinitely and more safeguarding steps will be added to the program

Tim Welsh


Joseph Vietri


J.J. Burns



February 25, 2010 — 2:46 PM

Brooke: Re article’s reference to “Vietri said Schwab did not implement the program in response to an 'incident’ that was reported in an earlier press report. 'That was inaccurate information,’ he added.”
It flatters me when pubs like ours, Investment News, break stories and are followed by others on the beat. But if you’re paraphrasing you should put in context that it was an adviser who said he was told by his Schwab service rep that Schwab’s new policy stemmed from a recent incident. Schwab declined to respond. We report the news, we don’t create it. You might also think about use of terms like “exclusive interview” and disclosure of whether people quoted in your stories are paid by firms they are commenting on or by rival firms, and also whether they are contributors to your interesting pub.

Elizabeth MacBride

Elizabeth MacBride

February 25, 2010 — 6:48 PM

Congratulations to InvestmentNews for breaking the Schwab wires story; we are pleased that you are flattered by our follow-up story. We are flattered, in turn, that you’ve commented on our site. RIABiz is a small start-up publication, but it is committed to high journalistic standards. We stand by our sources.

David Lucca

David Lucca

March 4, 2010 — 4:11 PM

In so many ways, Charles Schwab leads the industry. This is one more great example. RIABiz, thanks for covering this!



January 8, 2016 — 4:54 AM

Charles, great article….
I was one “unintended victim” of the overzealous Charles Schwab security check for an overseas wire transfer in December to Hong Kong. I have been a customer for over 20 years, but my wire transfer to Hong Kong was rejected after initial indications it was going through. I did not receive a 'check up call’, only the Charles Schwab rejection email. I could never get any reason why it was rejected when I asked by phone or by email.
My workaround was to wire the money to Bank of America and used my Merrill Lynch Wealth Management account to wire the money to Hong Kong. I did answer the many questions to Merrill Lynch asked to verify my identity. Charles Schwab asked me similar questions also. In the end Merrill Lynch transferred same day as my phone call request.

Mr. Vietri, you and your team at Charles Schwab will be losing my business in the near future. I know you are big guy, and big picture guy. I am just a small potato trying to buy a home for my family here in Hong Kong. You force me to make my decision, without the respect to give me any reason.

Timothy Welsh, take your head out of the sand and look around. Bad decisions are made by those not willing to think about the consequences to valid customer requests. Your cookbook decision making process is a loser and shows your weakness and inflexible, “I know everything” attitude.


Related Moves

July 16, 2022 at 1:35 AM

TD Ameritrade's board suddenly pushes out Tim Hockey after his big misread of RIAs; Tom Bradley name-dropped as successor

The CEO broke the TD promise never to compete with RIAs, took it back and got sent packing

July 23, 2019 at 4:30 AM

Christa Carone, an ex-Fidelity and Xerox marketing whiz, steps onto a slippery slope at LPL with a daunting task -- to consolidate a NASCAR size brand portfolio... or not?

With no CMO since August, the chief marketing officer will play catch up for a company still hungry to buy more branded B2B and B2C players.

April 2, 2024 at 1:28 AM

A canary in the coal mine, Amy Richardson left Charles Schwab & Co. for an RIA -- before the 2,000 layoffs -- now a robust job market is saving the Schwab diaspora, she says

The former Schwab director wants former colleagues to know life exists after Schwab and good job opportunities are plentiful in the financial services sector.

December 20, 2023 at 1:52 AM

See more related moves

Mentioned in this article:

TD Ameritrade
Asset Custodian
Top Executive: Tom Nally

Nexus Strategy
Consulting Firm
Top Executive: Timothy D. Welsh

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo

White Paper Postings

Common Tags

Recent Articles

Popular Writers

RIABiz logo


About Us




RIABiz, Mill Valley, California
Copyright © 2009-2024 RIABiz Inc. All rights reserved.