How to purchase structured products

How to purchase structured products

A structured product is a type of financial instrument that combines a bond (zero-coupon bond) and a derivative (option or swap), into a single investment product, thereby creating a bond that is linked to the performance of an underlying asset or a combination of assets. The underlying assets can include stocks, bonds, commodities, indices, currencies, or any mix of these.

Structured Products are highly customizable and typically tailored to meet the needs and objectives of investors. They are designed to offer investors exposure to specific investment strategies, investment income or market conditions that may not be readily available through traditional investment vehicles.

It is important to note all repayment of both principal and contingent additional amounts is subject to the creditworthiness of the issuer, and investors do not receive dividends associated with, or have any rights to, the reference components.

Schwab's platform gives advisors an open architecture approach to sourcing structured products for their client portfolios. Advisors with an approved structured product addendum on file can access new-issue structured products that meet our minimum custody and trading requirements.

You can purchase structured products through your Advisor Bond Specialist at 888-986-3700.

  • Current Form ADV Tooltip
  • Investment Manager Service Agreement for Structured Products Investments
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)
  • For investment advisors or firms that are categorized or referenced as a bank or trust, a Bank/Trust Amendment

Advisors seeking to purchase structured products through Schwab must have an approved structured products agreement on file for their firm.

Complete this process to submit required service agreements for approval to purchase structured products.

  1. Select the Investment Manager Service Agreement for Structured Products Investments link to open the Forms & Applications page on Schwab Advisor Center®.
  2. Click Select, and then select Open PDF.
  3. In addition to the service agreement, open the Bank/Trust Amendment, if applicable.
  4. An authorized officer must submit the completed form(s) via Service Request to AS Enrollment.
  1. Access new issue structured products meets Schwab's minimum custody and trading requirements by:
    • Contacting issuers directly for access to a broader selection of shelf offerings
    • Working directly with issuers to create custom structures
  2. Contact the Structured Products Group at 877-464-3343 for information about shelf offering distributions and issuer contact information for customized reverse inquiries.
  3. To place a structured product trade, contact your Advisor Bond Specialist at 888-986-3700.
  • For a status update, contact either the Structured Products Group or your Advisor Bond Specialist.
  • To learn more about Schwab’s structured products platform, gain access to shelf-offering distribution lists, or for customized reverse inquiries information, contact our Structured Products Group at 877-464-3343.
  • To place a new structured products trade, contact your Advisor Bond Specialist at 888-986-3700.

Form: Bank/Trust Amendment
Form: Investment Manager Service Agreement for Structured Products Investments

Resource: Sample Disclosures Language for Form ADV (Revised)
Resource: sec.gov

How to trade fixed income securities

Introduction to fixed income trading