Schwab launches program to boost diversity in RIA industry

Initiative will help educate advisers about recruiting women, young people and minorities.
NOV 06, 2014
One of the big messages at this week's Schwab Impact conference is helping advisers change the culture and face of the registered investment adviser industry. As part of this effort, Schwab is launching “RIA Take Advantage,” a multi-faceted initiative to help advisers and industry leaders develop tactics to diversify their workforces. The initiative will include an online community of advisory firms that will educate advisers on how to be more inclusive in recruiting practices. “As the face of the investor changes, we believe greater diversity will be critical in driving RIA growth and sustaining success for the long term,” said Neesha Hathi, senior vice president, who co-leads the diversity effort at Schwab. The program will focus on three aspects of adviser talent and investor segments: generation “now' (investors between the ages of 30-45), ethnic diversity and women. The underrepresentation of women in leadership roles and client-facing positions continues to be industrywide issue and Ms. Hathi said gender imbalance in senior adviser positions has hampered firms from expanding their female client base. “If you don't have women in leadership roles, you aren't going to evolve your culture and be attractive to women investors,” Ms. Hathi said. In 2012, Schwab launched a Women's Advisory Council to examine steps that firms could take to increase the presence of women in executive positions. “We are now adding emphasis and additional structure to our effort to help advisers better understand the business opportunity and to cultivate female employees for leadership and ownership roles,” said Mary Rosai, senior vice president and head of marketing for Schwab Advisor Services.

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