Founder Joins Schwab Advisory Council

San Francisco, June 2007 – As increasing numbers of advisors choose to leave traditional financial services companies and start independent firms, Schwab Institutional has created a new advisory council designed to help ensure that transitioning advisors’ needs are being met. All members of the council have been through the transition process within the past several years and will be available to consult with advisors who are considering starting or joining an independent investment advisory business. Council members will also provide insight and feedback on Schwab Institutional’s current services and potential future offerings.

“Simply put, those who have lived it are the best resource for advisors considering a transition, and we believe they will be instrumental in helping us fine-tune our offering,” said Barnaby Grist, managing director of strategic business development for Schwab Institutional. “The average new advisor at Schwab Institutional has more than $100 million in assets and grows at about 30% in the first year. With that kind of successful business at stake, there is a real premium on getting it right the first time.” Advisory council members will serve two-year terms beginning May 2007. The 2007-2009 council members are:

  • John Burns, Burns Advisory Group, Oklahoma, OK
  • Jeff Flohr, Lakeside Capital Management LLC, East Seattle, WA
  • Michael Hebert, First National Corporation, Rockland, MA
  • John M. Krambeer, Camden Capital Management LLC, El Segundo, CA
  • Felipe Luna, Concert Wealth Management, Inc., San Jose, CA
  • Bill Spiropoulos, Corestates Capital Advisors, Newtown, PA

Council members cite technology and compliance as most time-consuming elements of transition

At the first meeting of the new council last month in Austin, TX, council members cited technology implementation as the most time-consuming part of their transition. Among the services that Schwab Institutional offers in this area are technology consultants who can help advisors select the right technology for their firms and share best practices based on Schwab Institutional’s 20 years of working with advisors. The second most time-consuming transition element was activity relating to legal and compliance requirements.

In the past year, Schwab Institutional has introduced a number of other new services designed to help advisors transitioning to independence. These include a relationship with Cambridge Investment Research that provides advisors with an integrated solution for managing both their fee-based and commission-based assets, financing capabilities to help new advisors with start-up expenses, and new partnerships to provide real estate services and errors and omissions insurance. In addition, Schwab has created dedicated service teams to help ease the transition process. In 2006 alone, this service team assisted in opening approximately 20,000 new accounts on behalf of advisors.