Kerstin Osterberg: We are already beginning to see the impact. 16 tweet, which details a two week backlog for opening new accounts. Service issuesĬourtney Ranstrom, co-founder of Portland, Ore.-based small RIA, Trailhead Planners, echoed Cmeja's frustration in a Nov. TDA Institutional had yet to execute a requested transfer of funds from an IRA to a 401(k) account, after 19 days and counting, Cmeja tweeted Nov. "Is this the titanic headed for an iceberg? Too big of ship, too small of rudder, especially as merger continues forward?" asked Adam Cmeja, founder of small Carmel, Ind., RIA, Integrated Planning & Wealth Management, in a Dec. It’s part of the equation."Ī handful of RIAs who use TDA as their primary custodian have let their voices be heard, too. "It wants to manage the fallout certainly, but it's not going to invest in a system that is going to be sunset and is willing to let some business leak. "Of course Schwab is going to say all the right things to try to patch things over and freeze the market," the analyst says. Iceberg ahead?Īn RIA analyst speaking anonymously to comment candidly is skeptical, however, about just how far Schwab will go to create a makeshift TD service of sufficient quality. The merge of the two custody systems will not happen until some time between April and October 2023, according to current estimates. "Schwab is working to make the overall transition of client accounts paperless, including via negative consent, and other features like migrating over transactional history and existing standing instructions," she explains.Īdvisors can talk to their relationship manager "to find out if it makes sense" to direct their new business to Schwab ahead of the integration, she adds. is to wait for client accounts to move as part of the coordinated overall transition," she says, via email. Manish Khatta: We could probably write a book about the issues going on.īut Schwab spokeswoman Kerstin Osterberg says the firm advises TDA-custodied RIAs to stay put rather than transfer assets to Schwab to avoid complicated repapering. Judging by Twitter complaints (see below), service issues have fallen lopsidedly on the TDA side, rather than Schwab. "We are also aggressively hiring and expect to further expand the service team beginning next month as these new hires complete training," he adds. "We have been actively addressing this with the immediate addition of people to help meet current service demands and advisors’ expectations. "We are aware of some instances recently where TD Ameritrade Institutional clients have not received the level of service we pride ourselves on delivering," he says. The Westlake, Texas, broker-dealer has already committed to a budget to fund hiring at least 140 TDA service staff, with 50 already on board.Īt least 90 more are due by Christmas, according to John Tovar, TDA managing director, via email, in response to an RIABiz query about TDA Institutional client complaints. Alois Pirker: Schwab has all hands full with integrating the two businesses.īut it's stopping short of guiding advisors to transition client assets to Schwab Advisor Services before its planned 2023 integration with TD Ameritrade Institutional (TDA). is taking urgent action to restore diminished service levels to RIAs with assets custodied at TD Ameritrade Institutional, which may also quell particularly raucous comments on social media.
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