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Has Schwab Won the RIA War?

19:53 10 June in In the News by rafferty

June 10, 2020 By Janet Levaux, ThinkAdvisor Consolidation is everywhere, but new options for RIAs are rapidly emerging, Joel Bruckenstein and others say. Charles Schwab received lots of good news last week, with the Justice Department and shareholders approving its $26 billion merger with rival TD Ameritrade. The firms, which collectively work with more than 10,000 RIAs and $5 trillion, should come together by year-end. The technology and related integration, though, requires 18 to 36 months. The industry was “pretty much expecting this outcome, so it’s not a big surprise to anyone,” said Tim Welsh, head of the consultancy Nexus Strategy. “However, it does remove uncertainty, so we expect to see RIAs affiliated with TD Ameritrade ramp up their search and inquiries for a new custodian, particularly smaller firms who fear a lower service level and...

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Schwab-TD Ameritrade Deal Is No Sure Thing

21:20 21 November in In the News by rafferty

November 21, 2019 By Janet Levaux, ThinkAdvisor A merger of the two larger brokerage firms faces antitrust and other hurdles, according to some key industry watchers. Charles Schwab’s reported move to purchase TD Ameritrade for $26 billion, reported early Thursday, is the talk of the industry and shouldn’t come as a surprise, industry watchers and advisors say. “It’s big news, as yet another example of the massive consolidation taking place in financial services,” said Vance Barse, wealth strategist and founder of the firm Your Dedicated Fiduciary. But don’t bet on the merger just yet, some say. “There are some potential antitrust issues,” according to Joel Bruckenstein, a certified financial planner and head of T3 Technology Hub. “These two firms have been fierce competitors for years on the advisor and consumer side. Will there still be sufficient...

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Schwab to Buy TD Ameritrade for $26B: Report

17:30 21 November in In the News by rafferty

November 21, 2019 By Janet Levaux, ThinkAdvisor The move comes amid pressure on revenues caused by October's race to zero commissions Charles Schwab is set to buy TD Ameritrade for $26 billion, which could create a firm with some $5 trillion in client assets, according to a report from Fox Business. The move comes as the brokerage business has been racing to cut commissions to zero — which both firms moved to do last month. It also comes on the heels of Schwab’s plan, announced in July, to spend $1.8 billion on USAA’s brokerage and managed portfolio accounts, which have some $90 billion in client assets. Schwab, which has about $3.7 trillion in assets, and TD Ameritrade did not respond to requests for comment. Since the pricing pressures started in early October, TD Ameritrade’s stock price had...