The new entity aims to “capitalize on the unique opportunity to build a firm with the soul of a challenger and the resources of a large financial services institution,” Schwab Presidentand CEO Walt Bettinger said in a statement a year ago.
“A new chapter for me…best of luck to my colleagues at
Evolving RIA Matters
TDAmeritrade,” Hockey said on Twitter at the time. “Life is
like a bike trip. There are many twists and turns. The idea is
to enjoy the ride…and as Einstein said, you only stay upright if
you keep moving forward!”
Summing up what many advisors and industry watchers
were thinking a year ago, RIA George Papadopoulas explained
in a tweet: “Let’s face it, Schwab is a hell of a competitor! They
managed to flat out corner TD Ameritrade, whose executive
team could not manage to transition the company away from
relying so much on trading commissions. And then they went
for the kill!”
Just a few weeks after Schwab announced the deal, it hiredformer-TD Ameritrade executive Bradley to lead AdvisorServices to oversee custodial services for RIAs with up to $100million in assets and to help integrate the two firms’ advisor-services businesses.
“Woa. BIG industry news! Schwab hiring former TDA
Institutional pioneer Tom Bradley to lead its “Core” <$100M
AUM segment,” said popular blogger and planner Michael
Kitces on Twitter last December. “Should be a big relief for
small RIAs fearing Schwab will abandon them. (Unclear how
far below $100M Schwab will go, though?).”
Kitces continued: “For “smaller” (<$100M) RIAs that have
been fearful that Schwab would shut the door on them after
the #Schwabitrade merger closed, this should be a huge relief.
Schwab isn’t hiring @TomBradley_USA to abandon small
RIAs. It’s hiring Bradley to build with small RIAs.”
Bradley spent three decades at TD Ameritrade, including
about five years as president of the firm’s Retail Distribution
unit and 12 years as head of its Institutional business.
“We’ve known Tom personally for years, and have longadmired his successful track record working across the investment services community,” said Bernie Clark, head of SchwabAdvisor Services, in a statement at the time.
Bradley now reports to Clark and is based at Schwab’scampus and soon-to-be headquarters in Westlake, Texas (nearDallas). “There couldn’t be a more exciting time to joinSchwab,” he said when his hiring was announced.
“I cannot emphasize enough how encouraging this newsshould be for the smaller/younger financial advisor crowd.Tom Bradley is a wonderful guy, cares deeply about the futureof this profession,” tweeted Ritholtz Wealth Management CEOJosh Brown a year ago.
Still, the new role won’t be a walk in the park, cautioned
Tim Welsh of the consultancy Nexus Strategy: “The challenge
for him with this new gig will be that small RIAs will not be a
priority for the overall custody business, simply because of the
lack of potential for monetizing small accounts.”
In fact, being able to make the business case for more
resources to support this segment might fall on deaf ears,
thus creating frustration and potential backlash, according to
Welsh. “But if anyone can do it, it is Tom Bradley!” he added.
Schwab insisted at the time that it’s been working hard onservices for RIAs with under $100 million in client assets.These efforts include virtual business consulting, onlineevents, an almost 50% cut in pricing for electronically tradedtransaction-fee mutual funds and Portfolio Connect, a free
Bank of American buysSchwab for $55 million.
Ameritrade Clearing is formedto provide clearing services forbroker-dealers and RIAs.
Schwab management buys back thefirm for $280 million, goes public androlls out Financial Advisors Service.
Schwab is the first discountbroker to have its own backoffice settlement system.1979
TD Bank/Green Line buys GardinerGroup Stockbrokers of Canada.
Schwab’s Financial AdvisorsService tops $1 billion in assets.1988
Ameritrade launches automatedtrades via touch tone phones.
Schwab begins its phone-basedbrokerage service.
Schwab starts 24-hour quotation service.
Schwab joins NYSE.1981
Schwab is first to offer 24/7order entry and quote service.
Schwab launches 140no-load mutual funds.1984
TD Bank founds discount brokerGreen Line Investor Services.
Schwab lets clients place buy or sellorders for mutual funds 24/7.1986