Paul Fenner, a registered investment advisor and president of Tamma Capital, was quoted in a recent Barron's article discussing a global IT outage that has disrupted operations at major brokerage firms and wealth managers, including Charles Schwab. In the article, Fenner shared his experience of navigating the challenges posed by the outage during an onboarding meeting with a new client.
A worldwide IT outage has not only grounded flights but also disrupted some functions at U.S. wealth management and brokerage firms, leading to investor frustrations over account access issues. Charles Schwab, one of the largest brokerage firms serving individual investors and independent financial advisors, alerted customers about potential disruptions in online and phone services due to a third-party, global issue. The company has since deployed a fix to resolve the problem.
Other firms affected include Merrill Edge and Morgan Stanley, which reported technical issues and limited functionality on their platforms. In contrast, companies like Fidelity and Vanguard have stated that their services remain unaffected by the outage.
Despite the widespread disruptions, some financial advisors have found ways to adapt. Paul Fenner reported no issues accessing Schwab and Fidelity’s platforms but had to adjust his client onboarding meeting due to tech glitches at banks. Fenner commented, “Fortunately, my new client was very understanding, allowing us to talk more in-depth about her planning needs versus what was happening in the markets.”
This IT outage underscores the importance of flexibility and clear communication in the financial advisory industry, even in the face of technical challenges.
