Managed Account Platform Section

How to select investment strategies for managed accounts

How to select investment strategies for managed accounts 

When you open managed accounts for your clients, you select money managers and investment strategies that best meet your clients' needs. Schwab provides tools to help you perform your own due diligence on Managed Account Access® ( Access Tooltip ) and Managed Account Marketplace® ( Marketplace Tooltip ) money managers and strategies. Schwab provides ongoing due diligence for money managers and investment strategies in Managed Account Select® ( Select Tooltip ).

  • Your firm name and managed account master
  • If you select investment strategies using options:
    • Options authorization Tooltip using a completed Options Trading and Margin Application.
    • On the Managed Account Select Overview or Managed Account Access Overview tabs, investment strategies using options will have options note in the Additional Information column
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)

Schwab provides ongoing due diligence for money managers and investment strategies in Select.

  1. Review the list of money managers and investment strategies available for Select managed accounts using one of several resources provided by Schwab:
  2. Research investment strategies appropriate for your client. Schwab Advisor Center® provides access to Schwab's managed account research for Select investment strategies. Alternatively, you can use external resources.
  3. Consult with your client and select their preferred investment strategy(ies).
  4. Print the Schwab Managed Account Services™ Disclosure Package and supplements for the investment strategy(ies) your client has chosen (links are provided in the Disclosure Documents column of the Select Requirements and Disclosure Documents table), and provide these to your client.
  5. Retain the money manager firm name, investment strategy(ies), and version number of the disclosure documents to add to the Select account application. If you use eAuthorization for Digital Onboarding in lieu of forms, these will automatically populate for you.  
  6. If your client selects an investment strategy that uses options, you must have options authorization Tooltip for your managed account master. Investment strategies using options will have an options note listed within Additional Information, located under the Operational section of the individual Strategy Details page. To avoid delays in setting up your client's account, follow the instructions in the "How to obtain options authorization for a managed account master" module below.

In Access, you conduct your own due diligence for money managers and investment strategies.

  1. Review the list of money managers and investment strategies available for Access managed accounts, using one of several resources provided by Schwab:

    Contact your sales representative if you would like to work with a money manager or investment strategy not currently listed at Schwab.

  2. Research investment strategies appropriate for your client. Alternatively, you can use external resources to conduct your research.
  3. Consult with your client and select their preferred investment strategy(ies).
  4. Print the Schwab Managed Account Services™ Disclosure Package and supplements for the investment strategy(ies) your client has chosen (links are provided in the Disclosure Documents column of the Access Requirements and Disclosure Documents table), and provide these to your client.
  5. Retain the money manager firm name, investment strategy(ies), and version number of the disclosure documents to add to the Access account application. If you use eAuthorization for Digital Onboarding in lieu of forms, these will automatically populate for you.  
  6. If your client selects an investment strategy that uses options, you must have options authorization Tooltip for your managed account master. Investment strategies using options will have an options note listed within Additional Information, located under the Operational section of the individual Strategy Details page. To avoid delays in setting up your client's account, follow the instructions in the "How to obtain options authorization for a managed account master" module below.

Marketplace is not a program sponsored by Schwab but a platform that allows you and your client to use money managers or turnkey asset management providers (TAMPs) based on your own negotiated arrangements.

  1. Use the Money Managers tab to identify Marketplace money managers and investment strategies, or download a list of TAMPs doing business with Schwab.
    Contact your sales representative if you would like to work with a money manager or investment strategy not currently listed at Schwab.
  2. Research investment strategies appropriate for your client. Alternatively, you can use external resources to conduct your research.
  3. After choosing your Marketplace money manager(s) or TAMPs, contact each one to discuss contractual and operational arrangements and to obtain required forms.
  4. Complete the required forms and return them directly to the money manager or TAMP. Do not submit the documents to Schwab.
  5. Follow the instructions in the How to obtain options authorization for a managed account master module below.
  6. Retain the money manager firm name or TAMP name, the investment strategy(ies) and appropriate managed account master, and asset-based pricing schedule name (if applicable) to add to the Marketplace account application.

If you and your client choose an investment strategy that uses options, you must obtain options authorization Tooltip for the managed account master. To avoid delays, obtain this authorization before setting up the client's managed account.

If you have more than one managed account master, you must submit one application for each managed account master linked to a sub-account that trades options.

  1. Go to the Forms library on Schwab Advisor Center and select the forms that apply to your managed account.
  2. Click Select and then open the form using your preferred submission method.
  3. Complete and sign the form. For DocuSign, see How to use DocuSign.
  4. Send the signed form to Managed Account Operations via a Schwab Advisor Center service request, fax, or mail.
East CoastWest Coast
Fax: 877-828-1176Fax: 877-815-3479
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 2380
Omaha, NE 68103
Regular mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
P.O. Box 982603
El Paso, TX 79998-2603
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations 
200 S 108th Ave 
Omaha, NE 68154
Overnight mail:
Charles Schwab & Co., Inc.
Attn: Managed Account Operations
1945 Northwestern Drive
El Paso, TX 79912-1108
  • Proceed to open the desired managed account type for your client.
  • For questions regarding opening or maintaining a managed account, contact Managed Account Operations at 877-595-6345 from 9:00 a.m. to 5:00 p.m. ET or via a Schwab Advisor Center service request.

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

Form: Managed Account Addendum Investment Manager Service Agreement
Form: Options Trading and Margin Application
Form: Managed Account Select® & Managed Account Access® Investment Restrictions Form 
Resource: Money Managers tab
Resource: Managed Account Select® and Managed Account Access® Strategies
Resource: Schwab Advisor Center® Managed Account Research
Resource: Schwab Managed Account Services™ Disclosure Package
Resource: Turnkey asset Management Platform providers doing business with Schwab

Do I have additional regulatory requirements if I use a money manager?
Yes. You should be familiar with your obligations under the Investment Advisers Act of 1940 and Rule 3a-4 under the Investment Company Act of 1940 when using managed accounts. In the Managed Account Addendum Investment Manager Service Agreement with Schwab, you agree to meet applicable regulatory requirements. Consult with your legal or compliance professionals regarding your obligations in this area.

How can I confirm that a money manager or an investment strategy I would like to use is available through Schwab's managed account solutions?
Schwab offers three main resources to determine if a money manager or investment strategy is available for Schwab's managed accounts. For money managers and investment strategies in all three managed account solutions, you can view the Money Managers tab. This list is updated on a daily basis.

Schwab offers two additional resources for Select and Access. For the most current list of Select and Access money managers and investment strategies, you can view the Managed Account Select Overview or Managed Account Access Overview tabs. Both tabs are updated daily. For a printable list, you can download the Select and Access Strategies list or the Select and Access Trust Strategies list, both of which are updated quarterly.

Can I use the open an account digital workflow to open a managed account?
Yes. eAuthorization for Digital Onboarding is available for all three platforms (Managed Account Select, Access, and Marketplace) and Schwab Personalized Indexing™.

Can I use a money manager or investment strategy that is not available at Schwab?
If you would like to work with a money manager or use an investment strategy not currently available through Access or Marketplace, contact your sales representative. However, you will not be able to work with a money manager or investment strategy not available through Select, because Schwab conducts ongoing due diligence for Select money managers and investment strategies.

Can any type of account be opened as a managed account?
No. Select and Access Managed accounts at Schwab cannot be opened for estate accounts, including guardianships and conservatorships. A Schwab Personal Choice Retirement Account® is eligible for Marketplace only. Please also note that due to the Security and Exchange Commission's "pay to play" rule, a non-federal government entity Tooltip is eligible for Marketplace but not for Select or Access. Account features may be limited for certain types of managed accounts. If you have questions about eligible registration types and features for managed accounts, contact Managed Account Operations at 877-595-6345 or via a Schwab Advisor Center service request.

Can I download my clients' managed accounts to my portfolio management system?
Yes. Once the new managed account master is added into the Schwab Data Delivery® tool, you will be able to download data. If you encounter any problems, contact Advisor Platform Support at 800-647-5465.

Can I use the same master for all my managed accounts?
No. You will need one managed account master for Select and Access accounts and another managed account master for Marketplace accounts. You will also need a different Marketplace master for asset-based pricing than for transaction-based pricing.

What kind of managed account paperwork will my client receive from Schwab?
For Select and Access accounts, refer to Introduction to the managed accounts communications library for information about what communications you and your client may receive from Schwab and Schwab's reason for sending them.

For Marketplace accounts, money managers are responsible for communicating changes and providing their ADVs and privacy policy statements directly to you.

How to add an additional managed account, or change or terminate a money manager
How to convert a non-managed account to the managed account platform
How to open a personal brokerage account on the managed account platform
How to open a Roth IRA on the managed account platform
How to open a traditional IRA on the managed account platform
How to open a trust account on the managed account platform
How to open an organization account on the managed account platform
How to open business retirement plans on the managed account platform
How to open a Schwab Personalized Indexing Account 
How to set up a managed account master 
Introduction to managed accounts
Introduction to Retirement Plan Solutions
Introduction to turnkey asset management providers through Schwab
Introduction to the managed accounts communications library
Introduction to Schwab Personalized Indexing (SPI)