Schwab’s latest move to shrink the eligible client pool for referrals sent to RIAs is expected to have a wide ripple effect on advisor growth and custodian strategies, industry recruiter Chris Bisenius tells InvestmentNews.
“A lot of [RIAs] started looking at how do we either build a new referral source or build a new lead channel, or what else do we need to do if Schwab's going to start to restrict the flows we're getting,” said Bisenius, president of Wisconsin-based advisor recruiting firm Windward Recruiting. “It just reduces the amount of flow. If it reduces the amount of lead going out all over to everybody, then everyone's fighting for less.”
A spokesperson for Schwab confirmed to InvestmentNews the asset minimum for client referrals in Schwab Advisor Network (SAN) has changed from $2 million to $5 million, effective Jan. 5, 2027. This second increase, first reported by Citywire, follows last year’s SAN referral minimum hike to $2 million from $500,000 as Schwab also grows its own internal advisor teams to serve investors.
“Today, more than half of SAN's net flows come from clients with $10 million or more in investable assets, reflecting growing demand for highly personalized advice and specialized expertise,” a Schwab spokesperson told InvestmentNews. “Increasing the referral minimum to $5 million aligns the program with where it is seeing the strongest growth and how clients are engaging with it today.”
Schwab Advisor Network has been running since 2002, competing alongside Fidelity’s Wealth Advisor Solutions (WAS) as the biggest custodian client referral programs for RIAs. Schwab told InvestmentNews in December 2025 that SAN participation levels generally fluctuate between 100 to 150 firms. “I think those who are on both [SAN and WAS] channels are probably reallocating over to Fidelity because it seems more stable,” said Bisenius.
“Schwab remains deeply committed to the independent advisor community and to the Schwab Advisor Network,” added the spokesperson from Schwab. “We will continue investing in SAN as an important part of how we help connect clients with specialized advice and independent fiduciary guidance.”
Lead generation marketplaces such as NerdWallet and SmartAsset could see an uptick in priority from advisors feeling squeezed by the SAN increase, says Bisenius.
Custodians such as Goldman Sachs and TradePMR by Robinhood have also debuted referral programs over the past year as added alternatives to Schwab Advisor Network.
“A lot of RIAs who see this as a threat, or have had challenges with Schwab already, this forces them to look at others. Do they start looking at SEI? Do they start looking at Goldman? Do they start looking at the lead flow through Robinhood?” says Bisenius. “Do more custodians start to pick up significant assets because of this move by Charles Schwab? I think it sounds like yes, from what we're hearing internally, that people are looking. They're getting frustrated.”
In a letter published earlier this month from Chuck Schwab, the company said it plans to hire “thousands more financial consultants” to serve retail investors across its 400 branches with plans to open more than 20 million client accounts in the next five years.
“We talk to a lot of Schwab advisors who are not happy because they're on a treadmill. They don't get to build deep relationships. They've got 30 minutes to talk to a client to do as much as they can and then they've got to jump off that call to handle the next,” said Bisenius.
Gabriel Shahin, CEO of California-based RIA Falcon Wealth Planning, agreed that Schwab is further positioning itself as a competitor for investor assets. Per its latest Form ADV filing dated June 11, 2026, Falcon Wealth Planning manages approximately $1.92 billion in client assets, with Fidelity and Charles Schwab as its main custodians.
“Well, it’s very clear. They’re looking to dabble in the RIA business. They have pilot branches offering financial planning services,” said Shahin. “And I get it, but this could hurt their RIA custodial business if they feel that they are going to be hunting their clients. It’s already scary to have your clients walk into a Charles Schwab branch to deposit a check because those reps see a fish in water."
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