Citywire

Hello and welcome to another episode of This Week in Wealth.

I'm Alex Steger, recording today from CityWire's headquarters in London, England.

And I am joined, as ever, by Ian Wennek, who is holding down the fort in New York City.

Ian, let's open with the important stuff.

Yes.

Yes, there has.

So we've been writing extensively about Schwab's kind of in-house RA business, Schwab Wealth Advisory, and esteemed CityWire.com forward slash RA senior reporter Sam Bajarski reported earlier this week that Schwab is raising fees for some clients of Schwab Wealth Advisory.

So there's going to be a five basis point increase on... client assets between $5 million and $10 million, and then client assets between $10 million and $25 million, they're going to have a 50% fee hike from 30 basis points to 45 basis points.

This question is going to feel like that, but I want to ask it a little bit differently because it's going to be a somewhat of a private equity question.

So I had Ian Wennek from CityWire on the podcast recently.

We had this fascinating conversation and it's made me want to ask people like yourself this question.

Where do these big firms ultimately go, right? The creatives, the charities, the ones who have kind of raised money from the top of the food chain, private equity, obviously the Saudi money is always a possibility.

And you say it all the time when you speak.

There's a reason when I'm on CityWire that people are leaving broker-dealers to create RIAs.

That's because we're to create a hybrid RIA.

Yeah, that's right.

So the FCA says, you know, disclose it more prominently on your website, you know, but that's maybe just percentage and maybe some examples.

Tom Dunbar was saying in that article in CityWire that, you know, that platforms should be disclosing the total margin that they...

Sorry, the total rate that they get versus what they are paying to the clients.

But I don't think that goes enough.

So they've got some funding, and they're a pretty good competitor for Canoe, the Bloomberg Canoe now.

All right, so the deal size wasn't announced, but there was an unnamed source on Citywire that put the rumor at roughly 20 times revenue, around 750 to a billion, not bad for Canoe.

And they framed it as Bloomberg's biggest deal since Barra.

Now, on our Ezra Group WealthTech Integration Scorecard, Canoe Intelligence has a 6.09, which puts them in the excellent category with 32 integrations.

Thank you very much for joining me and for what I think has been really useful discussion about where DFMs generally add value.

To all our Citywire South African listeners, thank you for tuning in to this episode of Money Markets and Masterminds with me, editor Rowan Jooste, and my producer, Alan Walsh, from the Citywire Studios team.

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And with that, and until next time, bye-bye.