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Schwab Pressures Small RIA’s

Updated: Nov 15, 2021

Schwab announced yesterday they will require all RIA’s to obtain Errors and Omission Insurance which must contain cyber and social engineering protection. They attribute this mandate to an “uptick” in claims. Do you believe that? Do you believe there has been an “uptick” in claims? Schwab being the broker dealer custodian for their contracted RIA’s would be named in any lawsuit where assets were stolen from accounts. So would the RIA. That would not change under this mandate. What will change is small RIA’s profit margins. They are getting squeezed again. This is part of a continuing process that is planned and deliberate. Schwab has a history of terminating small RIA’s.

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SEC fines Schwab $187M

This company is despicable. Parades around on a white horse as the protector when in fact they are the destroyer. They have one goal - strip investors bare.

SEC slams Schwab

Read today’s SEC action against Schwab. They were fined $187M for egregious behavior. They lied to their clients. Maybe they should be kicked off their own platform!!!

Stephen Albert Greco

Aka David - just threw a rock at Goliath. He filed a lawsuit against Schwab and others . He used a phrase - “Silencing and Retaliation Scheme”. Schwab is a corporate bully out to destroy small RIA’

Broker Dealers seem quite casual, if not indifferent, to informing RIA clients that they have terminated the contract with their advisor. Almost like telling a motorist he left his car lights on. Broker Dealers refer to these individuals as account holders, while RIA's refer to them as clients. If you ask a compliance person at a Broker Dealer how the recipients of the notice of termination are likely to "feel" after receiving notice, they will show you that they have not given the matter much thought, and really don't care. 

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