It’s Finally Here
Reports that Charles Schwab planned to swoop in and buy rival TD Ameritrade started making headlines on Nov. 20, 2019, and that’s when the news team atThinkAdvisor and Investment Advisor started covering thedevelopments.
Official confirmation of the deal didn’t happen until Nov.25, and by then, the RIA community was in full conversationabout what the estimated $26 billion transaction would mean.
It’s been a long year sincethen, and for many RIAsthe impact of the deal hasonly just begun to be felt.On Oct. 6, 2020, Schwabsaid another 18-36 monthswere needed to combinethe technology and operations of the newly combined entity.
We highlight the ins andouts of the deal over thepast 12 months — and thishistory behind it — in thismonth’s cover story. Ourextensive timeline chronicles the many developments that laid the seeds of the mammoth acquisition.
We also present author and RIA Creative Planning PresidentPeter Mallouk’s views on what it means for the industry, alongwith insights from former columnist and head of BNY MellonPershing’s Advisor Solutions unit Mark Tibergien.“This willbe an interesting decade for transformation in the business,”Tibergien says.
While the cover story focuses on the behemoths in the
advisor space, Tim Welsh’s Industry Insights contribution
this month zooms in on what’s happening at the ground
level. As usual, he offers an interesting look at the dynamics
of the RIA field and some of the positive trends affecting
smaller advisory firms.
“Despite the purchase of small-advisor friendly TDAmeritrade, there are many advancements in technologyand new service model choices, making the opportunities forsmaller advisors never better,” Welsh explains.
In addition, columnist and consultant Angie Herbers tackles
growth strategies for RIAs in the face of growing competition
and consolidation. “The
future of the space will be
determined by how well
leaders are able to balance
multiple areas to grow their
firms,” she writes.
Meanwhile, we’re pleased
to share the latest think-
ing of portfolio expert Bob
Rodriguez, who used to lead
First Pacific Advisors, and
the story of RBC Wealth
Management’s Ann Senne
has been pushing to help
the broker-dealer trans-
form itself into a “digitally
enabled” investment advisory business.
At a tumultuous time in the industry — and in the country,
we wish you a safe and sound autumn and Thanksgiving. We
also thank you for your continued support of this publication.
Please send any news and views to email@example.com.
“Despite the purchase of small-
advisor friendly TD Ameritrade
[by Schwab], there are many
advancements in technology
and new service model choices,
making the opportunities for
smaller advisors never better,”
Tim Welsh explains.
By Janet Levaux