Welcome to the ongoing blog from The Pacific Financial Group with updated information for both financial advisors and individual investors regarding the Schwab-TD Ameritrade Merger coming later this year. Additional resources are included below. We encourage you to review the information provided and hope it helps prepare you for the transition ahead.

About The Pacific Financial Group

Founded in 1984, The Pacific Financial Group, Inc. (TPFG) is a SEC registered investment advisory firm and dynamic wealth management innovator that serves the group retirement market. The firm was an early pioneer in the evolution of Self-Directed Brokerage Account Management (SDBA) within individual investor workplace 401(k), 403(b), and 457 retirement plans. Strategy PLUS is the firm’s flagship Turnkey Asset Management Platform that offers a unique blend of investment choice, expertise, and sophisticated modeling not found in traditional retirement plans. Today, TPFG has over 20,000 accounts and manages total assets of over $3 Billion. Both Schwab and TD Ameritrade are leading 401(k) providers for employers around the country, with TPFG Model Portfolios available to investors through both retirement services platforms.

August 01, 2023 - UPDATES FROM TDA INSTITUTIONAL 

• At the close of business, new account opening and account opening, and account maintenance will no longer be available August 18
• Incoming transfer requests received after August 25 are not guaranteed to be completed before the conversion to Schwab. Outgoing TOAs (both full and partial transfers) that are already in progress by August 25 will continue to completion August 25
• Final day of trading and money movement at TDA September 1
• Conversion complete! Account access begins on Schwab platforms on September 5

TDA clients will need to provide consent to have their accounts transitioned to the Schwab platform.

Charles Schwab-TD Ameritrade Acquisition | Institutional Information | Charles Schwab

UPDATES FOR TDA SDBA

• Retirement Client Communications I Chales Schwab 
• TD Ameritrade Self Directed Plan Services (SDPS) transition to Schwab communication timelines I Charles Schwab

Below are some key dates. 

What you need to do:

• Participant Communication: Transition reminder and Schwab.com credential set up on August 8
• Paperwork cutoff - Last day to accept paperwork to add 3rd party to an account (Advisor Authorization form, Limited Trading Authorization, etc.) August 11
• New Participant Account paperwork cutoff August 14
• New Participant Accounts cutoff - last day to open new participant accounts. August 18
  • Participant Account Changes - last day to make changes to the participant accounts.
  • Reopen Participant Accounts - last day.
  • Plan changes - last day to make changes to plans. 
• Transfer paperwork cutoff August 21
  • Last day to accept IGO individual account transfer paperwork.
  • Last day to accept IGO letters of release (LORs) for deconversions.
• Participant Communication: Final Credential Reminder August 23
• ACATS cutoff - last day to initiate ACATS and receive ACATS from contra firms August 25
  • Last day to add a third party to an account.
• Participant Communication: Final transition reminder August 30
  • Provider Communication: How to Reach us during the Transition.
• Final day of trading at TDA September 1
• Account access begins on Schwab platforms on September 5
• Schwab/TDA plan to transition all Self-Directed Plan Services (SDPS) accounts to Schwab over Labor Day Weekend.
• Effective May 19^th please discontinue using prior versions of the TDA new account application that you may have saved locally.
• TDA will stop accepting new accounts on August 18. Between August 18 and Labor Day, no new accounts can be opened at TDA Institutional.

VIEW ACTION NOTICE FROM SCHWAB-TD AMERITRADE INSTITUTIONAL

JUNE 14, 2023 - UPDATE FROM TD AMERITRADE INSTITUTIONAL

Dear Valued Advisor:

On August 8, we sent you an email giving you an update regarding the Asset-Based Pricing (ABP) fee for the upcoming billing cycle.
You are being sent this communication because our records show that some of your clients have an ABP fee structure on their account.

As a reminder, at TD Ameritrade Institutional (TDAI), we bill on a quarterly basis. Because conversion is happening in the middle of the quarter, we will be doing a one-time ABP billing on August 31, 2023, for just two months (July and August) of the third quarter.

Things to Know About Your SDPS Accounts’ Transition to Schwa

■        July’s accrual will be based on the normal July 31, 2023 month-end eligible assets. 

■        August’s accrual will be based on eligible assets on August 30, 2023, instead of the normal August 31, 2023, month-end.

■        You or your clients will be billed on August 31, 2023. The amount will include the annual minimum if applicable and be prorated accordingly.

■        Plan sponsors received communication in early May that included timing and details for the conversion and Schwab-specific information, such as account agreements and details about Schwab’s cash features. They will also receive a 408(b)(2) fee disclosure notice about one month prior to the transition.

We also wanted to remind you that at the end of August, we will be sending your non-wrap clients at TDAI a letter and a copy of Schwab Advisor Services’™ (Schwab) ABP pricing addendum (ABP addendum), which includes important information regarding calculation and billing methodologies, chargeable assets, exclusions, and other important terms.

■      Since the letter includes the specific ABP fee schedule you agreed to, we are not including a copy in this email.

■      If you need a copy of your Schwab ABP pricing agreement or ABP addendum with your specific ABP fee schedule, please reach out to your Relationship Manager.

If you want a list of impacted accounts, please reach out to your Service Team.

What you need to know about ABP Billing once your clients’ accounts transition to Schwab

■      At Schwab ABP fees are generally billed monthly in arrears, instead of quarterly.

■      The billing period at Schwab begins on the 23rd day of each calendar month and runs through the 22nd day of the following month.1

■      Schwab will bill you or your clients’ accounts for the period September 2, 2023, through September 22, 2023, and the fee will also be prorated.

If you have questions about ABP at Schwab, please contact your Relationship Manager.

Thank you for being a valued client. We appreciate your business and look forward to continuing to work with you.

Sincerely,

John V. Tovar

Managing Director, Wealth Management Services

TD Ameritrade Institutional

AUGUST 1, 2023 - UPDATE FROM TPFG

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.

Talk To Your TPFG Representative or Your TPFG Client Services Rep

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.