Schwab CEO tells Wall Street threat of TD Ameritrade RIAs bolting ended months ago, with potential defectors holding fast to avoid repapering headaches

Regarding the comment: "...there were no significant disruptions to the client experience and overall service levels remained strong – including answering client calls in under one minute..." - this is one of the more absurd comments I've heard on an earnings call. From our firm's perspective (~$1bn AUM), the transition from TD to Schwab has been an unequivocal disaster. Our team has done everything possible to shield our clients from the impact, but given Schwab's wildly outdated technology and processes, we can only do so much. Bettinger's comment is nothing short of laughable. The transition has been a huge negative for our firm and, more importantly, our clients.

I truly believe Walt is mistaken if he thinks that most defections happened before the merger. Those that left prior where generally advisors want an alternative to Schwab simply because they may have felt they would get lost in the shuffle of the 800 pound gorilla. Now, five months after the merger, most RIA's that stayed through the merger are so frustrated, many are looking to leave. Large firms, small firms, the incompetence and lack of preparation are evident across the board. The biggest factor I see is the lack of setting proper expectations with TDA advisors. To quote Liz Ann Sonders, Schwab's Chief Investment Strategist, "It isn't good or bad that moves the needle, its better or worse" Of course, she was referring to the markets reacting to economic news. If news id bad, but better than expected, that's usually a win, and vis-a-versa. This merger was clearly not a case of bad, because expectations with advisors were set so high. "seamless transition, no re-papering, trained professionals to help ease the pain. Instead what we received was "worse", unexpected, different than we were told. And because of "worse", my sense from advisors I know across the country that I speak to frequently, there are many that are looking around for an alternative. If Walt thinks the discomfort of repapering will keep advisors at Schwab, the hubris will come back to haunt him. I would take one month of pain if it would alleviate years of disappointment and frustration. It's also an easier sell for clients as well now because they have had frustrations with things that used to be very simple and easy. I think clients would be more inclined to stay with Schwab because of the name, but when it takes weeks to process something that should take a day or two, the name doesn't matter, only the frustration the client feels. And that when things get real. I have told clients we are actively looking for an alternative and they are 100% in agreement.