Introduction to issuer communications

Introduction to issuer communications

Your clients may receive issuer communications, which include proxy ballots, corporate actions materials, and interim mailings, such as prospectuses, annual and quarterly reports, and any other materials that do not require a follow-up.

Because you are the primary point of contact for your clients, we offer the option to designate the recipients of important communications to your firm or, whenever possible, to notify you before we initiate communications directly.

Your clients can grant you the authority to receive issuer communications regarding investments held in their accounts. Issuer communications include:

Corporate actions

Voluntary reorganization announcement
  • Notifies your clients of corporate changes that affect their account securities.
  • Offers the opportunity to make decisions or take action.
  • Provides a deadline date for corporate actions to take.
Voluntary reorganization payment
  • Notifies your clients of payments they will receive for participating in a voluntary corporate action, such as a merger election, exchange, or tender offer.
  • This communication is informational only.
Bank failures
  • Notifies your clients when a bank failure affects their account
  • Explains how the failure affects them.
  • This communication is informational only.

 

Refer to Introduction to the Corporate Actions tool for more information.

 

Proxy ballots

  • Allow voluntary and reorganization decisions on behalf of your client
  • Require your firm to have trading authority
  • Offer three choices of receipt for your ballots:
    • Paper ballots—Receive paper ballots grouped into a master ballot that includes all shares for accounts that have delegated proxy voting for your firm.
    • Electronic ballots—Subscribe to fee-based ProxyEdge® services through Broadridge®, which allow advisors to receive ballots electronically.
    • Third-party management*—Hire a third-party proxy voting firm to facilitate and manage proxy voting for clients.

*Schwab can accommodate third-party voting firms as long as they subscribe to ProxyEdge through Broadridge.

 

Interim mailings

Interim mailings are all prospectuses, annual and quarterly reports, and any other material that does not require a follow-up.

For information regarding issuer communications, refer to the following:

Additional information

  • Advisors receive electronic and hard copies of alerts for all voluntary corporate action activity. Corporate action activity does not include mutual fund mergers.
  • Clients with a registered email address automatically receive corporate action announcements electronically.
  • Clients who retain trading authority or request informational copies can receive their proxy ballots and interim mailings in paper or electronic form.
  • Paper mailings are householded based on certain criteria. Electronic copies can be requested online.

Not covered by Release of Information Form

Even though your clients have the option to designate the recipients of their communications, certain issuer-related communications are not covered by their designation.

Refer to the table below for issuer communications that are not covered and who is designated to receive the communications:

Direct-to-client communications

Letter/notification typeAdvisor copy
BankruptcyNo
Class ActionNo
Dissenter’s RightsNo
Dividend ClaimNo
Dividend Standing InstructionsYes
(separate copies per account)
Foreign Dividend – ADRsYes
(separate copies per account)
Foreign Dividend – ORDNo
Optional DividendYes
(separate copies per account)
Redemption CreditNo
Spin OffYes
(Consolidated copy for all accounts)


Advisor-only communications

Letter/notification typeClient copy
Fixed Income MaturityNo
Full CallNo
Partial CallNo

How to add a power of attorney to an account
How to customize Schwab reporting
How to make general account changes
How to set up accounts in ProxyEdge®
How to set up clients with paperless documents
Introduction to householding
Introduction to paperless documents
Introduction to ProxyEdge®
Introduction to the Corporate Actions tool
Maintaining accounts 

Refer to the Issuer Communications and Release of Information Form to help manage your clients’ issuer communications.

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