How to create a standing authorization

How to create a standing authorization

A standing authorization from your client enables your firm to take specific actions on the client's behalf. Standing authorizations save time and increase accuracy when the same instructions will be used repeatedly. 

You can use the Move Money tool to create standing authorizations for checks, internal cash transfers, and domestic wires. For ACH transactions, the creation and client authorization of a new ACH profile serves as a standing authorization for those transactions.

Note: Standing authorizations are not needed for first-party transactions your firm has authority to perform. For example, if your firm has first-party WPFA authority on the account, first-party check requests and internal transfers will not require client authorization. WPFA-C authority permits firms to process first-party wires without client authorization. LPFA and NDFA authorities do not have authority for first-party money movement, so creating a standing authorization can save you time obtaining client authorization.

All accounts
  • Schwab account number from which funds will be withdrawn
  • View Move Money function access Tooltip  
  • Read and Move Money data access Tooltip  
  • If you're planning to print or use DocuSign instead of eAuthorization, you'll need Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)
Non-Organization Accounts

 

eAuthorization or signature from all account holders or authorized agents on the account, excluding minors

 

Organization (Non-Trust) AccountseAuthorization or signature from one authorized agent who has signed the most recent account application and has control over the account.  

 

Organization (Trust) Accounts

 

 

eAuthorization or signature from all trustees who have signed the most recent account application and have control over the account

  • If trust account's trustee is an organization, only one authorized agent must sign/approve on behalf of organization.

Note: Standing authorizations cannot be created online for Pension Trust accounts.

In addition to the information above, the following process specific information may be required:
Checks
Internal cash transfer
  • Update Move Money function access
  • Schwab account number and registration to which the funds will be transferred
Wire transfers
Retirement distributionsAn IRA Distribution Form and tax withholding election preferences

For step-by-step instructions on how to set up standing authorizations, please refer to this guide.

Use this process to create a standing authorization for:

  • A check request made payable to an on-record beneficiary or a third party
  • A cash journal from a Schwab account to another with a different account registration
  • A wire transfer from a Schwab account to an on-record beneficiary, third party, or escrow/title company.
  1. Go to the Move Money tool, and select the account from which funds will be disbursed. 
    Before entering the request, verify that a standing authorization for checks has not already been established by reviewing the On-Request SLOAs / MoneyLinks area of the account. To proceed, click the move money action next to Create SLOA.

    Check Request

    The Input Data page is displayed.

    • For Payee, indicate payee type and provide the payee name details.
    • For Recipient Address, select the address type and provide the mailing name and address, if required.
    Journal RequestOn the Select Account page, enter the Schwab account number for the receiving account.
    If your firm also manages the receiving account, the account name and registration information will display on the Input Data page.
    Wire Transfer

    The Input Date page is displayed.

    • Enter the receiving bank's ABA number and click Validate ABA#. Once validated, the receiving bank's information will display. Enter the receiving bank account number.
    • For Beneficiary, indicate beneficiary type Tooltip , and provide the beneficiary or escrow/title company name and address, if required. Click Add Intermediary Information Tooltip , and complete all fields in this section, if applicable.
    • If the wire transfer is to an escrow/title, enter client's escrow account information, the account holder's name, and reference number in the Additional Wire Instructions field.
    Retirement Account Distribution

    Verify the federal tax Tooltip  and state tax Tooltip percentage to be withheld Tooltip

    If you select eAuthorization, the separate ESA distribution form is not required because approval of the tax withholding election is included in the eAuthorization process completed by your client.

    The most recent tax withholding election will be applied to all current distribution instructions on file. However, if investment advisor (IA) disbursement authorization is granted in the appropriate distribution form, you can make changes to the federal tax withholding elections from 10-99% and state tax withholding elections from 1%-99%.

    and select the distribution reason from the drop-down list. If creating a standing authorization for a retirement account that has not yet had a distribution, see How to request a retirement distribution for further instructions. You may use this process after a retirement distribution has occurred.

  2. Enter a unique name for the standing authorization in the Display Nickname as field. Click Continue.
  3. On the Verify page, review the information for accuracy and edit the transaction details as needed. If the standing authorization is eligible for eAuthorization, select Use Electronic Authorization. Submit the request.
  • If eAuthorization is selected, a confirmation message appears. Click OK to proceed. Schwab will automatically notify your clients and prompt them to log in to Schwab Alliance or the Schwab Mobile app to approve the standing authorization. All clients on the account will be notified separately and are required to approve via eAuthorization.
  • If eAuthorization is not selected, a prefilled authorization form that includes any necessary IRA distribution language is produced. Print the form, and obtain signatures from all account holders or authorized agents, excluding minors. Send the signed form to your Schwab service team via a Schwab Advisor Center service request.

Once you have submitted the standing authorization request:

  • The acknowledgement page confirms the transaction. You can print or save this page for your records.
  • Your service team sets up the instructions once all required clients have approved the standing authorization, either using eAuthorization or by signing and returning the prefilled authorization form.
  • Once the standing authorization is established, it will appear in Move Money. You can either select the standing authorization from the Standing Authorizations table in Move Money to initiate a transaction, or start a transaction and select the relevant standing authorization from within the workflow.

To select a form, go to the Forms library on Schwab Advisor Center.

Form: Standing Authorizations for Checks and Internal Transfers (Journals)          Resource: Frequently Asked Questions About the SEC's Amended Custody Rule: SLOAs

Who within my firm should be given Update Move Money function access and Request Wire function access?
Only employees authorized to make withdrawal requests on behalf of your firm.

Note: View Move Money function access is a prerequisite for other Move Money related function access.

If I don't see one of my clients' standing authorizations in the Move Money tool, who should I contact?
Contact your service team for assistance in setting up the request for you to view online.

What accounts are eligible for eAuthorization of a standing authorization?
To be eligible for electronic authorization, the account must be eligible for online money movement. For a complete list of Move Money eligible brokerage accounts, see Registration types supported for Move Money.

Certain accounts and roles are excluded from using eAuthorization – see table below.

Eligible for eAuthorizationIneligible for eAuthorization
  • Traditional IRA
  • Roth IRA
  • Inherited IRA
  • Inherited Roth IRA
  • Organization accounts
  • Schwab One Brokerage accounts
  • Individual brokerage account with DPOA (provided DPOA is web-enabled)
  • Custodial IRA*
  • Inherited Custodial IRA*
  • Custodial Roth*
  • Inherited Custodial Roth*
  • Education Savings
  • Joint accounts with DPOA role
  • Special Disbursement Restriction accounts
  • Any account with FPOA role


*Eligible for check and internal transfer standing authorizations only

Introduction to eAuthorization