Managed Account Platform Section

How to open a personal brokerage account on the managed account platform

How to open a personal brokerage account on the managed account platform

Personal brokerage accounts may be opened on the Managed Account Select® ( Select Tooltip ), Managed Account Access® ( Access Tooltip ) and Managed Account Marketplace® ( Marketplace Tooltip ) platforms.

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 personal brokerage accounts for clients new to the Select, Access, or Marketplace platforms using the account open digital workflow available through the Account Management tab.

Required

All accounts
  • Your firm name, contact information, and managed account master
  • The name of the money manager firm and investment strategy
  • Account holder's name, home address, identification number Tooltip , birth date, telephone numbers, citizenship status, employment status, and occupation; and the employer's name, business address Tooltip , and business phone number
  • Account holder's federal income tax rate, net worth, liquid net worth, and approximate annual income
  • Funding for the account (meeting required account minimums) through an internal transfer (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)
In addition to the required information above, the following platform-specific information is required:
Select or Access accounts
Marketplace accountsMoney manager's managed account master (obtained from the money manager)

Conditional

All accounts
  • If opening a funding/additional account: your firm's non-managed account master
  • If funding the account through an internal transfer (journal) entry: the client's Charles Schwab & Co., Inc. ("Schwab") account number
  • If any authorized individual or control person is affiliated with or employed by a stock exchange; a member firm of an exchange or FINRA; or a municipal securities broker-dealer and FINRA Rule 3210 applies, a FINRA Rule 3210 Consent Letter
  • If the 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.
  • If adding the Schwab account to an existing quarterly trade confirmation report subscription: the Schwab account number(s) in the existing subscription
  • 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 the 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)
In addition to the conditional information above, the following platform-specific information is required if certain conditions are met:
Select or Access accounts
  • If electing to group Schwab accounts for fee* calculation purposes: the affected Schwab account numbers
  • If securities are used to fund the account and are missing cost basis: a completed Cost Basis Edit Form
Marketplace accounts

To open a managed account using eAuthorization

  1. Go to the Account Management tab and choose the Open and fund an account button under the Digital workflows header.
  2. You will see a screen listing all the account types that can be completed with the digital onboarding workflow. Click Open and Fund an account.
  3. Select the client(s) you are opening the account for so they can be added to the digital envelope. You can also add a new-to Schwab client. Once the client(s) has been added, proceed to the next step.
  4. Select or confirm the master account. You will have to choose your Select, Access, or Marketplace master for the managed account options to populate. 
    Note: Eligible authorizations tied to the selected FA master (such as options trading, wrap fee billing) will automatically be available for the digital envelope. If you do not see Managed Account options as a selection after choosing a master account, your firm has not signed the necessary agreements. Please see How to set up a managed account master.
    • For Marketplace: Click "Yes, from Managed Account Marketplace®" under "Will you be assigning a money manager for separately managed accounts". Add the money manager and investment strategy, then choose from the available account types. Check the checkbox to link BT or SL master accounts, then click View/Edit to select the accounts that should have access. 
    • For Select/Access: Select the appropriate program (Select or Access) under "Which managed account program will you use?" Add the money manager and investment strategy, then choose from the available account types.
  5. Assign the primary and additional account holder roles, adding more account holders as needed. Choose the additional features you want to add to the account. You will make these selections for each account to be included in the digital envelope. 
  6. If you are opening only one account in the digital envelope, you will proceed to the account features and preferences step. If you want to add more accounts to the envelope, click the Add another account link.
    • For each account in the envelope, you will repeat the previous steps of selecting the master account, account type, account holder roles, and features and funding options. 
  7. Next you will complete the required information and select features for each account you have added including trading and disbursement authorizations, management fees, and other important information about the account. 
    Note: For Select and Access accounts, management fees and issuer communications will default and cannot be amended.
  8. On the next screen, you will review the managed account details and if you are using a trading master account choose whether advisor authorization to add, change, or remove a money manager should be added to the account. Non-trading masters will not get this option. 
  9. On the review screen, validate all the account information and click continue. 
  10. Add any advisor documents for client signature and/or review and proceed to the next step.
  11. Finalize and review the envelope. Select whether you would like to receive status notifications and if you’d like to review the envelope before submitting to Schwab. Once reviewed, send to client. 
  12. You will receive a confirmation screen. Choose whether to open another account, return to Account Management or go to the manage Schwab envelopes page. 
  13. For next steps see the What can my client expect? and What's next? section of How to use digital onboarding for eAuthorization.

eAuthorization is the fastest and preferred method for account opening. To open a managed account using paper forms, see information below.

  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.
Select or Access managed accounts
  • Managed Account Select/Access Account Application (multiple forms will appear when selecting this link, choose this form)
  • Options Trading and Margin Application (if the chosen investment strategy uses options)
Marketplace managed accounts
  • Managed Account Marketplace Account Application (multiple forms will appear when selecting this link, choose this 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)
Marketplace managed accounts using TAMPs
  • Managed Account Marketplace TAMP Account Application (multiple forms will appear when selecting this link, choose this form)
  • Managed Account 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 client signatures:

  • For forms eligible for DocuSign, see How to use DocuSign.
  • For forms not eligible for DocuSign, print the forms and obtain signatures from each account holder.

     4. Send the signed forms to Managed Account 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 have submitted your request:

  • Schwab 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 the forms were submitted using DocuSign, see the What's next? section of How to use DocuSign.
  • If you have questions about opening a personal brokerage account on the managed account platform, contact the 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 Account Application
Form: Managed Account Marketplace TAMP Account Application
Form: Managed Account Select/Access Account Application
Form: Managed Account Select/Access Investment Restrictions Form
Form: Managed Account Select/Access Pay Income Form
Form: Managed Account TAMP Asset-Based Pricing (ABP) Addendum
Form: Options Trading and Margin Application
Resource: Cash Features Disclosure Statement
Resource: Managed account clickable guide

If my client makes changes to a digital envelope, will I be notified of the changes?
Yes. Once all signers have authorized the digital envelope, you will see a message on the Manage Schwab envelopes screen that states, "You can review client changes first." 

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

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

Can any type of account be opened as a managed account?
No. 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. Note: 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 the Managed Account Operations at 877-595-6345 or via a Schwab Advisor Center service request.

How to convert a non-managed account to the managed account platform
How to select investment strategies for managed accounts
How to set up a managed accounts master
How to use DocuSign®
Introduction to managed accounts
Introduction to the managed accounts communications library
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.

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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