Managed Account Platform Section

How to convert a non-managed account to the managed account platform 

How to convert a non-managed account to the managed account platform 

Schwab Advisor Services non-managed accounts can retain their account number and be converted to a:

  • Managed Account Select® (Select)
  • Managed Account Access® (Access)
  • Managed Account Marketplace® ( Marketplace Tooltip )

Not all registration types are eligible for conversion, such as estate accounts, guardianships, and conservatorships cannot convert to a Select or Access managed account. Also, government entities, excluding the federal government, are not eligible to participate in Select or Access.

When converting accounts to Select or Access Schwab automatically removes the following features:

  • Existing margin features
  • Checkwriting and Visa® debit features
  • Recurring distributions
  • Schwab ACH (MoneyLink®)

Options are removed unless the chosen money manager uses options, and the options level will be reduced if the chosen money manager uses a lower option level than what is on the account when it is converted.

You can convert to a managed account using DocuSign® or paper forms.

Required

All accounts
Select or Access account specific
  • The version number of the disclosure documents*
  • Managed Account Services™ Disclosure Package date*
  • Financial details and investment restrictions

*Located in the Managed Account Select Overview or Managed Account Access Overview tabs

 

Conditional

Managed account uses an investment strategy that trades 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

Adding the account to an existing quarterly trade confirmation report subscriptionSchwab account number(s) in the existing subscription
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 either Alliance Authentication (only available when starting the envelope within Schwab Advisor Center), or, both text message (SMS) authentication and Knowledge Based Authentication (KBA) for DocuSign (available in both Schwab Advisor Center and the DocuSign Console)
Electing to group Schwab accounts for fee calculation purposesAffected Schwab account numbers
Securities are used to fund the account and are missing cost basisCompleted Cost Basis Edit Form

Required

All accounts
  • Firm name, contact information, and managed account master
  • Name of the money manager firm and investment strategy
  • Account number and registration type of the converting Schwab account
  • Funding Tooltip for the account (meeting required account minimums) through a journal entry, a transfer of assets (using eligible securities), or a check deposit
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)
Marketplace accountsThe money manager's master account (obtained from the money manager)

 

Conditional

Managed account uses an investment strategy that trades 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

Adding the account to an existing quarterly trade confirmation report subscriptionSchwab account number(s) in the existing subscription
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
TAMP accountTurnkey asset management provider (TAMP) and managed account master
ABP Pricing Asset-based pricing Tooltip schedule name (if applicable)
Existing account has the margin feature and/or check writingApproval letter from the money manager acknowledging these features can remain on the account
Investment strategy does not trade options, but the money manager is approved to trade optionsApproval letter from the money manager acknowledging that options are associated with the account
  1. Go to the forms library on Schwab Advisor Center and select the form(s) below that apply to your managed account. Click Select and then open the form using your preferred submission method.

    Select or Access managed accounts
    • Managed Account Select/Access Account Conversion & Manager Change Form
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
    Marketplace managed accounts
    • Managed Account Marketplace Money Manager Limited Power of Attorney (LPOA)
    • Asset-Based Pricing Addendum to Account Applications and Agreements (if applicable)
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
    Marketplace managed accounts using TAMPs
    • Managed Account Marketplace TAMP Money Manager Limited Power of Attorney (LPOA) 
    • 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 the forms and obtain signatures from each account holder, trustee, authorized individual, or custodian
  3. Send the signed forms that do not require notarization to Managed Account Operations via a Schwab Advisor Center service request. Alternatively, you can fax or mail the signed forms (including the notarized forms) to the following addresses:
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 submitted using DocuSign, see the What's next? section of How to use DocuSign.
  • 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.
  • Select and Access accounts must be funded to meet the money manager's account minimum; if this has not been met, then the money manager will not be added to the account.
  • If you have questions about converting an existing Schwab account to a managed account, contact Managed Account Operations at 877-595-6345 or via a Schwab Advisor Center service request.

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

Form: Cost Basis Edit Form
Form: Managed Account Asset Based Pricing Addendum to Account Applications and Agreements
Form: Managed Account Marketplace Money Manager Limited Power of Attorney (LPOA)
Form: Managed Account Marketplace TAMP Money Manager Limited Power of Attorney (LPOA)
Form: Managed Account Select/Access Account Conversion & Manager Change Form
Form: Managed Account TAMP Asset-Based Pricing (ABP) Addendum
Form: Options Trading and Margin Application

If multiple signers are assigned to a form for DocuSign, in what order do the signers receive and approve the form(s)?
The order the signers are notified of a document pending electronic signature depends on the order in which you listed the signers on the envelope-creation page. Signers will receive an email notification in sequential order after each signer has completed their signing.

When an account is converted to another account type, can you still access the account history?
Yes. You can access up to 10 years of history.

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 Accounts 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.

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 you and your clients may receive from Schwab and Schwab's reasons for sending them.

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

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 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.

How to add an additional managed account, or change or terminate a money manager
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 set up a managed account master
How to use DocuSign®
Introduction to managed accounts
Introduction to Retirement Plan Solutions
Introduction to turnkey asset management providers through Schwab
Introduction to the managed accounts communications library

TAMP services may vary depending on which TAMP provider you choose. Schwab does not recommend or endorse any particular TAMP. Schwab is not affiliated with any of the TAMPs available in Marketplace. Schwab makes no representation or warranty about any TAMP or its suitability for your clients. Schwab does not guarantee the accuracy of the information about the services provided by any particular TAMP.

Schwab calculates Account Grouping fees in Select and Access by totaling the value of client assets in their managed accounts within the following investment strategy categories: equity, ETF, fixed income and fixed income ladder. Assets in equity investment strategies are charged according to the applicable fee schedule category (i.e., regular equity strategies, index-based strategies, or ThomasPartnersstrategies). Diversified Portfolios, Master Limited Partnership ("MLP") strategies, options-based, and balanced strategies are charged according to the regular equity fee schedule. Corporate bond ladder, preferred stock and convertible bond strategies are charged according to the fixed income fee schedule. Schwab charges the combined assets of grouped managed accounts with equity strategies in the following order according to the applicable fee schedule category: (i) accounts with equity strategies (other than index-based strategies, if any); (ii) accounts with index-based strategies (if any); and (iii) accounts invested in the ThomasPartners Strategies. **ERISA accounts can only be grouped with other ERISA accounts of identical registration.

Asset-based fees do not include costs for trades executed away from Schwab, exchange and regulatory fees, transfer taxes, odd lot differentials, mutual fund 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.

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.

With long options, investors may lose 100% of funds invested.

Covered calls limit the upside potential of the underlying stock, as the stock would likely be called away in the event of substantial price increase. Downside protection is limited to the premium received.

Multiple-leg options strategies will involve multiple commissions. Spread trading must be done in a margin account.

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.

Visa® is a registered trademark of Visa U.S.A. Inc. Please see the Visa debit card agreement for any additional terms and conditions.

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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