Why are competitors eager to enter a tough business?
- RIA custody is a tough business
- Competitors are scrambling to get in
- Envestnet and FNZ are entering the market
- Schwab’s Bernie Clark is surprised by the interest
The business of providing custody services to registered investment advisors is notoriously difficult, according to Charles Schwab’s top custody executive. However, despite this, there is a growing number of well-capitalized companies eager to enter the market. Envestnet, the industry’s largest turnkey asset management platform, recently announced its partnership with New Zealand firm FNZ to make a foray into the Schwab-dominated market. This move has surprised Schwab’s senior vice president, Bernie Clark, who expressed incredulity at the interest. It seems that the demand for RIA custody services is stronger than expected, attracting new players to the industry.
Public Companies: Charles Schwab (SCHW), Envestnet (ENV)
Private Companies: undefined
Key People: Bernie Clark (Senior Vice President)
Factuality Level: 1
Justification: The article does not provide any relevant information or context. It includes a random quote from a Schwab executive without any explanation or analysis. The article seems to be a snippet from a larger piece and lacks coherence and substance.
Noise Level: 2
Justification: The article is mostly noise and filler content. It starts with a question but does not provide any meaningful analysis or insights. It also includes irrelevant information about signing in to read Barron’s Advisor, which is unrelated to the topic.
Financial Relevance: Yes
Financial Markets Impacted: No
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial industry, specifically the business of providing custody services to registered investment advisors. However, it does not mention any extreme events or their impact.
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