Charles Schwab

By slashing fees, custodians are also eliminating special ETF platforms they had spent the past five years building out.

There’s a showdown looming between financial advisors and the custodians that safeguard their clients’ money. It’s been brewing for some time, and the move by Charles Schwab on Tuesday to offer commission-free trading makes the clash all but inevitable.

As custodial pricing continues to fall, it’s still unclear where firms will make up the the money — but analysts and advisors agree other custodians will follow suit.

It's the latest move in the race to offer products at the lowest possible prices.

Other custodians are skeptical that financial planners want the tool in the first place.

“Impacted positions span all staffing grades, as well as organizations and locations across the company," the company says.

The discount brokerage says the advisor’s primary duties after his notice of resignation were to “make himself available” to help transition his clients to other brokers.

John VanEngelenhoven, who had worked at Schwab for 14 years, custodies with rival TD Ameritrade at the new firm.

Advisor Andy Saeger reportedly reached out to two clients via email and a LinkedIn message.

The then 61-year-old employee says she got written warnings for infractions while younger colleagues went undisciplined.