Merger of Schwab, TD Ameritrade Advisor Referral Networks Begins

What You Need to Know

  • Schwab is reducing the number of advisor firms in the two advisor referral programs to 175 from 298.
  • TD Ameritrade’s AdvisorDirect referral program is being integrated into the new Schwab Advisor Network.
  • Schwab is selecting RIAs based on matching the unique needs of affluent investors in each market, it says.

Charles Schwab has started the process of integrating the Schwab and TD Ameritrade advisor referral networks this week as part of an initiative that will result in a decrease in the number of participating RIA firms to 175 from 298, Schwab said on Wednesday.

TD Ameritrade’s AdvisorDirect (AD) referral program is being integrated into the new Schwab Advisor Network (SAN), a “single, industry-leading referral network for independent advisors,” Schwab spokesman Rob Farmer told ThinkAdvisor.

The combination of the two programs, first reported by RIA Intel on Wednesday, is “part of the continuing integration of Schwab and TD Ameritrade,” Farmer said.

The integration of the companies started after Schwab finalized its acquisition of TD Ameritrade Oct. 6.

“As with all aspects of integrating the two companies, bringing the referral networks together took careful consideration,” Schwab said at its website, introducing the new SAN.

“Each participating SAN and AD firm was reviewed with an eye toward investor need and the makeup of the combined branch network footprint,” Schwab said, explaining how it selected RIA firms for the new referral program. “Although the resulting program may look new, the focus remains the same: serving high- and ultra-high-net-worth investors in markets throughout the United States,” it said.

The referral programs for both firms have been “incredibly successful both for advisors and the investors they serve,” Schwab said. “We recognize the strong advisor interest in our respective referral networks and made their integration a priority among the important work we’re doing to combine the two companies.”

Add comment

Your Header Sidebar area is currently empty. Hurry up and add some widgets.