Schwab makes thousands of its RIAs subject to fee for robo-software, allocation of client cash to Schwab Bank
The San Francisco firm told RIAs on a webcast that their firms must have $100 million on account or pay for robo-software
Walt Bettinger sheds 'president' title and Bernie Clark gets new boss as Schwab appoints Rick Wurster as president and No. 2 in charge
The Schwab CEO gets 2016 'Windhaven' hire to share burden of governance from enormity of $8-trillion post-TDA, post-USAA, post-Motif growth.
December 20, 2021 – 11:59 PM
Fidelity, others pounce on TD RIAs with a vengeance following Schwab merger, but Schwab finds a white knight to defend its new Texas fort, and, suddenly, Tom Nally's future seems clouded at 'Schwabitrade'
Former TD Ameritrade RIA chief and retail chief Tom Bradley will assist Bernie Clark in instilling trust and applying 'modern' service to the under$100-million crowd during an age of anxiety at both firms
December 10, 2019 – 2:05 AM
361 Capital has eight-year asset rise from $100 million to $1.7 billion then makes two people moves after net inflows slow to trickle
The liquid alts provider is a beneficiary of referrals from Lovell Minnick, which owns a stake, but will need to apply 'elbow grease' to marketing to keep pace with redemptions and the law of large numbers
November 27, 2018 – 6:10 PM
Outsourcer, CRM Software, Tech: Other
Top Executive: Ted Tsung
If a 6% minimum was the right constant cash percentage for a retail customer, why does Schwab have a 4% requirement for RIAs? Schwab says it is creating a minimum cash position to offset the expense of rebalancing and tax loss harvesting. Are institutional clients more expensive to rebalance than retail clients? These are automated processes that cost Schwab next to nothing.
Schwab calls cash one of the best defensive asset classes. That is true in a down market. That is not true in a rising market. Cash will be a drag on performance in positive markets. And, what are the odds more astute investors will be willing to pay fees to advisors on a fixed percentage of assets that reside in Schwab Bank. Advisors will be making less money before Schwab deducts 10 bps from the RIAs who have less than $100mm at Schwab.
How many revenue streams does Schwab want to derive from investors and advisors? This service is not investor or advisor friendly – too much spin, too many angles. But, since when did investors have to understand a product to buy it? The Schwab name and the word “free” may be enough to make the service a roaring success.