TD Ameritrade's raised its NTF fee to mutual funds and analysts believe rivals may hike theirs, too
Schwab and Fidelity have ample leverage with mutual funds to raise their toll, analysts say
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
Biz Briefs: The sorry scene at my local First Republic branch • Schwab launches new (smaller) lay-off round • Schwab hoovers pennies passing FINRA fee to clients • Gensler pleas for funds • Fidelity owner's private equity pres. retires • an Orion-Envestnet staff switcheroo • LPL dumps FutureAdvisor
Range Rovers screeched in and drivers joined a grim queue to get their cash, and cookie • The Schwab-TDA deal cull count now stands at roughly 3.5% of its staff • FMR's hockey star president has stepped down • SEC chief wants more enforcers • An Envestnet executive proves joining a rival is good business • LPL now has an in-house robot.
April 29, 2023 at 1:36 AM
Fidelity will hire 4,000 staff in first half -- a staggering number but a tapering off from 'unprecedented' rate in 2021-2022 that catapulted it to 68,000 employees
The $10.3 trillion giant explains its hiring -- in a layoff environment -- as an RIA-like goal, namely having the human bandwidth to develop 'lifetime' relationships with its 40 million investors
February 17, 2023 at 2:49 AM
Apex nabs Jon Patullo from 'Schwabitrade' to 'raise the bar' and make his new firm's RIA system as 'frictionless' as the old one
The loved and admired TD Ameritrade software chief will bring his playbook -- and possibly Schwab's -- to Apex, which continues to try putting a winning front-end on its old Penson backend, a source says
October 11, 2022 at 12:40 AM
See more related moves
Top Executive: Tom Nally
Because of breakthroughs in technology and portfolio construction, composite portfolio performance reporting incorporating all a clients holdings is now available to all. From the perspective of the consumer, the advisor and that of a fiduciary, managing accountability, cost, transparency and performance can be achieved far less expensively than a very narrowily focused mutual fund platform which affords little or no holdings transparency. A new generation of investment vehicles and portfolio construction and management technology is about to (1) cut out redundant account administration cost at the manager, client and trustee level that add no value, (2) make it possible to electronically manage and extraordiniary degree of investment and administrative values for an unlimited number of unique custom client portfolios at (3) a fraction of the cost of a mutual fund, while (4) providing the advisor 50% more in compensation.
Trying to win market share by cloning the old mutual fund supermarkets simply makes you competitive using decades old technology. By embracing innovations in portfolio construction technology and investment vehicles (real time buy/sell manager research and overlay management) custodians like TD Amertirade can (1)make continuous comprehensive counsel required for fiduciary standing possible, (2)make advice a process the advisor manages (asset/liability study, investment policy, portfolio construction and management with an audit path to statutory documentation to assure fiduciary standing)rather than a product which brokers sell, (3) greatly elevates the role and counsel of the advisor (4) definitively serves the best interests of the consumer and (5) increases advisor productivity by 50%.
Given we are at the tipping point where advice is not longer incidental to trade execution but trade execution is incidental to advice, the industry is in need of leadership, not just the cloning of outdated platforms based on a different time—where fiduciary standing was not possible. Leadership is advancing transformative innovation rather just keeping up. That is what made Schwab a market leader and is what will again reorder the industry.
To say that many no-load “funds have steep 12b-1 fees that load funds do not carry…” is incorrect, Mr. Southall. Virtually all load funds carry a 12b-1 fee, usually 25-35bp. To be considered a “no load fund”, the fund cannot have a 12b-1 fee greater than 25bp.
Thank you for clarifying that point. Sorry bout that and I’ll make the change in the article.