Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Industry Spotlight > Mergers and Acquisitions

TD Ameritrade's Retirement Plan Unit Being Merged Into Schwab's

By Jeff Berman

X
Your article was successfully shared with the contacts you provided.

What You Need to Know

  • The TD Ameritrade Retirement Plan name will be dropped as part of its integration into the Schwab Retirement Network for Advisors.
  • “More product details will be introduced to advisors in the coming months,” according to a spokesman.
  • The development comes nearly six months after Schwab wrapped up its $22 billion purchase of the former rival.

Charles Schwab is dropping the TD Ameritrade Retirement Plan business that serves RIAs and integrating it into the Schwab Retirement Network for Advisors. The development comes nearly six months after Schwab completed its $22 billion purchase of the former rival.

“As part of our ongoing TD Ameritrade integration, we are combining elements” of TDARP with SRNA “to provide an enhanced offering for advisors,” according to Schwab spokesman Mike Peterson.

“Advisors most often use these retirement plan solutions as an accommodation for their clients who are also small or medium-size business owners and who come to their advisor for help in offering a workplace plan,” he told ThinkAdvisor on Thursday.

“More product details will be introduced to advisors in the coming months,” Peterson said.

However, no additional TDARP retirement plans will be created after March 31. “Beginning April 1, any new opportunities will be directed to SRNA,” Peterson explained. “We intend to combine the existing TDARP business into the SRNA program in the future,” he added.

The Schwab spokesman did not specify when that will happen. However, Citywire, which was the first to report the news, said self-directed brokerage accounts on TDARP will start migrating to Schwab’s platform in about September 2022, according to a source briefed on the matter.

Schwab has notified some advisors about the change, according to the report, which notes that about 5% of TD Ameritrade’s RIA clients use TDARP and a comparable percentage of Schwab RIA clients use SRNA.

This is the latest change at TD Ameritrade since Schwab’s acquisition of the former rival was finalized Oct. 6.

Schwab said in November it planned to close almost 80% of TD Ameritrade’s network of about 260 branches that serve investors as part of planned expense reductions tied to the integration. Schwab also told advisors that, as part of the overall integration, Schwab Advisor Network and TD Ameritrade’s AdvisorDirect would be combined into a single referral network called Schwab Advisor Network.

Jeff Berman

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.