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.
APR 30, 2009
By  Mark Bruno
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.

Latest News

Investor anxiety hits six-year high amid market turmoil, Allianz finds
Investor anxiety hits six-year high amid market turmoil, Allianz finds

New survey reveals heightened investor concern over market volatility, retirement readiness, and the impact of tariffs on living costs.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

RIA moves: The Mather Group, Brand Asset Management announce deals
RIA moves: The Mather Group, Brand Asset Management announce deals

Consolidation continues in US wealth management industry.

US broker-dealer fintech aims for global footprint as it acquires international firm
US broker-dealer fintech aims for global footprint as it acquires international firm

Tech company democratizes access to US trading infrastructure.

Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel
Advisor moves: RBC swipes $1.7B UBS team, Baird duo departs for LPL's Linsco channel

RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.