Managed Account Platform Section

How to open an organization account on the managed account platform 

How to open an organization account on the managed account platform 

An organizational account may be opened for most domestic incorporated or non-incorporated organizations governed by U.S. jurisdiction on:

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

Government entities, excluding the federal government, are not eligible to participate in Select or Access.

If your client already has an existing managed account on file and would like to open additional managed accounts with identical registration, refer to How to add an additional managed account, or change or terminate a money manager.

You can open organization accounts for clients who are new to Select, Access, or Marketplace using DocuSign® or paper forms.

Required

All accounts
Select or Access account specific

 

Conditional

SituationRequirements
Opening a funding accountFirm's non-managed account master
Funding the account through a journal entryClient's Schwab account number

Any authorized individual is affiliated with or employed by:

  • Stock exchange
  • Member firm of an exchange or FINRA
  • Municipal securities broker-dealer and Rule 3210 applies
A FINRA Rule 3210 Consent Letter
Managed account uses an investment strategy that trades optionsOptions authorization 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 mobile phone number
  • All clients must use both text message (SMS) authentication and Knowledge Based Authentication (KBA) for DocuSign
Electing to group Schwab accounts for fee calculationsAffected Schwab account numbers
Securities used to fund the account and are missing the cost basisA completed Cost Basis Edit Form

Required

All accounts
Marketplace account specificMoney manager's master account (obtained from the money manager) if using forms. If using eAuthorization for Digital Onboarding, this is not needed as it is built into the digital workflow. 

 

Conditional

SituationRequirements
Opening a funding accountFirm's non-managed account master
Funding the account through a journal entryClient's Schwab account number

Any authorized individual is affiliated with or employed by:

  • Stock exchange
  • Member firm of an exchange or FINRA
  • Municipal securities broker-dealer and Rule 3210 applies
A FINRA Rule 3210 Consent Letter
Managed account uses an investment strategy that trades optionsOptions authorization 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 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)
Marketplace accounts
  • Turnkey asset management provider (TAMP) and managed account master (if applicable)
  • Asset-based pricing schedule name (if applicable)
The investment strategy does not trade options, but the money manager is approved to trade optionsAn approval letter from the money manager acknowledging that options are associated with the account

To open an organizational account on the managed account platform, a combination of non-managed and managed account paperwork is required. The information outlined below details the managed account forms required; to view the non-managed account form requirements, please see How to open an organization brokerage account.

See organization account types below to determine which non-managed account form package to open on the Schwab Advisor Center Forms library.

Organization account typeApplication typeRequired roles in application
Corporate Tooltip Incorporated
  • All authorized agents
  • At least one internal control person*
  • Owners with 10% or greater ownership
Limited liability company Tooltip Non-incorporated
  • All managers
  • At least one internal control person*
  • Members with 10% or greater ownership (for member managed LLCs)
Partnership, including a limited liability partnershipNon-incorporated

General partnerships:

  • All general partners
  • At least one internal control person*

Limited partnerships (LP, LLP, LLLP):

  • All general partners
  • At least one internal control person*
  • Limited partners with 10% or greater ownership
Sole Proprietor Tooltip Non-incorporated
  • All authorized agents
  • Sole proprietor
Unincorporated association Tooltip Non-incorporated
  • All authorized agents
  • At least one internal control person*
  • Owners with 10% or greater ownership
Charity, foundation, DBA, or investment clubSchwab no longer opens accounts for charity, DBA, or investment club registrations because they do not reflect the organization's legal structure.
  1. Go to the Forms library and select the forms below that apply to your managed account.
  2. Click Select and then open the form using the preferred submission method.

    Select or Access managed accounts
    • Managed Account Select/Access Acct Conversion & Manager Change Form
    • Options Trading and Margin Application (if the chosen investment strategy uses options)
    Marketplace 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)
  3. Complete the forms and obtain signatures:
    • For DocuSign eligible forms, see How to use DocuSign.
    • For forms not eligible for DocuSign, print the forms and obtain signatures from each authorized individual. 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

*Internal control person information is required on organization forms as of January 2018, for all legal accounts, including accounts for charities, nonprofits, and foundations.

†In the event a trust is a 10% or greater beneficial owner of the legal entity, the Customer Due Diligence Rule defines beneficial owners as the trustees of the trust. At least one trustee needs to be listed on the Organization Account Open and Organization Update forms.

Once you have submitted your organization account request:

  • If forms 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.
  • 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 has completed the customer verification process Tooltip so that funds are available to the client.
  • 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 been granted Add, Change, or Terminate a Manager Authorization by the account holder, and you would like to delay the designation of a money manager, you have 180 days from the date the form is signed to provide Schwab with the designated money manager's information. If you provide Schwab with the necessary information within that time period, Schwab will open the account and provide the designated money manager(s) authorizations for the account, as outlined in the account agreement.

If you have questions about opening an organization account on the managed account platform, 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: Limited Power of Attorney (Investment Advisor LPOA)
Form: Managed Account Marketplace Money Manager Limited Power of Attorney (LPOA)
Form: Managed Account Asset Based Pricing Addendum to Account Applications and Agreements
Form: Managed Account Marketplace TAMP Money Manager Limited Power of Attorney (LPOA)
Form: Managed Account TAMP Asset-Based Pricing (ABP) Addendum
Form: Options Trading and Margin Application
Form: Prime Brokerage Amendment (Account Holder)
Form: Schwab One Account Application for Incorporated Organizations
Form: Schwab One Account Application for Non-Incorporated Organizations
Form: Transfer of Account Form Instructions (TOA / Account Transfer)
Resource: Electronic approvals FAQs

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.

If multiple signers are assigned to a form, in what order do the signers receive and sign the form(s)? 
The order the signers are notified of a document pending 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.

Can I make changes to a DocuSign envelope after it has been sent to my client to sign? 
No. Once all signers have completed their electronic signatures, you will not be able to edit any of the information. However, if you have elected to review the forms prior to submitting to Schwab, you will have an opportunity to review the forms.

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.

Will income be earned on any cash in the account that is not invested?
Yes. View the Cash Features Disclosures Statement for more information.

How to convert a non-managed account to the managed account platform
How to deposit checks
How to deposit securities
How to open an organization brokerage account
How to select investment strategies for managed accounts
How to set up a managed account master
How to use DocuSign®
Introduction to managed accounts
Introduction to turnkey asset management providers through Schwab

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.

*Managed Account Select® (Select) and Managed Account Access® (Access) Fees: Fee includes money manager services and Schwab brokerage and custody services. Your advisory fee is independent of this fee. In addition, certain special service fees (such as wire transfer), charges for transactions executed by other broker-dealers, and dealer markups and markdowns on fixed income securities are not included. Schwab may also make dealer profits on fixed income transactions executed by Schwab on a principal basis. Please click here to view important information about the frequency and the cost of trades executed through broker-dealers other than Schwab.

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 ThomasPartners Strategies). 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 provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus 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.

(1123-3XJM)