News, Vision & Voice for the Advisory Community


Can Schwab, six years late to the robo party, 'freeze the market', catch up and blow doors?

The potential is awesome but the San Francisco giant is currently generating PR for an offering that does not yet have a launch date

Author Lisa Shidler and Brooke Southall October 29, 2014 at 8:22 PM
no description available
Simon Roy: It's a classic attempt to freeze the market.

RIA Custodians



Stephen Winks

Stephen Winks

October 29, 2014 — 9:11 PM

As John Bogle observes the brokerage industry is “mostly about illusion, wanting for substance.”

So when Walt Bettinger (a former institutional consultant) interjects substance, greatly elevating the discussion of advice, we all learn how empty the discussion has been to date. The brokerage approach to advice is exposed which treats advice as a product which brokers sell rather than an expert prudent process that advisors manage (as required by statute.). Brokers have no control over their value proposition, cost structure, margins or professional standing which represents a c-change in how advisory services (as opposed to products) are delivered.

Schwab may well transform the entire financial services industry by actually introducing large scale institutionalized support for advice in accord to fiduciary responsibilities required by statute in the best interest of the investing public.

Supporting professional standing in advisory services will win Schwab incredible market share and certainly the preference of every consumer interested in fair dealing and their best interest being served. Everyone is tired of Wall Street placing its best interest ahead of the consumer.


Jack Waymire

Jack Waymire

October 31, 2014 — 3:49 PM

How can this Schwab service not compete with the interests of the RIAs and IARs that use its platforms? The typical 100 bps service fee that is charged by most advisors will be a huge disadvantage for investors who put less emphasis on relationships. Perhaps this is a thinly disguised power play by Schwab that says to RIAs, use our free service or run the risk of losing relationships to lower cost service providers. Schwab has the brand name and horsepower to make this happen. How can RIAs compete with free Schwab investment advisory services? Offer integrated planning, investment, insurance, and tax services. The more services you offer the tougher you are to replace. If you don’t offer these services in-house create a team of professionals who work together to provide integrated solutions.

Related Moves

May 25, 2024 at 2:45 AM

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

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

Chuck Schwab reveals Part B, doubling-down on Walt Bettinger by making him co-chair, a day after Part A -- wagering $15 billion from the Schwab corporate treasury on the CEO's future leadership

The 84 year-old founder's elevation of his 61-year-old protege may foretell bigger fireworks from Rick Wurster who recently took over many of Bettinger's CEO duties, one executive recruiter says.

July 30, 2022 at 12:41 AM

See more related moves

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.