Charles Schwab is launching a new program aimed at helping financial advisors go independent and quickly grow their RIA firms.
Schwab Advisor ProDirect, enrolling members starting in July, is designed for "fiercely independent," growth-minded advisors who want their own name on the door and are open to coaching, Shawnette Gauer, managing director, Charles Schwab Advisor Services, told reporters as the company announced the program.
“For more than 35 years, Schwab has helped thousands of advisors move to independence,” Brad Losson, Schwab Advisor Services' enterprise solutions head, said in the announcement.
“With client demands evolving rapidly, many advisors see the RIA model as their best path forward, but they face a complex array of choices for every aspect of their business," he added. "That complexity can hold them back. Schwab Advisor ProDirect is our answer: a program built to ease their journey, optimize their operations, and help them thrive over the long term."
The fee-based membership program is designed for advisors moving to the RIA model, typically with $50 million to $300 million in client assets, which Schwab considers an underserved market population. It is complementary to, but distinct from, Schwab Advisor Services’ existing onboarding and custody services, which remain unchanged for all clients, the company said.
Advisors joining the program will participate in a structured, four-phase approach to developing their firms:
- Phase I - Launch: High-touch help to streamline business and operations planning as they go independent
- Phase II - Learn: Dedicated Schwab consultants bring expertise, focus and ongoing mutual accountability to the relationship
- Phase III - Connect: Membership in a community of growth-focused peers plus curated solutions from Schwab and third-party providers
- Phase IV - Grow: Continuous coaching and support to implement the Guiding Principles for Advisory Firm Success, developed through nearly 20 years of learnings from Schwab’s RIA Benchmarking Study research.
Membership will cost $5,250 per quarter or $21,000 annually, with one-year initial membership, renewable quarterly thereafter. Schwab sees the program as "evergreen," one advisors need not graduate from, said Gauer. Participating advisors will run their own Form ADV registration with the Securities and Exchange Commission, she said.
"This program provides firms with the support needed to help elevate their strategy, brand, and client experience from day one," she said in a statement.
The program seeks to help advisors accelerate firm growth, according to Gauer, who likened it to a gym member who signs up for a personal trainer to achieve their desired results more quickly.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.