A sometimes defensive Bernie Clark makes four points pertaining to Schwab's RIA custody business in an update to Wall Street
The overseer of Schwab RIAs explains the San Francisco giant's difficult-to-do-business-with reputation and the long rollout of SII
Bernie gets the big picture, but as an observer , not as a participant that drives innovation, but simply a reaction to it.
Schwab is defining itself here, not as a strategic collaborator but as a vendor of services separate and distinct from the core activities of the advisor.
This is neither good or bad, just agnostic.
For advisors to thrive they may need more engaged thought leadership which is actionable, which can only come from advisors who afford scale as early adopters.
Thus the shift in industry leadership from custodians to large RIAs who will leave a legacy of advancing industry redefining innovation.
Brent Broadeski, Ron Carson, Fielding Miller as large scale RIAs who are the early adopters will leave a legacy by advancing innovation and scale as practitioners. This goes far beyond the roll-up model that just focuses on the extrapolation of the brokerage business model where IARs sell advice as a product rather than treating advice as an expert prudent process that advisors manage in the client’s best interest.
This is an important distinction as the difference is professional standing and an in-depth understanding of advisory services, its processes, technology, work flow management, conflict management all of which are required for advisors to control their value proposition, cost structure, margins and professional standing.
It would be nice if Schwab were to create large scale institutionalized support for expert fiduciary standing, but it will keep its distance as that would trigger fiduciary liability by being prescriptive. Of course large scale RIAs have no fear of fiduciary duty and professional standing, thus the important leadership role they play in the industry’s evolution.
It is interesting to see that 80% of net new assets are coming from organic growth — Mike Byrnes, President of Byrnes Consulting, LLC, www.byrnesconsulting.com
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
Schwab 2,000-layoff aftershocks roil the industry as it's revealed top tech talent -- led by widely regarded veteran Kartik Srinivasan -- were axed, raising questions about future of Schwab innovation
Behind every layoff a human story as pink slip to an 'unbelievable talent' epitomizes company's determination to cut $500 million in expenses.
November 3, 2023 at 3:49 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
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