Charles Schwab has increased the minimum assets under management (AUM) required for independent investment advisers participating in its Schwab Advisor Network client referral program to $500 million, up from $250 million. According to ThinkAdvisor, the change follows a separate announcement two months earlier that Schwab would raise the minimum asset level for investor clients using the referral program to $2 million from $500,000, effective January 1, 2026.
Schwab disclosed the higher AUM requirement for registered investment advisers in a Schwab Advisor Network brochure and a recent regulatory filing. A Schwab spokesperson told ThinkAdvisor that the new threshold took effect earlier this year and does not affect firms already enrolled in the program or alter the total number of participating firms.
Approximately 140 firms participate in the Schwab Advisor Network, according to ThinkAdvisor, which reported in February that Schwab raised fees for participating advisors by 5 percent. Before that increase, advisors paid referral fees on a tiered basis: 25 basis points on the first $2 million in referred assets, 20 basis points on the next $3 million, 15 basis points on the next $5 million, and 15 basis points on assets above $10 million. Advisors must also pay a one-time program transfer fee if referred assets later move out of custody from Schwab's platform.
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