Custody banks

In correspondence with Rep. Andy Barr, R-Ky., the Federal Reserve and Office of the Comptroller of the Currency said the Securities and Exchange Commission's proposed safeguarding rule could change banks' custody businesses.

They're among a handful of companies willing to hold clients' digital assets for safekeeping. Many of their peers balk at the reputational and financial risks.

Three out of the top four RIA custodians compete directly with their RIA clients through their networks of branch offices and call centers.

The acquisition creates a discount brokerage behemoth that experts say could reshape automated advice.

CEO Ronald O’Hanley says the poor performance reflects both the industry’s “continued challenging conditions,” as well as “lower client activity.”

In a sweep of changes, the custodian is embracing an open architecture technology platform.

The reduction, which includes 15% of senior management, is part of a larger effort to cut costs and automate more business.