Managed Account Platform Section

How to add an additional managed account, or change or terminate a money manager

How to add an additional managed account, or change or terminate a money manager

You can use DocuSign® to add an additional managed account or change or terminate a money manager on Schwab's Managed Account Select® ( Select Tooltip ), Managed Account Access® ( Access Tooltip ), or Managed Account Marketplace® ( Marketplace Tooltip ) platforms.

To add an additional managed account, or change or terminate a money manager, you will need:

Required

All accounts
  • Your firm name, contact information, and managed account master
  • Existing account number
  • Account information
  • Adobe Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)

 

In addition to the required information for all managed accounts listed above, the following platform-specific information is required to open an additional managed account:

Select or Access accounts
Marketplace accounts
  • New money manager's firm name and investment strategy
  • New money manager's master account number (obtained from the money manager)

 

Changing a money manager 

In addition to the required information for all managed accounts listed above, the following platform-specific information is required to change a money manager:

Select or Access accounts
  • Existing money manager's firm name
  • New money manager's firm name and investment strategy
  • Version number of the new money manager's disclosure documents (located in the Managed Account Select Overview or Managed Account Access Overview tabs)
  • Managed Account Services™ Disclosure Package date (located in the Managed Account Select Overview or Managed Account Access Overview tabs)
  • Financial details and investment restrictions
  • Funding Tooltip for the account, (meeting required account minimums) through a journal entry, a transfer of assets (using eligible securities), or a check deposit
Marketplace accounts
  • New money manager's firm name and investment strategy
  • New money manager's master account number (obtained from the money manager)

 

Terminating a money manager

In addition to the required information for all managed accounts listed above, the following platform-specific information is required to terminate a money manager:

Select or Access accounts
  • Existing money manager's firm name and investment strategy
  • If closing the account: 
    • Your client's Schwab account number in which to journal funds.
    • For retirement accounts: an IRA distribution form.
  • If maintaining the account: 
    • Your firm's non-managed account master 
    • Your firm's non-managed asset-based pricing addendum, (if applicable)
Marketplace accounts
  • Existing money manager's firm name
  • If closing the account: 
    • Your client's Schwab account number in which to journal funds. 
    • Bank account information in which to wire funds. 
    • For retirement accounts: an IRA distribution form.
  •  If maintaining the account: 
    • Your firm's non-managed account master. 
    • Your firm's non-managed asset-based pricing addendum. 
  • Asset-Based Pricing to Transaction-Based Pricing Conversion Form, (if applicable).

 

Conditional

All accounts
  • If the managed account uses an investment strategy trading options: options authorization Tooltip using a completed Options Trading and Margin Application. Investment strategies using options will have an options note listed within Additional Information, located under the Operational section of the individual Strategy Details page.
  • If using DocuSign to submit forms:
    • For existing Schwab clients: a complete Schwab Advisor Center® profile with the account holder's current email address and mobile phone number.
    • For new-to-Schwab clients, the email address, and a mobile phone number.
    • All clients must use both text message (SMS) authentication and Knowledge Based Authentication (KBA) for DocuSign.

 

Open additional managed account/change a money manager 

In addition to the conditional information for all managed accounts listed above, the following platform-specific information may be required to open an additional managed account or to change a money manager:

Select or Access accounts
Marketplace accounts

If your client chooses to add an additional managed account, their existing managed account is cloned to open an additional managed account with identical registration using a separate investment strategy or money manager.

If your firm has been granted delegation of advisor authorizations Tooltip , an authorized agent of your firm may be able to sign on behalf of the account holder(s).

  1. Go to the Forms library on Schwab Advisor Center and select the forms below applicable to your managed account. Click Select and open the form using your preferred submission method.
    • For Select or Access managed accounts: 
      • Managed Account Select/Access Add or Change a Money Manager
      • Options Trading and Margin Application (if the chosen investment strategy uses options)
    • For Marketplace managed accounts:
      • Managed Account Marketplace Add or Change a Money Manager Form
      • Managed Account Asset-Based Pricing Addendum to Account Applications and Agreements (if applicable)
      • Options Trading and Margin Application (if the chosen investment strategy uses options)
    • For Marketplace managed accounts using TAMPs:
      • Managed Account Marketplace Add or Change a Money Manager Form
      • Managed Account TAMP Asset-Based Pricing (ABP) Addendum (if applicable)
      • Options Trading and Margin Application (if the chosen investment strategy uses options)
  2. Complete the forms and obtain client signature:
    • For DocuSign eligible forms, see How to use DocuSign.
    • For forms not eligible for DocuSign, print and obtain signatures from each account holder.
  3. Send the signed forms 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

If your client chooses to change a money manager, the money manager and the investment strategy on their existing managed account will be updated.

This process can be used to change the money manager and investment strategy on your client's existing managed account. If your firm has been granted delegation of advisor authorizations, an authorized agent of your firm may be able to sign on behalf of the account holder(s).

  1. Go to the Forms library on Schwab Advisor Center and select the forms below applicable to your managed account.
    • For Select or Access managed accounts:
      • Managed Account Select/Access Add or Change a Money Manager
      • Options Trading and Margin Application (if the chosen investment strategy uses options)
    • For Marketplace managed accounts:
      • Managed Account Marketplace Add or Change a Money Manager Form 
      • Managed Account Asset-Based Pricing Addendum to Account Applications and Agreements (if applicable)
      • Options Trading and Margin Application (if the chosen investment strategy uses options)
    • For Marketplace managed accounts using TAMPs:
      • Managed Account Marketplace Add or Change a Money Manager Form
      • Managed Account TAMP Asset-Based Pricing (ABP) Addendum (if applicable)
      • Options Trading and Margin Application (if the chosen investment strategy uses options)
  2. Complete the forms and obtain client signatures:
    • For DocuSign eligible forms, see How to use DocuSign.
    • For forms not eligible for DocuSign, print and obtain signatures from each account holder. Send the signed forms 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

If your client chooses the terminate feature, the money manager and investment strategy on their existing managed account will be removed. The client can also choose to maintain or close their account.

This process can be used to terminate the money manager. If your firm has been granted delegation of advisor authorizations, an authorized agent of your firm may be able to sign on behalf of the account holder(s).

  1. Go to the Forms library on Schwab Advisor Center and select the forms below applicable to your managed account.
    • For Select or Access managed accounts:
      • Managed Account Select/Access Money Manager Termination
      • Your firm's non-managed asset-based pricing addendum (if applicable)
    • For Marketplace managed accounts:
      • Managed Account Marketplace Money Manager Termination Form
      • Your firm's non-managed asset-based pricing addendum (if applicable)
      • Asset-Based Pricing to Transaction-Based Pricing Conversion Form (if applicable) 
    • For Marketplace managed accounts using TAMPs:
      • Managed Account TAMP Asset-Based Pricing (ABP) Addendum (if applicable)
      • Your firm's non-managed asset-based pricing addendum (if applicable)
      • Asset-Based Pricing to Transaction-Based Pricing Conversion Form (if applicable) 
  2. For Select and Access accounts only: Before completing step 3 below, generate a Final Portfolio Review Report to obtain security gain/loss information.
  3. Complete the forms and obtain client signatures:
    • For DocuSign eligible forms, see How to use DocuSign.
    • For forms not eligible for DocuSign, print and obtain signatures from each account holder. Send the signed forms 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

Once you submit your request:

If forms were submitted using DocuSign, see the What's next? section of How to use DocuSign.

When adding an additional managed account:

  • Schwab processes all forms in the same time frame, regardless of the account opening method and will notify you with an alert when the account is opened, usually within three business days after Schwab receives the forms. Schwab may contact you for additional documentation or information after completing an initial review. Forms with missing information, signatures, or dates can result in processing delays.
  • Your firm receives an alert when the account is opened and restricted. The restricted account can be funded; however, Schwab's recommendation is to wait until after the initial account completes the customer verification process Tooltip so funds are available to the client. 

 

When using the change or terminate feature:

  • Select and Access accounts must be funded to meet the money manager's account minimum; if this is not met, the money manager is not added to the account.

 

When changing or terminating a money manager:

  • For a terminated or changed money manager, you will receive a Schwab Advisor Center alert indicating the account was closed or the money manager was delinked and/or changed on the account.

 

All processes:

  • Schwab processes all forms in the same time frame, regardless of the account opening method, usually within three business days after Schwab receives the forms.
  • If you have questions about adding additional managed accounts or changing or terminating a money manager, contact Managed Account Operations at 877-595-6345 or via a Schwab Advisor Center service request.

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

FormsResources
Asset-Based Pricing to Transaction-Based Pricing Conversion Form
Cost Basis Edit Form
Managed Account Asset Based Pricing Addendum to Account Applications and Agreements
Managed Account TAMP Asset-Based Pricing (ABP) Addendum
Managed Account Select/ Access Add or Change a Money Manager
Managed Account Select/Access Money Manager Termination Form
Managed Account Marketplace Add or Change a Money Manager Form
Managed Account Marketplace Money Manager Termination Form
Options Trading and Margin Application

Schwab Managed Account Services™ Disclosure Package

How can my client fund the account upon opening?
Your client can use the following funding Tooltip options for a managed account:

  • Check made payable to Charles Schwab & Co., Inc.
  • Transfer funds from another Schwab account using a journal transfer
  • Transfer from another financial institution
  • Electronic transfer using ACH (Schwab MoneyLink®)(Marketplace accounts only)

How can I confirm a money manager or an investment strategy I would like to use is available through Schwab's managed account solutions? 
Schwab has three 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 daily.

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

Can I use a money manager or investment strategy not available at Schwab?
If you want to work with a money manager or use an investment strategy not currently available through Access or Marketplace, contact your sales representative. However, you may not request to add a money manager or investment strategy to Select, because Schwab Center for Financial Research (SCFR) evaluates and provides initial as well as ongoing due diligence for Select money managers and investment strategies.

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 to convert a non-managed account to the managed account platform
How to move money for managed accounts
How to select investment strategies for managed accounts
Introduction to managed accounts

The Schwab Center for Financial Research ("SCFR") is a division of Charles Schwab & Co., Inc. ("Schwab") that evaluates money managers (MMs) in Schwab's Managed Account Select ("Select") program. The Select program is sponsored by Schwab. Schwab does not provide advice or recommendations regarding managed account strategies or MMs to investment advisors or their clients.

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.

DocuSign and the DocuSign logo are trademarks or registered trademarks of DocuSign, Inc. in the United States and/or other countries.

Adobe Reader and Adobe Acrobat are registered trademarks or trademarks of Adobe in the United States and/or other countries.

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.

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