Director Legal Counsel - Commercial Transactions

Schwab announces AI integration, falls short of Robinhood's agentic trading. September 30, 2026 @ 1:54 pm By JD Alois Charles Schwab (NYSE:SCHW) has announced the incorporation of artificial intelligence into its brokerage platform. According to a statement Schwab distributed, the investment platform has launched "Charley," an AI assistant to support customers. Beginning in October, the service will roll out to eligible users in the US, where clients can ask Charley investment questions. The services initially include: * Help with everyday tasks: Find information and next steps on transfers and payments, trading and account actions, account opening and maintenance, and general troubleshooting. * Access market information: Get quotes and market information, manage watchlists and alerts, and access Schwab's research tools. * Find account and service information: Ask about balances, recent transactions, positions, statements, tax documents, and account maintenance. * Complete select actions: Add or update watchlists, enroll eligible securities in dividend reinvestment, add beneficiaries, update contact information, add or update a trusted contact when eligible, and set or manage alerts through the Schwab Mobile App. * Connect with a Schwab representative: Reach customer service for additional assistance. The service is described as part of a focus on enhancing its client experience with AI. While a nice addition, the announcement came a day after competitor Robinhood announced agentic trading, where users can create scenarios for an agent to trade on their behalf. This goes far beyond what Schwab is offering. Once a disruptive innovator, Schwab is now trailing the competition, slow to launch new services like crypto access or AI integration. While Schwab is almost twice as large as Robinhood, its structure is clearly less agile and slower to adapt. Schwab holds a dramatic lead in assets and funded accounts, but Robinhood is growing faster, albeit with smaller accounts. Robinhood is appealing to a younger demographic with its modern offerings and its ability to innovate while Schwab appears to be resting on past accomplishments and incremental change. Sponsored Links by DQ Promote

OneVest has launched integration with Schwab's Digital Account Opening API, offering three deployment options for financial firms. Advisors can use automated workflows within OneVest's workspace, enterprise tech teams can embed the API directly into existing CRMs and portfolio systems without OneVest's interface, or AI engineering teams can connect through OneVest's MCP Server. The integration supports individual, joint, trust, custodial, and retirement accounts, eliminating manual data entry into Schwab Advisor Center. OneVest's agentic platform can pre-fill account information, identify missing data, and automate signature routing. "Every custodian integration in this industry gets built once and locked inside one piece of software," said Amar Ahluwalia, OneVest CEO. "We built ours to be an on-ramp, not a walled garden." The solution is available now to OneVest clients, with enterprise implementations available upon request.

Everyone's arguing about taxing the rich. Almost nobody noticed the $1 trillion already slipping past the IRS. Quick read. * Schwab generated $70M in tax-alpha revenue in a single quarter while Goldman Sachs moved in after Fidelity restricted client access to the strategies. * More than $1 trillion sits in legal tax-avoidance strategies, with AQR's tax-loss assets surging from $3 billion to $70 billion since 2023. * Nearly 30% of California's billionaire tax base relocated before the wealth tax qualified for the ballot, draining $536 billion in wealth. * Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here. This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. The country heads into a midterm election in which wealth inequality is among the hottest topics. California is advancing a wealth tax. Progressives promise to make the rich pay a "fair share" as Social Security marches toward insolvency, and pharmacies lock up toothpaste. Video Muted Meanwhile, according to Bloomberg's "Great American Tax Dodge" series, more than $1 trillion is already deployed in "tax alpha" strategies devoted to delaying or shrinking payments to the government. The strategies are legal, engineered by household-name asset managers, and growing faster than most tax bills Congress could pass. Where the money actually sits. Roughly $150 billion sits in tax-aware long-short accounts, with roughly $1 billion a week flowing in. Per Bloomberg, AQR became the world's largest hedge fund, past $140 billion at the end of March, with about $70 billion in tax-loss strategies, up from about $3 billion in 2023. Rival Quantinno holds about $60 billion, up from almost nothing five years ago. A Bloomberg analysis of SEC filings identified 105 ETFs created through Section 351 exchanges, holding $22.1 billion at launch and deferring at least $6.5 billion in embedded capital gains. More than half listed last year. At Charles Schwab (NYSE:SCHW | SCHW Price Prediction), the strategy generated roughly $70 million of revenue by the second quarter and about 1% of firm revenue, which totaled $7.07 billion in the second quarter, a business the 55-year-old firm entered only last year. How it works. Tax-aware long-short accounts use leverage to hold winners and losers simultaneously. Losses get harvested to offset gains elsewhere: a business sale, an RSU vest, a concentrated stock position. A Section 351 conversion lets an investor swap appreciated stock into a new ETF without triggering tax, deferring the embedded gain, potentially forever if shares are held to death and stepped up to heirs. The techniques are old, but the scale is new. Rate being avoided is already historically low. A half-century ago, when the private equity industry was just getting started, the top effective rate on long-term capital gains reached almost 40%, per the nonpartisan Tax Policy Center. In the decades that followed the top federal rate fell as low as 15%. Today it is 23.8%, including the net investment income tax. That is the rate the industry keeps engineering lower still. The political fight is over moving a number that fewer and fewer very large fortunes actually pay in full. Regulators watching, not yet acting. Treasury officials told an industry seminar in New York in July 2026 that some new strategies promise outcomes Congress did not intend when writing tax laws and are "potentially abusive," and that authorities will not turn a blind eye. Officials separately warned some strategies may be crossing lines "that should not be crossed." What's your number...? Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will it actually last? A good advisor can put a date on that in a single meeting. SmartAsset's free quiz matches you with up to three fiduciary advisors serving your area, so you can get YOUR retirement number now (sponsor) Treasury first signaled interest in 351 conversions late last year, floating a "transactions of interest" label. No guidance has been issued. The Investment Company Institute filed a comment letter in May seeking clarity. Fidelity, with almost $20 trillion under administration, indefinitely shut new clients out of the strategy and raised fees for some existing ones. Schwab tightened access in April and again in June. Goldman Sachs (NYSE:GS), BNY Pershing and Apex Fintech Solutions moved in to fill the gap. AQR added a disclosure acknowledging the IRS could someday bar the benefits or retroactively find them illegal, in which case "penalties may apply." Critics and defenders. Tom Steyer, the billionaire Democrat who ran an unsuccessful bid this year to become California's governor, told Bloomberg: "It's a game to see how rich they can be. Do I consider that unpatriotic, selfish and unrealistic in the long run? Absolutely." Morris Pearl, the former BlackRock (NYSE:BLK) managing director who leads the "Patriotic Millionaires," said: "I am not going to say these people are evil, but a major industry in America is this sort of financial engineering." Former FDIC chair Sheila Bair told Bloomberg: "There's no other reason to do it than avoid paying taxes. There's risk for the firms offering this." AQR says it adapts its process "to be more tax efficient in a manner designed to operate within all relevant guidance and regulations". Crypto hedge fund founder David Tawil put the defense more bluntly: "Do not blame Cliff Asness" because he did not write the laws, "Go call the IRS." Why the debate you're watching may miss the point. Every one of these maneuvers is legal. A debate over marginal rates assumes the rates determine what gets collected. The tax alpha industry bets they increasingly do not. Some of the highest-income filers are simply leaving states that tax them hardest. Hoover Institution scholars found that nearly 30% of California's billionaire tax base had already departed before the wealth-tax initiative qualified for the ballot, an outflow they value at $536 billion in wealth. Whatever rate Congress or Sacramento sets, an industry and a moving van exist to route around it. For readers whose income arrives through W-2 withholding and 1099s from a brokerage, available tools are narrower but real: tax-loss harvesting in a taxable brokerage account, ETFs over mutual funds where possible, the 0% long-term capital gains bracket if your income allows, and step-up in basis at death. That is the reader-scale version of what the trillion-dollar industry does at scale. If you've been thinking about retirement, pay attention (sponsor). Retirement planning doesn't have to feel overwhelming. The key is finding expert guidance, and SmartAsset's simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here's how: * Answer a Few Simple Questions. * Get Matched with Vetted Advisors * Choose Your Fit Why wait? Start building the retirement you've always dreamed of. Get started today! (sponsor)