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Weekly Digest: December 9th
UBS Reduces Payouts for Lower-Producing Advisors:
UBS has announced a reduction in compensation for financial advisors generating less than $750,000 in annual revenue, aiming to enhance profitability within its U.S. wealth management division. This adjustment may lead to advisor departures and highlights the importance of aligning compensation structures with firm objectives.
Robinhood’s Acquisition of TradePMR to Enter RIA Market:
Robinhood Markets plans to acquire TradePMR, a move designed to penetrate the registered investment advisor (RIA) sector and compete with established custodians like Charles Schwab. This acquisition reflects a strategic effort to capitalize on the anticipated $84 trillion wealth transfer over the next two decades, targeting Gen Z and millennial investors.
Schwab Evaluates Fee Increase for Advisor Referral Program:
Charles Schwab is considering raising fees for its client referral program, which connects independent financial advisors with potential clients. This reevaluation, after a long period of unchanged pricing, underscores the evolving dynamics of client acquisition costs and the necessity for transparency in advisor-client relationships.
