BlackCrown Inc. is likely to be ruing its decision not to instruct counsel.
“BlackCrown Inc. must retain an attorney should it wish to prosecute this case. Because BlackCrown Inc. has attempted to proceed with this action pro se, it must be dismissed. The Clerk of Court is directed to close this case,” said the court*.
It is likely that BlackCrown Inc. will seek to refile the case, but this time with counsel.
A question of competition
BlackCrown Inc., a private acquisition company that specialises in real estate disruption, had argued that the merger of TD Ameritrade and Charles Schwab would end competition between the two firms and would disadvantage both independent independent financial advice clients and their advisers, with smaller wealth management advice firms – i.e. those with less than $200 million in client assets under management – the most likely to suffer harm.
Schwab and Ameritrade don’t just provide brokerage services, they also act as RIA custodians for assets managed by U.S. Securities & Exchange Commission registered independent financial advice firms. Schwab already dominates the RIA market, accounting for around half the value of the total market; Ameritrade is the third largest player with around a 20% share.
As such, the merger may be in violation of Section 7 of the Clayton Act – an area of law the Supreme Court explored in United States v. Phila. Nat’l Bank [1963]). However, unless BlackCrown Inc. instructs legal advice, this may not be tested.
Furthermore, the merger would also impact the retail financial services market. This is because Schwab is currently the fourth largest player, with Ameritrade not far behind in seventh. The merger would make the new entity the third largest in the market, with an estimated $5 trillion in client assets.
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* https://www.courtlistener.com/docket/16637798/5/blackcrown-inc-v-charles-schwab-co-inc/
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