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Schwab to TD Ameritrade FAs: Welcome. You’ll Feel Right at Home Here

By Rita Raagas De Ramos October 7, 2020

Charles Schwab completed its acquisition of TD Ameritrade on Tuesday, and executives moved swiftly to assure advisors on both platforms that the integration of the two mega-custodians will be seamless.

During the integration — which is expected to take 18 to 36 months — Schwab and TD Ameritrade will continue to operate separate broker-dealers to serve their respective clients, leaving the products, services and delivery channels each group uses largely unchanged.

“This is about bringing complementary firms together. It’s about trying to find the best possible solutions we can across those two firms and bringing them to our clients. Nothing will change,” Bernard Clark, head of Schwab Advisor Services, said Tuesday during a media briefing about the deal.

Roughly 30% of the advisors who custody at Schwab are also TD Ameritrade clients.

“We value every relationship,” he said, reiterating that advisors of all asset sizes will be welcome at the combined entity. “And we look forward to everyone joining our platform.”

Clark also assured advisors that the integration won’t cause either Schwab or TD Ameritrade to drop the ball on day-to-day operations.

“It will be largely business as usual on Day One [of the integration] as we get to know each other and dig deeper into the opportunities and the synergies we can find amongst our companies,” he said.

There are 25 teams at Schwab — some large, some small — working on the various aspects of the integration, according to Clark, who described it as the “early days” of the union.

“We will not be distracted,” he said. “We are going to continue to support your business as strongly as we always have with great pride, great passion.”

The companies got past the last necessary regulatory hurdle last week, when they received the approval of the Federal Reserve. The $26 billion deal is expected to result in a business with $6 trillion in total client assets, 28 million brokerage accounts and more than five million daily average trades.

“We will do the hard work it takes to make sure that we get there and that we have the right individuals,” he added.

The integration will include training staff and advisors across systems and technologies, as well as bringing both companies’ cultures together, Clark said.

Ultimately, the combined entity will use a single platform, Clark said. “That will be the most efficient and best possible way we can grow platforms in the future for advisors,” he said.

He couldn’t commit to when that single platform will be achieved, however.

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Tags:  Finding and winning new clients , Client retention , Technology , Staffing and recruiting , Regulatory/legal issues , Investment strategies , Portfolio management , Marketing , Charles Schwab , Schwab Advisor Services , TD Ameritrade , Schwab

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