Schwab completes purchase ofTD Ameritrade for $22 billion;the full integration of the twofirms, though, should take 18–36months; its new headquarterswill move from San Francisco toWestlake, Texas, on Jan. 1, 2021.
Robinhood says its June results, at 4. 3million daily average revenue trades,surpass those of its publicly traded rivals.
Schwab wraps up purchase ofMotif Investing’s technology andintellectual property; also introducedan online resource center to helpRIAs hire next-gen and other staff.
Dani Fava, head of innovationfor TD Ameritrade Institutional,departs (and later joins Envestnet).
Oct. 6. Aug. 10 June 24
Schwab says TD AmeritradeInstitutional President Tom Nally andseven other TD Ameritrade executiveswill leave the firm; Schwab plans tohave the 19-member Schwab ExecutiveCouncil lead the combined entity.
Schwab rolls out a free self-guideddigital financial planning tool forinvestors and financial planning hub.
Federal Reserve approves Schwabacquisition of TD Ameritrade.
Morgan Stanley wrapsup purchase of E-Trade.
Skip Schweiss, TD AmeritradeInstitutional’s managing directorof Retirement Plan Solutions andAdvisor Advocacy, leaves the firm.
philanthropy, tax planning and helping people navigate [life]choices,” he added.
Overall, the total RIA industry doesn’t control the majority
of the wealth-management industry’s assets, “though the phi-
losophy of the RIA is very compelling,” the popular industry
speaker points out. “The big brokerage firms, independent
contractor firms and banks, that’s where the majority of
assets are held.”
This prompts the question:
“Over the next generation, as
we see boomers retire and pass
away, how will the new accu-
mulators and inheritors begin
thinking about their relation-
ships with their financial profes-
sional, and how will they adapt
to that?” Tibergien asked.
His answer: “It’s just going to cause a different focus
on the client experience — rather than on the investment
experience — around planning.”
As for a dominant player emerging in the fiduciary busi-
ness, one might appear on a national, regional or local scale.
“The theory in business is that if you are one of the top threefirms in a market, you’re going to get twice as many opportunities to do business as the No. 4 firm,” he said.
Most RIAs today are small businesses. As they consolidate,maybe some will “consciously move towards creating anidentity and a branded system .. and become recognized asone of top three firms in a market,” Tibergien explained.
If you ask the average person to name one of the three
financial services firms, you might hear Merrill Lynch or
JPMorgan Chase. But the real question “is whether a fiduciary
business can establish their brand in a similar way, and I think
there’s an opportunity to do that,” he said.
Might Schwab, which operates as a broker-dealer and has astrong national retail presence, pivot? While the idea is “verycompelling,” explained Tibergien, “I don’t know whether theywill ever change their approach to a more fiduciary model.
But in terms of brand presence, they’re clearly formidable,
and that’s something every advi-
sor has to think about when
When a firm creates a brand,
it has “to create a differen-
tiator — a me-too strategy is
not going to work,” he added.
“People get too consumed by
the nuts and bolts and not by
the way people feel,” Tibergien
said. It’s worth considering “the mindset of the client and to
what extent your business … values all your stakeholders, not
just your shareholders.
“How you understand the emotional side as well as thefinancial side of [a client like] me. How you position yourselfin helping me navigate through life choices — such as deciding to take on a board position and these kinds of things —[RIAs should] really think about that,” he suggested.
“This will be an interesting decade for transformation inthe business,” Tibergien said. “We’re going to see some newplayers emerge — both from the pandemic and from generalchanges in demographics, economics, how we function as acountry and the way in which people make money. All thesechanges are opportunities [for an RIA] to change things a bitand become a noticeable business.” — Janet Levaux
“I don’t know whether
[Schwab] will ever
change their approach to
a more fiduciary model.”