Broker fired after 19 years agrees to permanent injunction against soliciting former clients, while ex-relationship manager in Schwab’s RIA unit settles her discrimination suit.
There’s a showdown looming between financial advisers and the custodians that safeguard their clients’ money.
Bank of America-owned online brokerage unit may enhance relationship-based pricing model but won’t extend free trading across the board, says Edge CEO Aron Levine.
On Tuesday, Schwab said it will eliminate commissions on trades for all U.S. stocks and exchange traded funds.
Charles Schwab Corp., in an escalating price war with rivals, plans to reduce U.S. stock, exchange traded funds and options online trade commissions. Shares fell the most in three years.
Advisors in Texas and Nebraska last week agreed to stop soliciting their former clients, but Schwab and Fidelity Investments also last week withdrew complaints against breakaway brokers in Wisconsin and Connecticut.
Charles Schwab Corp. said it is cutting 600 jobs, or about 3% of the workforce, as the San Francisco-based broker-dealer and wealth-advisory firm faces “an increasingly challenging economic environment.”
The discount brokerage pioneer has brought at least five lawsuits since July claiming contractual violations over client solicitation.
Terri Kallsen, the head of Schwab’s investor services unit, lost her job in July as part of a broad restructuring.
Filings in court and with Finra are the discount brokerage pioneer’s third attempt in less than two weeks to prevent departing brokers from soliciting former clients.
Schwab’s claim for an injunction comes as lawyers say non-solicitation disputes have mushroomed in the past year industry-wide.