Advisers hail new Schwab CEO

Some financial advisers who keep client assets under custody with Schwab Institutional of San Francisco welcomed the news last week that Walter W. Bettinger would take over as chief executive of The Charles Schwab Corp. in October.

Mr. Bettinger, 47, has been waiting in the wings to take over for company founder Charles R. Schwab since February 2007, when he was named president and chief operating officer. Mr. Schwab, who turns 71 at the end of the month, will remain as executive chairman of the board.

Schwab Institutional is the largest custodian for advisers in the industry. Its advisers control $575.3 billion in assets.

Because the move was widely expected, some advisers likened it to a non-event. Others, however, were clearly pleased with the change.

“It’s positive because the transition was handled so well,” said Joe Sheehan, managing principal of the Moneta Group LLC in Clayton, Mo. Moneta has about $4 billion in assets with Schwab Institutional, and advises $7.9 billion in total.

“Walt understands the culture of keeping clients’ best interests’ in mind and providing the best service with the best talent,” he said.

Mr. Bettinger understands the importance of balancing advisers’ needs with the parent company’s other major line of business, discount brokerage for the retail investor, another adviser said.

“Walt has done a lot to assure me [Schwab Institutional] wants to be our strategic partner as opposed to our competition,” said Adam Bold, chief executive of the Mutual Fund Store of Overland Park, Kan., which has $4.3 billion in assets with Schwab.