Schwab turns page, changes decades-old name of RIA

The firm rebranded its registered investment adviser, formerly known as Schwab Private Client Investment Advisory Inc., as Schwab Wealth Advisory Inc.

After 20 years, Charles Schwab & Co. Inc. is dropping the name of its $146 billion registered investment adviser, Schwab Private Client Investment Advisory Inc., and opting for the less lengthy — and perhaps less stuffy — Schwab Wealth Advisory Inc.

Charles Schwab announced the moniker flip last month. The RIA had a client group of 70,000 households at the end of last year. In the press release, Charles Schwab said the RIA’s focus has been “to provide investors with deep experience in investment management, dedicated service, and value.”

Schwab doesn’t disclose the number of financial advisers who are employed at Schwab Wealth Advisory.

Schwab Private Client Investment Advisory opened in 2002, according to the company.

It’s an appropriate time for a fresh start, one industry observer said.

“The new name, Schwab Wealth Advisory, sounds more current but it also sounds more inclusive,” said Suzanne Siracuse, an industry consultant and former publisher and CEO of InvestmentNews. “The term ‘private client’ sounds a little stuffy and dated. It gives the impression that the RIA and the service is only for an elite, specialized group.”

“It’s a smart move for Schwab to think broader, bigger picture about this part of wealth management,” Siracuse added.

The average household in the newly named Schwab Wealth Advisory has more $2 million with the RIA, the company said.

“The name change we recently announced is intended to better reflect the depth of wealth advisory experience and dedicated service Schwab Private Client, now Schwab Wealth Advisory, delivers to clients,” a spokesperson wrote in an email. “There is no change to the offer itself or the client experience as part of the new branding. Schwab Wealth Advisory continues to be a non-discretionary service, and the minimum to participate is $1 million in assets.”

Charles Schwab is a leading custodian for investment advisers and works with thousands of independent financial advisers.

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