How an RIA can capitalize on referral programs offered by Schwab, TD and Fidelity
Success in converting leads favor the firm that makes dedicated hires
Related Moves
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
Charles Schwab Corp. discloses imminent, sweeping 'TD Ameritrade' layoffs, indirectly revealed in new SEC filing that reports it will expense severance mostly in 2023 to gain 'incremental' $500 million synergy in 2024 and beyond
The Westlake, Texas, firm had not previously disclosed the cost of terminations -- people and offices -- or that so many of the farewells will happen by Dec. 30
August 22, 2023 at 12:46 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
See more related moves
TD Ameritrade
Asset Custodian
Top Executive: Tom Nally
RIA Growth
Consulting Firm
Top Executive: Paul Tracey
Mike Byrnes
Good points.
My take on how to make these relationships successful is to:
1. Differentiate your firm from the competition (which is harder to do in this case, as competitors are usually a notch better than the rest just to be accepted into the programs.)
2. Build strong alliance relationships (without being pushy… it takes time to grow trust)
3. Deliver outstanding services to the client referrals so they never leave (to keep the revenue flowing in)
4. Continue to maintain the alliance past the initial courting phase (an area where advisors can make mistakes if complacency sets in)
Mike Byrnes, President
Byrnes Consulting, LLC
http://byrnesconsulting.com/
Twitter: ByrnesConsultin
Steve
Would love some recommendations on GIPS compliant performance reporting sources if you can forward…ST
Nevin Freeman
Hi Steve,
The RIABiz Directory has <a href="http://www.riabiz.com/d?cat=2116007" rel="nofollow" target="_new">a section for Performance Reporting</a> that is a good place to start. I assume most, if not all, modern performance reporting engines will be GIPS compliant.
Nevin
Griffin Meyers
Steve,
There is also a list of service providers on the GIPS website, http://www.gipsstandards.org/compliance/providers/index.html.
Some firms follow the requirements as outlined on the GIPS website and do it in house. Others will take it a step further and have their numbers verified by a third party.
Best,
Griffin
Griffin Meyers
Mike
All great points with #2 and #4 being so critical to getting and maintaining lead flow. If you fail at developing relationships with the ones providing the referrals it’s going to be difficult to be successful in any program.
Best,
Griffin
David Spaulding
Compliance with GIPS does more than demonstrate a good track record; it also shows a commitment and investment in what is understood to be “best practices” for providing historical performance to prospective clients. In addition to compliance, verification is also critically important. Our firm helps clients become compliant and also conducts GIPS verifications. Our newsletter (http://www.spauldinggrp.com/services/resource-center/91-newsletters-pamphlets-a-white-papers.html) and blog (http://investmentperformanceguy.blogspot.com/) provide ongoing information on the standards, as well as all aspects of performance and risk measurement.
David Spaulding
The Spaulding Group, Inc.
www.SpauldingGrp.com
DSpaulding@SpauldingGrp.com
