Schwab sees dollar signs flowing from wirehouse refugees

While new assets heading into The Charles Schwab Corp.'s adviser business slowed in the first quarter, executives for the San Francisco-based company noted that they've had contact with hundreds of advisers —with billions in assets — who are considering going independent. The pipeline for new business in its adviser services unit is quite full at the moment, as a growing number of advisers and registered representatives are looking to depart wirehouses, Jim McCool, executive vice president of Schwab's Institutional Services, said in a conference call today. Specifically, the San Francisco-based company is talking to roughly 400 advisers who are thinking about going independent, Bernie Clark, senior vice president in Schwab's institutional business said on the call. Combined, these advisers have "well more than $30 billion" in assets, Mr. Clark added. Schwab's adviser services business added roughly $10 billion in net new assets during the first quarter, a 52% decline from the same time one year ago. Mr. McCool pointed out that $3 billion of these assets came from 38 new registered investment advisory firms that Schwab attracted during the first three months of the year. That compares with just 21 new firms that Schwab's adviser services businesses drew in the first quarter 2008.