Our role, says Charles Goldman, is to "provide safety and soundness of clients' assets" for the advisors who custody those assets at Schwab Institutional (SI). Speaking on September 25, Goldman, the executive VP who runs Schwab Institutional and oversees its 3,500 employees, said that beyond being "safekeepers" for Schwab's retail, corporate, and RIA assets, the custodial arm of Charles Schwab is "focused on serving RIAs and helping them grow their business; if we do, they'll be rewarded, and we will, too." Noting that $10 billion in net new assets were brought to SI in 2007 from advisors turning independent--aka, breakaway brokers--"this year, we've beaten that already," and Goldman expects to see continued "very significant growth" from that segment of brokers with an entrepreneurial streak. The average broker coming over has $100 million in assets, he said, joining the 5,700 RIAs who already custody at SI. In the aftermath of the crisis, Goldman expects the regulatory environment to "change dramatically," though he would think it "unfortunate" if broker/dealer regulation in the form of FINRA compliance is applied to RIAs, which are "so distinct."
Access complimentary resources from Cambridge Investments to help navigate the fiduciary rule changes.
If you’re thinking of changing broker-dealers, you owe it to yourself to read this article that covers all major aspects of the transition process.
This White Paper outlines the immediate actions firms can take to correct outdated and costly supervision procedures.
Sep 27, 2016
Some broker-dealers have already decided to exit certain lines of business and are sizing up how the rule will impact their IT and compliance budgets....
Sep 20, 2016
This webcast will review the key aspects of the amendments and the steps that funds and intermediaries can take in order to comply with the...
Sep 13, 2016
Nationwide is providing a deeper look into the rule’s implications and a discussion of decisions firms will need to make in order to comply.