Schwab cuts costs for its advisors.
THE EVIDENCE IS clear that since the markets and economic crisis began advisors have been working longer hours, in particular spending more time with clients, while their revenues have suffered. In response, Charles Schwab Advisor Services announced June 25 a series of moves that will have the net effect of reducing costs to the RIAs that custody with Schwab. Beginning in July, Schwab said it will waive commissions on electronic equity trades and reimburse transfer-of-account fees charged by contra brokers for up to one year for new-to-Schwab clients of advisors who open accounts by the end of 2009. In addition to a number of technology enhancements, Schwab will also waive 2010 maintenance fees for the 2,200 RIA firms that use its PortfolioCenter portfolio management software and license that software through Schwab.