Schwab Promises New Advisory Offices Won't Compete With Their Existing RIA Affiliates Hot
Schwab promises that the offices won't compete directly with the firm's existing independent RIA affiliates because they will focus on lower-level products and services.
However, from a strategic point of view, the story will need to be backed up with some serious details.
Sure, the new offices may only handle basic planning functions -- the kind of thing that could practically be handled by Schwab's existing self-directed brokerage branches -- but even this has the potential to cannibalize the bread-and-butter business of the firm's independent RIAs.
Furthermore, why not simply refer clients who need a little more than what the self-directed branches can offer to the existing affiliates? Presumably, there are plenty of advisors on the Schwab platform who wouldn't mind adding a little mass affluent business to their books.
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