How Will Schwab’s USAA Deal Affect Advisors?
July 26, 2019 By Janet Levaux, ThinkAdvisor Charles Schwab confirmed its expected plan to buy the brokerage and managed portfolio accounts of USAA Investment Management Company late Thursday. The $1.8 billion deal includes a referral agreement could add 1 million new accounts and about $90 billion in client assets to Schwab’s $1.9 trillion Investor Services business. The transaction comes just a few months after Schwab rolled out a subscription service for DIY investors and only a couple of days after TD Ameritrade CEO Tim Hockey announced his departure. What does it mean for Schwab’s affiliated advisors, who work with $1.8 trillion of the firm’s $3.7 trillion in total assets, and its rivals? Not much, top industry observers say. “This is a savvy retail business acquisition for Schwab, with a limited threat to financial advisors …,” said Chip Roame, head of...