Page 44 - Investment Advisor December 2022/January 2023

RIA LESSONS & LEADERS

they “come into this industry.” as a borrowing source … and we’re com- TD AMERITRADE INTEGRATION
Clark noted that the two of them mitted to that.” Charles Schwab intends to complete
were presenting an optimistic future Echoing him, Rick Wurster, presi- the conversion of TD Ameritrade onto
for the sector and said, “we have to dent of Charles Schwab, pointed out Schwab’s platform over the Labor
collectively make sure that the next that “about 2% of our Advisor Services Day weekend of 2023, Tom Bradley,
generation hears it. This is a differ- clients come to us for a loan and … we managing director of Schwab Advisor
ent industry than you might see in the know clients would like to take more Services, explained during an online
movie theaters, about what finance is loans with us because we have some briefing with reporters just ahead of
and a big opportunity to be a fiduciary of the industry leading rates” and Schwab Impact.
and to help people … with their lives [is] also “would keep you from having to Schwab completed its $22 bil-
so critically important.” introduce another relationship into lion acquisition of TD Ameritrade in
the client relationship.” October 2020, forming a brokerage
LOAN OPTIONS FOR CLIENTS There are “a few things we’re focused firm with over $6 trillion in client
The Charles Schwab-TD Ameritrade on,” Wurster said. “I would say, in the assets. “I think the integration is going
platform conversion was to be very beneficial to the
another focus of company “We’ve been talking about people in this room and to
executives who spoke on the our company,” Wurster said
final day of Schwab Impact, lending and, quite honestly, Wednesday.
when the firm disclosed that One reason, he said, is that
it’s looking to provide its the liability side of the balance it “brings us scale and what
own loan options for clients. does scale provide that’s a
“We’ve been talking about sheet for quite some time.” benefit to you? No. 1 is our
lending and, quite honestly, commitment to not having
the liability side of the bal- —Bernie Clark custody fees.” Wurster also
ance sheet for quite some thinks that the combined
time,” according to Bernie Clark, man- near term, the next one to two years, capabilities of the platforms of the No.
aging director, head of Advisor Services our focus is on making it easier to con- 1 and No. 2 custodians are going to be
at Charles Schwab. sume our existing products. So whether “really powerful,” he said, pointing as
“It’s one of the most difficult things it’s a pledged asset line or a mortgage, examples to the iRebal portfolio rebal-
you do when your client has a need and we want to make it easier through our ancing tool and Thinkpipes trading
you have to go find a solution, perhaps relationship model,” he explained. platform that are being integrated into
with a competitor, perhaps someone “That’s our near-term focus, and we Schwab’s platform.
who’s going to try and entice asset man- hope that will drive value for you and Wurster added: “You can count on
agement into their shop as well,” he your clients.” the scale and the enhanced capabilities
explained. Therefore, “we’ve wanted to But Wurster added: “As we look at coming out of this integration, making it
grow that capability more and more, [the] longer term … we do want to look an even better time to be a custody client
and we’ve made some fabulous advance- at what we can do to help you in the here at Schwab.”
ments with our bank, but we have lots more esoteric loan spaces, whether it’s With the transition to the integrated
more to do.” unsecured loans or loans against more Schwab platform, “our objective is to
Schwab has found success on the esoteric collateral.” make sure we make that as easy for
mortgage front through a partnership Further explaining Schwab’s goal, your clients as possible,” Clark said.
with Rocket Mortgage, he noted. “But Wurster said: “We want to take a look But he conceded it “won’t be perfect
we need something more sophisticated at how we could be helpful to you there … . We all know that this is a big
for many of you,” he admitted. “I know because if we can help you cement move.” Schwab intends to make sure
you’re taking advantage of that [Rocket] that relationship, maybe not intro- that everybody is “very well prepared
offering and I’m glad that’s working well duce someone else into that relation- to transition” over the 2023 Labor Day
for you. We have to get something more ship that you might not want there, weekend, he added.
sophisticated in the marketplace that we think we can expand on that 2%”
you can utilize so you don’t have to go of Advisor Services clients turning to Staff reporter Jeff Berman can be reached at
out to a Goldman or a Morgan Stanley Schwab for a loan. [email protected].

42 INVESTMENT ADVISOR DECEMBER 2022/JANUARY 2023 | ThinkAdvisor.com