Now that the merger of the Charles Schwab Corp. and TD Ameritrade Holding Corp. is in the rearview mirror, Schwab is throwing more technology at the thousands of registered investment advisors who use the firm to custody close to $4 trillion in client assets.
Over Labor Day weekend, 3.6 million accounts held across 7,000 registered investment advisors finally moved from TD to Schwab Advisor Services, the most significant step toward completing the integration of Charles Schwab Corp.’s $22 billion acquisition.
More than a month and a half later, senior Schwab executives were stressing a variety of additions, from technology to fund managers, intended to give their advisors more ways to work with clients.
“We’ve really leaned into ease,” said Rick Wurster, president of Charles Schwab Corp. “We want to make your life as an advisor and your ability to serve your client, and make your client’s life, as easy as possible.”
Wurster was speaking Wednesday morning in Philadelphia at the annual Schwab Impact conference for registered investment advisors who custody client assets at the firm. He was part of the keynote presentation along with Walt Bettinger, the company’s CEO and co-chairman of the board, and Bernie Clark, managing director and head of advisor services at Schwab.
Wurster noted that the industry’s largest custodian recently added souped-up digital onboarding and e-signature specialist DocuSign Inc., and last year also created an institutional no-transaction-fee fund platform. Funds from T. Rowe Price Group Inc. were among the first added, but Schwab has recently included investments from American Funds Service Co. and Pimco.
Schwab Advisor Services is also currently wading into the potential applications of artificial intelligence, just as other large brokerage firms are. According to Bettinger, the firm is already testing applications of AI with some reps, but not pursuing it on advisory or managing money.
“The emphasis is on the ability to serve you better, delight you, delight your clients at this point, rather than anything that gets involved in managing money or [financial] advice,” Bettinger said. “The regulators have some grave concerns in that area, and we want to be cautious to the issues they have raised on the advice side.”
Meanwhile, Clark and Bettinger also addressed broad complaints — but not specifics — from some financial advisors about the impact of the integration of Schwab and TD Ameritrade. Particularly annoying for some advisors is the long wait to get answers at call and service centers to their questions about client accounts, according to advisors who spoke privately to InvestmentNews.
The conversion of the TD RIAs to Schwab’s custody business “was imperfect,” Bettinger said. “We all recognize that. But we’re continuing to work hard to address issues that you raise. I want to express my gratitude there.”
“It’s just the beginning,” Clark said. “We’ll continue to integrate more. Walt, you said it well. Things are imperfect sometimes. But if anybody in this room isn’t feeling listened to, or heard, about what’s going on, that’s a fatal flaw for us. We’re addressing issues that you’re bringing up already.”