Exclusive coverage of Charles Schwab's IMPACT 2013 conference from November 10-13 in Washington, D.C.
Recruiting is very strong, it start off slow this year.
A lot of things came up as a result of
some of the extra activities last year with the fiscal
cliff and a lot of the uncertainty associated with that,
so the first quarter start off slow. Second and third
quarters have been just going getting [unk]. Year to date,
we're up 21 percent year over year from last year's
recruiting rate. One of the most exciting pieces today that
we have seen lately and that is just the incredible
growth of the smaller books of business and when I
say smaller books of business, think $50 million of assets
and lower, that's grown 48 percent year over year, so
it's growing disproportionate to the rest of the client base
in terms of number of advisers. There's a lot of,
you know, questions we've asked these advisers and you know,
what's making this more attractive to you, and it's interesting
a couple of things have emerged. First of all, they're
looking for platforms that offer them a great deal of
service at a very reasonable cost. They're not getting hit
with exorbitant fees and that's one of the things that
Schwab's platforms enabled them-- enables them to do. Second of
all, is they're looking for a firm that is able
to meet their view of what delivering service to their
clients means. They are predominantly younger. They have smaller books
of business because they haven't been in the industry that
long, but they are next year's growers. They are 5
and 10 years from now. They will be the innovators.
They will be the people that are delivering the advice
to the larger clients, and so we find them extraordinarily
valuable, and they all share one interesting commentary, and that
is their reliance on technology is tremendous. The way they
deliver advice is different. No longer do they have these
big offices where they walk in to the big wood
and marvel. What they have is communications via the phones
and the iPads and their-- and emails, and their websites.
That is critically important to the way they deliver advice
and how they serve their clients. We feel like we're
well positioned to be able to meet that need.