Nearly four months after choosing LPL Financial as its primary custodian and exclusive broker-dealer, Haslett, Michigan-based CG Advisor Network announced that it is leaving Schwab Advisor Services for Axos Advisor Services to serve as custodian for its high net worth clients.
CG Advisor Network – which has $3.1 billion in assets under management (AUM) and more than 70 financial advisors – had custodied with TD Ameritrade for decades, and continued to maintain accounts at Schwab Advisor Services after Schwab completed its acquisition of TD Ameritrade in October 2020. At the time, that deal created a giant with $6 trillion in client assets across 28 million brokerage accounts, even as Schwab and TD Ameritrade remained two functionally separate entities.
The move to Axos Advisor Services comes less than a month before Schwab aims to conduct the long-awaited migration of TD Ameritrade custodial accounts to its own platform, which is widely considered the biggest custody conversion in U.S. history. Several of the executives at Axos previously held similar roles at TD Ameritrade.
“CG Advisor Network is committed to empowering our advisors for success and growth,” CEO Tony Mazzali posted on LinkedIn when announcing the custodial change to Axos. “I’m more determined than ever to ensure our custodians and partners are building our brand to our clients, not building their brand to our clients.”
His firm provides independent advisors with transitions support, portfolio management and other investment management solutions, marketing, compliance, as well as next-generation consulting such as ongoing education and succession planning. CG Advisory Services, its RIA, serves individuals, families and businesses.
Axos Advisor Services is an RIA-focused hybrid custodian and financial services company that also helps advisors go independent. It is part of Axos Financial, the holding company for Axos Clearing, Axos Invest and Axos Bank. Axos Clearing has approximately $34.8 billion of assets under custody and/or administration. Axos Advisor Services provides a technology stack through bundled, open architecture and API-only solutions.
During the T3 Conference in March, Schwab executives told the audience that the conversion will occur over Labor Day weekend and, prior to that time, advisors currently on the TD Ameritrade platform would have access to the Schwab platform to develop familiarity. At the conference, Tom Bradley, Managing Director of Charles Schwab Advisor Services, noted that the conversion planning was finished and execution was “going really well.”
“Our balance sheet is like a fortress,” Bradley told the T3 audience. Speaking to advisors in attendance, he added, “This is one of those times that we’re going to ask you to step back and focus so that you’re ready to go on the Tuesday after Labor Day.”
Chris Latham, Managing Editor at Wealth Solutions Report, can be reached at clatham@wealthsolutionsreport.com.
