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After cutting 401(k) middlemen out backfires, Schwab cuts them back in

The problem for Walt Bettinger's newfangled Index Advantage DC plans was that for three years only $10 billion of assets showed up in an atmosphere of self-direction

Author Lisa Shidler August 6, 2015 at 5:17 PM
Admin:
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Louis Harvey: They assumed that a market existed, but then discovered what many have known for years -- 401(k) plans need a very personal sales effort.

Stephen Winks

Stephen Winks

August 7, 2015 — 4:46 PM

There is no substitute for the advisor, yet the point being missed is professional standing. The consumer and advisor may not be discerning enough to appreciate the early steps in financial services innovation which might be contrary to convention yet illustrates what fiduciary duty (professional standing) actually looks like. A small number of leading advisors are early adopters leading the way. Overtime an early majority will emerge because it is in the best interest of the investing public, while those that lag irrefutably lose market share.

SCW

Attila Ishung

Attila Ishung

August 10, 2015 — 1:52 PM

Mr Wink’s agenda is clear: Pass the DOL rule as written, Professional standing is the wave of the “early majority” and those not on his band wagon will lose market share. Now, one must ask: What is an “early majority” and does it involve copious amounts of good scotch?


Related Moves

Joanna Rotenberg is departing Fidelity Investments after only two years, writing that she traveled 20,000 miles and successfully split her retail division into wealth and brokerage units

At her hire, analysts were adamant the head of Fidelity retail had 'big shoes to fill' to replace legendary Kathleen Murphy and her task of 'digitiizing' retail was no small ask

December 16, 2023 at 2:22 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

Fidelity Investments loses Kathleen Murphy who largely caught up Fido to Schwab (near $4T) on the retail side by reversing net promoter scores

The 'no whining allowed' leader of the Boston giant's retail business, who oversaw $2 trillion in net new assets, was ready to exit but hung in through a year dominated by COVID-19 challenges

January 23, 2021 at 2:02 AM

See more related moves

Mentioned in this article:

Pension Resource Institute, LLC
Compliance Expert
Top Executive: Jason C. Roberts

Retirement Law Group, PC

Top Executive: Jason C. Roberts



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