Access to Advisors: 6.5
9. Schwab
Financial Planning: 12.00
Transparency and Conflicts: 8.00
Features: 4.7
Customer Experience: 9.1
Asset Minimum: 2.40
Size and Tenure: 2.00
Costs: 11.27
Performance: 13.46
TOTAL: 69.43
(Image: Shutterstock)
Charles Schwab is raising the client asset minimum to $2 million from $500,000 for referral to an RIA in its Schwab Advisor Network, effective Jan. 1, a company spokesperson confirmed Friday.
The SAN program refers clients with the required assets to pre-screened independent advisors for comprehensive wealth management, financial planning and fee-based fiduciary advice.
The Schwab Advisor Network "has been running since 2002, continues to experience healthy growth in assets, and is an important component of how we serve investors. As we always have, we will continue to evolve and enhance the program to ensure it's positioned to meet the increasing wealth and advice needs of our clients," a Schwab spokesperson said by email.
"This new minimum, effective January 2026, will better align client referrals with the asset levels and specialized needs that are served through the SAN program," the spokesperson said.
CityWire reported on the change Thursday.
Schwab has sought to appeal to wealthy retail clients in recent months, rolling out an alternative investment platform in April for investors with at least $5 million.
Significant flows that previously would have gone to advisors will now probably stay in-house, Nexus Strategy President Tim Welsh, a former director at Schwab Advisor Services, told ThinkAdvisor in an interview.
While major RIAs already focused on high-net-worth clients will do even better with the change, Welsh said, those with clients in the lower tiers may see their SAN flows go to zero and find themselves eliminated from the program, either voluntarily or by Schwab, he said.
Around 140 firms participate in the referral program, ThinkAdvisor reported in February.
Firms that have built their entire business on referral programs could see their valuations cut in half, Welsh said.
Schwab has slowly added limitations to the referral program, he said, pointing to a 5% fee increase announced in February.
The move says a lot about where the industry is going, one advisor posted on LinkedIn.
"By lifting the minimum, Schwab effectively keeps the sub-$2 million segment in-house — assets that used to flow to independent RIAs through referrals. In other words, it’s not just a service adjustment; it’s a structural shift," 9i Capital Group founder Kevin Thompson said.
"This is a reminder for independent advisors: custodians are evolving into direct competitors. Building your own client relationships — and your own brand — has never been more important."
Image: Shutterstock
© 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.