The DOL rule could give a boost to the RIA breakaway business if more wirehouse reps shift to a fee-based model, said Walt Bettinger, CEO of Charles Schwab Corp.

“One could envision a larger percentage of those brokers considering a movement into the independent RIA model,” Bettinger said Friday during a business update with analysts.

With wirehouse commission and fee payout rates of 45 percent to 50 percent, compared to a 60 percent to 70 percent payout at RIA firms, “it could be an enticing means by which you see a little bit of a burst in brokers deciding to go into that independent RIA space,” he said.

Bettinger added that it was too early to see a “measurable pickup” in Schwab’s RIA custody business as a result of the DOL rule, but “we think it’s one of the possibilities that could play out over time.”

In a related development, early this month Merrill Lynch announced that beginning next April, clients opening new IRA accounts would only be able to use fee-based options. The firm also said existing IRA holders who want to get advice would be encouraged to shift to fee-based platforms.

As far as Schwab goes, “we don’t anticipate any meaningful negative impact” from the DOL rule, Bettinger said Friday.

Over time, though, some traditional competitors could be challenged, he said. “We think certain business models will be under a degree of pressure from a revenue standpoint, and from a compensation standpoint for their client-facing salespeople.” Those pressures could cause further industry consolidation.

As of the end of the third quarter, Schwab custodied $1.25 trillion for RIAs out of $2.73 trillion in total client assets. Schwab-affiliated RIAs brought in $15.8 billion in net new assets during the latest quarter.