1An independent registered investment advisor (RIA) is a professional advisory firm that offers advice about
securities, largely for a fee. RIAs are registered with the Securities and Exchange Commission (SEC) or their
state securities regulator and are subject to the Investment Advisers Act of 1940.
2The calculations apply a multiple of 2.0 times revenue in the RIA model and 1.8 times revenue in the Full
Affiliation model. This assumes that at the time of sale, the RIA model consists of 100% fee-based assets,
whereas there is still a mix of fee-based and non-fee-based assets in the Full Affiliation model. The
difference in comparable multiples is due to the unpredictable nature of the revenue generated by
The results generated in this report are inherently limited and rely on certain assumptions,
including information provided by the advisory firms and investment professionals that
participated in the Charles Schwab RIA Benchmarking Study. Schwab did not independently
verify Benchmarking information nor did it examine the investment performance or client
service levels of the participating firms. The report may not be representative of others with
similar circumstances and your results may vary significantly. See Terms, Conditions, and Assumptions for further details and assumptions.
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