How to close or delink accounts

How to close or delink accounts

An account closure occurs when a customer or advisor requests an account be closed and no longer used. A “delinking” occurs when either an account holder or an investment advisor requests the advisor no longer manage the account, thus the account is removed from the advisor's master account.

When an account needs to be closed or delinked, you can use the appropriate form to complete the request or send it in a written letter of authorization.

  • Schwab account number and account registration that will be closed or delinked.
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website).
  • Go to the Forms library on Schwab Advisor Center and select the applicable form.  
    • Accounts with a zero balance can use the Account Closure Form.
    • Accounts with a balance should use the appropriate form below:
    • For account types not listed, contact your Schwab service team.
  • Complete all applicable sections of the form.
  • If closing a Custodial account using the Custodial Account Beneficiary Disbursement Form or any other account using the Account Closure Form, and you require access to receive statements, confirms, or tax reporting information on the account after it has been closed, complete the Investment Advisor Information Access section on the Account Closure Form.
  • If you're not using one of our digital flows, print the form(s) and obtain  signatures Tooltip from the account holder(s) or an authorized agent of your firm. Send the signed form(s) to your Schwab service team via a Schwab Advisor Center service request.
  1. Draft a letter of authorization containing all applicable information, including:
    • Date of letter.
    • The Schwab account number to be closed.
    • The Schwab account registration type.
    • Instructions to close the account.
    • Signature of at least one account holder, authorized agent or advisor on the account.
  2. Once the letter is signed, send it to your Schwab service team via a Schwab Advisor Center service request.
  1. Select the Delink Request Form link to open the Forms & Applications page on Schwab Advisor Center. Click Select, and then select the appropriate option.
  2. Complete all applicable sections.
  3. If you require access to the client’s account after it has been delinked, also open the Investment Advisor Information Access form and complete all applicable sections.
  4. If you're not using one of our digital flows, print the form(s) and obtain a signature from an authorized agent in your firm and, if applicable, the appropriate client signatures Tooltip . Send the signed form(s) to your Schwab service team via a Schwab Advisor Center service request.

This process may be used to delink a Schwab account using a written letter of authorization. Alternatively, account holders can call Schwab Alliance to request to delink the account.

  1. Draft a letter of authorization containing all applicable information, including:
    • Date of letter.
    • The Schwab account number that will be delinked from the advisory firm.
    • The Schwab account registration type.
    • Instructions to remove the advisory firm.
    • Signature of at least one account holder or authorized agent on the account.
  2. Once the letter is signed, send it to your Schwab service team via a Schwab Advisor Center service request.

Once you have submitted your request:

  • The account closure or delinking request will be reviewed and processed by your service team.
  • A Notice of Closed Account or a Notice of Delinked Account alert will be created when either is requested by the account holder or the investment advisor.
  • Once an account is closed, if the client wants to reinstate it, they must submit a new account application with all the account holders’ signatures.
  • Once an account is delinked, if the client wants your firm to manage the account again, they must submit a new Limited Power of Attorney (Investment Advisors LPOA) form with all the account holders’ signatures.
  • A closed or delinked account will no longer appear in the Schwab Data Delivery® downloads; you cannot bill investment advisory fees through Schwab; you no longer have authority over the account to direct disbursements; and you may not have access to the account holder’s information.
  • Schwab must distribute all assets before an account will be closed.
  • If you have questions about closing or delinking a client’s account, call your service team.

Go to the Forms library on Schwab Advisor Center and select the forms below.

Form: Account Closure Form
Form: Check & Internal Transfer (Journal) Form
Form: Custodial Account Beneficiary Disbursement 
Form: Delink Request Form
Form: ESA Distribution Form
Form: Investment Advisor Information Access
Form: IRA Distribution Form
Form: Limited Power of Attorney (Investment Advisors LPOA)

What if my client doesn’t want to liquidate assets when closing the account?
Additional asset distribution options are available when a verbal account closure request or a written Letter of Authorization is received for an account still containing funds. Talk to your service team to determine the best option for your client.

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