News, Vision & Voice for the Advisory Community


Envestnet will roll out RIA custody by 2024, disputing Bernie Clark's lean Schwab profit math, by citing average 15-basis-point margins

The Berwyn, Pa. company says Schwab's own public disclosures Clark's 'nine basis point' claims, though Envestnet will likely need to hand over as much as half the take to FNZ, a competitor says

Author Lisa Shidler May 13, 2023 at 1:03 AM
no description available
Bill Crager: 'All economics related to custody average around 15 basis points.'
Brooke Southall and Keith Girard contributed to the editing of this article.

Related Moves

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

Another RIA whisperer, Julian Lopez, has left Schwab Advisor Services after 24 years to join LPL, which he sees as more advisor-focused and 'entrepreneurial'

The Houston executive, like Kelly Smith in Chicago, was considered a key service talent for RIAs though Lopez says his circumstances differ.

February 23, 2023 at 8:14 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

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

See more related moves

Mentioned in this article:

Envestnet Inc
Top Executive: Jud Bergman

Brian Murphy

Brian Murphy

May 13, 2023 — 5:18 PM
I think this article suggests the inconvenient truth about the advisory industry that we would all benefit from by pondering. If Envestnet is willing to make a significant bet on custody at a payoff of roughly15bps, what does that say about their core business & prospects in selling technology to RIAs? They made a major bet on Yodlee and still can't make this turn it into anything after what, 5-7 years? Either the team at Envestnet are a bunch of bumbling idiots, or maybe there's no "there" there when it comes to targeting the B2B advisor space. I would suggest that the B2B model in financial services only works for the largest players (Schwab, Fidelity, etc.) when supplemented with a B2C business. Build the B2C first, then tack on B2B as a secondary series of offerings. Why would Envestnet expect to win anything in the advisor custody space? I mean seriously. Perhaps all these B2B startups targeting the multi-billion $ advisory industry would benefit from using Envestnet as a case study before launching also-ran technology offerings - whether it be tax-loss harvesting software, white labeled robo-advisors, trade management software, etc. The advisor pie is actually much smaller than most suspect. The best thing Envestnet could do given their current position in the industry, is fund an external B2C investment advisory organization that grows to compete with the big boys using Envestnet's myriad of technology. Rethink the industry from the ground up and allow your investee to build out next generation "over the top" advisory business that leverages assets such as Yodlee. Envestnet would get a bird's eye view of where the economics lie by actually managing money.

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo