By Kenneth Corbin
Charles Schwab is setting another limit on participation in the Schwab Advisor Network, the program through which it refers clients to independent advisory firms on its custody platform. Schwab is now generally requiring firms to have a minimum of $500 million in assets under management, double the previous threshold of $250 million, a spokesman confirms.
The custodian outlined the new criteria in a brochure describing the Schwab Advisory Network, or SAN, dated Dec. 12.
The move follows a change disclosed earlier this year, when Schwab said it would increase the minimum account size for individual clients to be eligible to participate in the program to $2 million, up from $500,000, beginning next year.
Both changes winnow the eligibility to participate in SAN, which advisors see as a potentially lucrative feeder source of leads and referrals.
The spokesman says that Schwab won't kick out firms already participating in the program that don't meet the new minimum AUM requirement.
"The Schwab Advisor Network has been running since 2002, and as we always have, we will continue to evolve and enhance the program to ensure it's positioned to meet the increasing wealth and advice needs of our clients," he says. "This new minimum for assets under management for participating firms went into effect earlier this year. It has no impact on firms currently in the program nor on the total number of firms in the program."
Participation in the SAN program is fluid, but Schwab's spokesman says it typically numbers between 100 and 150 firms.
Schwab maintains other eligibility requirements, including the stipulation that advisors who actively manage client portfolios have at least 10 years of experience and that if a firm is offering financial planning services, at least two members of the team must hold the Certified Financial Planner credential.
Schwab requires participating advisory practices to receive compensation primarily through fees. Earlier this year, it said it was raising the fees it charges firms to participate in the SAN by 5%.
Although Schwab offers its own trading and wealth management services directly to consumers, it also serves as a custodian to registered investment advisory firms. In that role, it holds assets on behalf of those firms and provides them with back-office support and technology.
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(END) Dow Jones Newswires
December 17, 2025 13:48 ET (18:48 GMT)
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