Dear Advisor,

As we get closer to the transition of the TD Ameritrade Institutional (TDAI) business to Schwab Advisor Services (Schwab), there are a couple of things you need to know about upcoming communications to your clients and additional steps you will need to take beginning May 19 when opening new accounts with TDAI.

For Current Client Accounts – No Action Needed

At the end of June 2023 (approximately 2 months before conversion), we will send an Account Transition Notice (also known as the Negative Consent Letter) to your existing clients. This letter provides details about the transition, including timing, what to expect, how to opt out of transferring to Schwab, disclosures, and information about what your clients’ Schwab cash sweep feature will be once their account transitions. Your existing clients do not need to take any action regarding the negative consent, but you will need to take action for new accounts. The letter is a draft as it does not include the cash rates. The final version that will be sent to your clients will include cash rates as of April 30, 2023.

Other things to note:

In preparation for this mailing, the list will be pulled on May 18. So, starting on May 19 through August 18, you will need to have any new account owners sign a Consent to Transfer Letter (also known as a Positive Consent Letter) and submit it along with any additional new account paperwork.

For New Accounts: Action Needed Beginning May 19

For any new accounts you open at TDAI from May 19 through August 18 (between August 18 and Labor Day, no new accounts can be opened at TDAI), you will need to get a signed Consent to Transfer letter from your client. This includes any TD Ameritrade Retail investors who decide to have you manage their account and therefore get moved from Retail to Institutional.

Any time after May 19, a signed Consent to Transfer letter will need to be submitted along with the new account paperwork, even for accounts that are already in progress. If the signed Consent to Transfer letter is not submitted along with the signed account application, the account will be considered "not in good order."

All new account applications have been appended to include the Consent to Transfer letter, so you do not need to attach it separately. After May 19, please discontinue using any prior versions of the new account application that you may have saved locally.

Updated account applications with the Consent to Transfer letter will be available by May 10 in the following places:

You can find more information about both the Account Transition and Consent to Transfer process in the Transition Planning Guide on the Hub and at our upcoming virtual events.

If you are an advisor managing a Self-Directed Plan Services (SDPS) account or have clients with a Retail account that you don’t manage

SDPS Retirement and Health Savings Plan/Program sponsors and participants will also receive a similar Account Transition letter. However, they may receive this letter at a different time than your Wealth Management clients.

One more thing to note

We will send another transition-related communication to all your clients in early August, about one month before transition weekend. This communication will include a Key Information packet that will provide your clients with their new account number, important details about the transition, and prompt them to create a Schwab Alliance login ID and password, which they will need to access their account information after the transition.

If you have any questions, please reach out to your Service Team.

Sincerely,

John V. Tovar

Managing Director, Wealth Management Services

TD Ameritrade Institutional