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Schwab upends traditional 'basis point fees' for RIA recruitment and pushes the headhunters to negotiate with advisors for a cut of soft-dollars

The custodian to 10,000 RIAs follows a like move by Fidelity to bring RIAs into the loop on how much recruiters are paid and who pays what amount

Author Lisa Shidler March 3, 2021 at 3:42 AM
Admin:
no description available
Mindy Diamond: There are instances where firms increase it to 8%. Does that extra incentive make us send them more leads? Absolutely not.

Related Moves

As Bob Oros-led HighTower reboots, it bags an ex-Goldman RIA, hires two, makes a CMO imminent, and clarifies mission

The new CEO will need to somehow weave together the debris of the first roll-up run and the new one to the satisfaction of RIAs and the hundreds of people already inside the HighTower umbrella

March 20, 2019 at 11:32 PM


Mentioned in this article:

MarketCounsel | HamburgerLaw
Compliance Expert, RIA Set-up Firm, Regulatory Consultant
Top Executive: Brian Hamburger

Finetooth Consulting
Consulting Firm
Top Executive: Ryan Shanks

Diamond Consultants
Recruiter
Top Executive: Mindy Diamond

FA Match
Consulting Firm, Specialized Breakaway Service, Recruiter
Top Executive: Ryan Shanks




Intrepid

Intrepid

March 3, 2021 — 7:06 PM
The Diamonds are lying through their teeth, and it is shameful. Recruiters do NOT represent the advisors, they represent who pays them, which is either the firms or the custodians. That this publication did not challenge those silly statements is also abhorrent. Anyone who has ever bought or sold real estate knows exactly how this works. The seller pays the real estate commission, and the brokers represent him unless documentation to the contrary is SIGNED. The buyer's "agent" will help the buyer with the process, but their first loyalty is to the party who PAYS them.
Jeff Spears

Jeff Spears

March 3, 2021 — 7:24 PM
With fee compression continuing this will not be the last cut. Custodians charge for client introductions and my guess is soft dollar budgets are next. We should ask Robinhood if they are concerned about soft dollar payments. Now clients in the hedge fund and broker dealer world are starting to pay attention. Unfortunately there are several remaining items that can be reduced.
Tim White

Tim White

March 4, 2021 — 12:31 AM
Hopefully, Schwab has all the business it wants. What recruiter is going to tell their story?
Left the industry

Left the industry

July 24, 2021 — 5:25 PM
Yuck yuck yuck

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