News, Vision & Voice for the Advisory Community


Schwab shoos $25 billion of client assets out the door as it calls the bluff of employers with lopsided 401(k) contracts

The San Francisco giant is trading recordkeeper revenue for the prospect of wielding its mighty brand directly at plan participants

Author Lisa Shidler February 28, 2014 at 8:49 PM
no description available
Steve Anderson: We made the decision and notified these clients that we're going to resign our services. I personally made the call and explained our thinking.

Related Moves

Biz Briefs: Vanguard's tax-loss harvest yields a caveat• Vermont green with envy ... of red states? • CFP Board spends $12 million on bungee metaphor • BlackRock isn't neutral on Credit Suisse • Women are the Goliath of 'David' in UK finance

Tax-loss harvest gains may have some home assembly required, says Jeff DeMaso • Adrian Johnstone is now in the driving seat at Practifi • CFP Board spending just topped $150 million • and Vermont shares some Texas thinking on ESG investing.

March 25, 2023 at 1:32 AM

Biz Briefs: Fidelity says humans beat robots, even for Gen Z • Joe Lonsdale's Opto starts signing RIA test-drivers • Vanguard launches oddly delayed fund • Wealthbox hires, and Dynasty buys

Fidelity wins Delta Airlines business with sweetener • Opto pairs-up with Riskalyze and Merchant • Moonfare raises $15 million • CAIS bucks real estate trend • Vanguard launches "curious[ly]" delayed fund • WealthBox, Dynasty, and others buy and hire.

March 8, 2023 at 3:28 AM

Biz Briefs: Schwab puts checks for $52 million in mail to robo-RIA customers allegedly misled about cash allocations • BlackRock blacklisted (again) • iShares beats NZAM-exiter Vanguard • Fidelity makes first acquisition in eight years • CFP board realizes Moms don't like CFPs

BlackRock gets Kentucky coal in stocking, and Vanguard keeps skating; iShares inches above -- by 2.8% -- Vanguard's annual net new ETF asset haul; Fidelity takes "natural next step" for stock plan business; new CFP chair outlines plans and the DOJ is set to become a major Robinhood shareholder..

January 13, 2023 at 3:01 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

See more related moves



March 3, 2014 — 11:30 PM

The fact that such a reputable company/401k provider has come out so strongly and implied that it is not interested in helping individual participants grow there retirement portfolios but rather view these participants solely as lucrative revenue sources for their retail advisor network is both shocking and disturbing. I hope that these plan sponsors, begin to open their eyes to the fact that the traditional recordkeepers and advisors that make up the retirement industry have been preying on their respective employees for years and should look to find ways to safeguard them against this.

Brooke Southall

Brooke Southall

March 4, 2014 — 7:04 PM


I’m not familiar enough with the intricacies of plan sponsor-to-recordkeeper contracts to respond fully here. But it does seem like plan sponsors may be complicit here. They seem to want to use Schwab as a pure utility and not allow them to show off as a branded advisor pre- or post-rollover.

Maybe somebody can cast light.




March 22, 2014 — 6:28 PM

More proof that clients are cattle at this provider. May be more companies will walk.



June 25, 2014 — 9:34 PM

Apartment properties destinations to help you retain a fantastic for lengthy- amount of money keep for holiday or enterprise, by yourself, along with your liked types, co-workers or buddies.

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo