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Preparing for the Schwab-TD Ameritrade Merger

Preparing for the Schwab-TD Ameritrade Merger

February 28, 2023
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We wanted to provide some information in advance of the merger between Schwab and TD Ameritrade later this year.

While many details will be forthcoming, below is some pertinent information that Schwab has provided thus far. We will continue to keep you updated throughout the year to ensure you and your clients have a seamless experience.

Also, attached for reference is the TD-Schwab Transition Planning Guide that Schwab has provided us to help prepare for the integration.

  • Transition Date: The Schwab / TD Ameritrade merger conversion is expected to take place Labor Day weekend 2023 (9/2-9/5). However, there will be numerous activities occurring between now and the conversion date. We do not know exact dates, but we will communicate regularly to keep you apprised.
  • Client Accounts: The account structure, types, and registrations are very similar between TD Ameritrade and Schwab, so the majority of data, preferences, and features will convert to Schwab with no additional paperwork or steps by you or your clients. In those limited instances where account type, registration, or information cannot be automatically mapped over, Schwab will contact TPFG and we will coordinate with you, as required. Schwab will automatically convert all supported account types and registrations to a similar account and setup at Schwab. Each TD Ameritrade account number will be mapped to a new Schwab account number. Clients will receive a new Schwab eight-digit account number to replace each nine-digit TD Ameritrade account number.

  • Third-Party Data Feeds: Schwab is working with integrated providers to prepare for the transition and enable you to access the same type of data and integration that you have today through Veo One. Schwab will provide the third-party vendors your firm has authorized with a cross-reference file, which will help them convert the former TD Ameritrade account numbers to the new Schwab account numbers when your firm is transitioned over. You do not need to take any action.

  • Rep Codes/Master #'s: Both Schwab and TD Ameritrade provide advisors with a way to group or organize end-client accounts. At TD Ameritrade, end-client accounts are organized by rep codes, whereas Schwab uses master accounts. They will be converting all active rep codes to master accounts.

  • Client Communication: To make the transition from TD Ameritrade to Schwab as seamless as possible for your clients, Schwab has designed a client-friendly experience to guide them through the process. Schwab will provide you with the tools and resources you will need to stay informed and answer client questions that may arise. Your clients will receive several mandatory communications from Schwab to keep them updated about when changes are scheduled to happen. We will make sure that you are notified, in advance, of anything that will be sent to your clients.

  • Client log-in credentials: We suggest that your clients enroll in AdvisorClient.com. Approximately 90 days before the transition, clients will receive personalized information and calls to action in AdvisorClient.com to help them prepare for conversion. ~28 days before the transition a notification in AdvisorClient.com will inform clients when it is time to create their Schwab Alliance credentials on SchwabAlliance.com. Once their credentials are created on SchwabAlliance.com, clients will get a confirmation of which accounts will move to Schwab, as well as resources to help them learn more.

  • Move Money Instructions: Most standing move money instructions used in the past three years preceding account conversion will automatically be converted. In those limited circumstances where existing instructions can’t be automatically transferred, Schwab will provide us with instructions for choosing an alternative, which we will coordinate with you.

  • Asset Based Pricing (ABP) & Transaction Based Pricing (TBP) changes: We anticipate that there will be changes to ABP/TBP pricing. Although asset-based fees may be increasing in some situations, there is zero fee charged on NTF funds and ETFs.

  • Submitting TDA forms: Please discontinue submitting TD Ameritrade forms after 7/31/23. Starting 8/1/23, TPFG will only accept Schwab documents as TD Ameritrade will be unable to process documents.

Should you have any questions at all, please do not hesitate to contact our Client Services team at 800-735-7199.

DOWNLOAD: TD Ameritrade Transition Planning Guide

SCHWAB CLIENT INFORMATION HUB

TD AMERITRADE TRANSITION UPDATE

The information presented is believed to be accurate but has not been independently verified. TPFG makes no warranties as to the accuracy of the information or any representations made or implied. Articles cited/linked to are the express opinion of the third-party author. There are no affiliations between TPFG and any third-party links. All information may be changed without notice. The information should not be construed or interpreted as an offer or solicitation to purchase or sell a financial instrument or service and should not be relied on or deemed the provision of tax, legal, accounting or investment advice. Past performance is not a guarantee of future results. All investments contain risks to include the total loss of invested principal. Diversification does not protect against the risk of loss.