Managed Account Platform Section

How to set up a managed account master

How to set up a managed account master

If this is your firm's first experience with managed accounts at Schwab, you will need to set up a managed account master and complete an addendum to the Investment Manager Service Agreement before you can open managed accounts for your clients. This is a one-time process.

managed account is a portfolio of individual securities managed on a discretionary basis by a money manager or asset management firm with expertise in a specific asset class or investment style. Schwab offers several managed account solutions to meet your clients' investing needs: Managed Account Select (Select) Tooltip , Managed Account Access (Access) Tooltip , and Managed Account Marketplace (Marketplace) Tooltip , which includes an option to use turnkey asset management platform providers doing business with Schwab.

  • A completed managed account addendum to the Investment Manager Service Agreement 
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)
  1. Select the Managed Account Addendum Investment Manager Service Agreement to open the Forms library on Schwab Advisor Center®.
  2. Click Select, and then choose Open with PDF. Print the form. 
  3. In the addendum, you agree to satisfy (or cause to be satisfied, in the case of Marketplace accounts) the conditions of Rule 3a-4 under the Investment Company Act of 1940, as amended.
  4. Read the addendum and obtain the appropriate signatures.
  5. Send the signed addendum to your Schwab sales support team
  • Schwab sends your new managed account master in about one week. 
  • Add the managed account master to your Schwab Data Delivery® preferences and to all new managed account paperwork. 
  • Choose investment strategies for your client's managed account. You will need to obtain options authorization Tooltip for your managed account master if you select an investment strategy that trades options.
  • If you have questions regarding your managed account master, contact your Schwab sales support team
  • If you have other questions about managed accounts, 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
Resource: Managed Account Access® Money Manager tab and Disclosure Documents
Resource: Managed Account Select® Money Manager tab and Disclosure Documents

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 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.

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 do I find my Schwab sales support team?
You can find your Schwab sales support team on Schwab Advisor Center. At the top of the page, click Support > Find Your Team > Sales. Click on your territory to expand the list. From there, obtain the contact information for the region serving your state.

How to add an additional managed account, or change or terminate a money manager
How to select investment strategies for managed accounts
Introduction to managed accounts
Introduction to Retirement Plan Solutions
Introduction to the managed accounts communications library
Introduction to turnkey asset management providers through Schwab

Marketplace accounts with asset-based pricing pay a minimum monthly service fee of $62.50. Asset-based fees do not include costs for trades executed away from Schwab, exchange and regulatory fees, transfer taxes, odd-lot differentials, mutual short-term redemption fees, margin interest, electronic funds or wire transfer fees, and any other similar costs or charges. Transaction-based pricing on Marketplace accounts is similar to the transaction-based pricing on non-managed accounts. For trade commission pricing, contact your relationship manager. Trades with other broker-dealers may have separate fees or commissions.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the options disclosure document titled Characteristics and Risks of Standardized Options before considering any option transaction.

With long options, investors may lose 100% of funds invested. Multiple-leg options strategies will involve multiple commissions. Spread trading must be done in a margin account. Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received. Writing uncovered options involves potentially unlimited risk.

Adobe Reader and Adobe Acrobat are registered trademarks of Adobe Systems Incorporated in the U.S. and/or other countries, which is not affiliated with or employed by Schwab.

Please read the Schwab Managed Account Services™ Disclosure Package for important information and disclosures regarding the Managed Account Select® ("Select") and Managed Account Access® ("Access") programs. In addition, please read the participating money manager's ("MM's") disclosure brochure, including any supplements for important information and disclosures. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio. Services may vary, depending on which MM you choose, and are subject to an MM's acceptance of the account.

The Select and Access programs are sponsored by Charles Schwab & Co., Inc. (“Schwab”). The MMs in Select are not affiliated with Schwab. The Schwab Center for Financial Research (“SCFR”) is a division of Schwab. In Select, SCFR conducts an operational evaluation of MMs, monitors the MMs performance periodically, and provides research. In Access, SCFR conducts operational evaluations of unaffiliated MMs. Schwab does not provide advice or recommendations regarding managed accounts, MMs, or securities to investment advisors or their clients. Independent investment advisors are not owned by, affiliated with, or supervised by Schwab.

The Managed Account Marketplace® ("Marketplace") platform is not a program sponsored by Schwab. Marketplace is an open architecture platform that gives investment advisors and their clients' access to separate account managers and turnkey asset management providers (TAMPs). Participating MMs and TAMPs need to establish a contract and have system compatibility with Schwab in order to be in Marketplace. The MMs, TAMPs, and their investment strategies available in Marketplace are not evaluated by Schwab.