Charles Schwab executives are responding to concerns that the firm's growing retail wealth management business could compete with the registered investment advisers that custody assets on the Schwab platform.
According to Wealth Management, Jon Beatty, Schwab's head of advisor services, addressed those concerns during a mid-year virtual press briefing. Beatty argued that significant growth opportunities remain available for both Schwab and independent advisors.
Wealth Management reports that Beatty emphasized Schwab's commitment to supporting its approximately 16,000 RIA clients through custodial services, investment solutions, banking products, and other advisor-focused resources. He also pointed to continued investor demand for fiduciary advice as a key driver of growth within the independent advisory industry.
At the same time, Schwab continues expanding Schwab Wealth Advisory, its full-service wealth management division serving retail investors. According to Wealth Management, the division currently operates in 20 markets and plans to expand into 10 additional markets this year.
A Schwab spokesperson explained that those wealth advisory offices operate separately from the firm's retail branch network. According to Wealth Management, the company also has expanded its retail footprint in recent years, announcing plans in 2025 to open 16 new branches and expand or relocate 25 additional locations. That retail division oversees approximately $771 billion in client assets and includes 2,120 financial consultants.
According to the spokesperson, Schwab established the local wealth advisory offices to strengthen collaboration between wealth advisors, branch consultants, and retail clients. Although advisors maintain a local presence, they continue conducting most client meetings virtually.
Beatty stated that Schwab consistently has remained transparent with RIAs regarding its retail wealth management operations, Wealth Management reports. He noted that Schwab Wealth Advisory has operated for more than a decade and primarily serves as a destination for clients referred by Schwab financial consultants. He also highlighted the firm's referral activity through the Schwab Advisor Network, which connects retail clients with independent RIAs.
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