In 2019 Schwab announced it was merging with TD Ameritrade. In 2020 the transaction was complete. The integration of the two firms, more specifically their custodial platforms, will be complete in 2024. Our client accounts on the original TDA platform will migrate over to the Schwab platform later this year.
We performed an extensive due diligence on other custodial platforms from 2019-2021, and decided in 2022 to choose Schwab. We’ve been using the platform since September 2022 and all new clients are being onboarded there. It’s working fine for us.
Here are more details about the transition
Schwab and TD Ameritrade (one in the same at this point) continue to make great progress on the integration of their two custody platforms with an anticipated transition date of September 5, 2023
Your relationship with O’Reilly Wealth Advisors will not change as part of the integration.
Schwab will automatically transfer your assets and holdings – there is nothing you need to do until the transfer completes.
You will have a new Schwab account number, so you will need to update any direct deposits or recurring payments that you have set up directly with your bank or other third parties. (That is rare for most of O’Reilly Wealth Advisor clients, and if it applies to you, we’ll be in touch.)
Any instructions set up on TD Ameritrade will transfer over. For a limited period after the transition (60 days), your deposit instructions will continue to be accepted into your closed TD Ameritrade account and moved to your Schwab account through a residual sweep process. To avoid delays in your transactions being posted, you should update your instructions immediately. We’ll assist you with all that, so don’t worry about it.
About the Role of Custody Services
As your advisor, I leverage custody services to help support your investment goals and safeguard your assets through safeguards like SIPC account protection and FDIC insurance.
Selecting an investment advisor is a significant decision. And choosing the right brokerage firm to custody your assets is an important decision for you and me to make together.
With the Integration of Schwab and TD Ameritrade, the combined firm called Schwab will now serve as the custodian for your assets.
Like TD Ameritrade, Schwab is committed to helping independent advisors and their clients by bringing the complementary strengths of Schwab and O’Reilly Wealth Advisors together.
We will have access to even more solutions, technology, and support to dedicate my time to helping you pursue your financial goals.
Transition Timeline
90 days before your transition weekend, early June, you will receive personalized information and calls to action in AdvisorClient.
60 days prior to the transition, early July, you will receive an Account Notification letter from Schwab, letting you know your account will transfer Labor Day weekend. There is no action required from you for your accounts to transition. If you have any questions on materials you receive, you can always call me.
Depending on the account type and features, you may also receive important information from about your account, like details on how margin rates are calculated at Schwab or information about any wrap accounts or asset-based pricing arrangements you have.
28 days before your transition weekend, early August, you will be prompted in AdvisorClient to create your new Schwab Alliance login credentials. If your AdvisorClient credentials qualify, you’ll be given the option to retain your existing user ID or create a new one. Not all of you utilize Advisor Client, so don’t be concerned with this.
Approximately 3 – 4 weeks prior to the transition, early to mid August, you will receive a Key Information packet in the mail from Schwab, which will include your new Schwab account number and other importantdetails about the transition.
Transition weekend (Labor Day Weekend): you will no longer have access to AdvisorClient
beginning at 8:30pm ET on Friday, September 1
Beginning on September 5, you will have access to your accounts in Schwab Alliance
You will receive two statements following the transition: one for your TD Ameritrade Institutional account (typically showing a zero-dollar balance and no positions) and one for your new Schwab account.
Client Online Access Platform (Don’t be concerned if you are not a platform user.)
After the transition, you will have access to Schwab Alliance, Schwab’s secure online client portal. Schwab Alliance makes it easy for you and me to manage your accounts.
Just like AdvisorClient, Schwab Alliance offers access to account balances, positions, and history, as well as secure online access to statements and tax documents
Schwab Alliance also offers advanced features, including: eAuthorization—a fast and secure way for you to approve requests initiated by me, such as money movements, new accounts, and other account maintenance requests.
If you already have AdvisorClient credentials, you may be given the option to retain them. If you share credentials with another account holder, you will each need to establish credentials to access Schwab Alliance.
If you don't have AdvisorClient credentials, we encourage you to set them up now.
You will be able to set up Schwab Alliance credentials approximately one month before your transition weekend, and you will need either your TD Ameritrade or Schwab account number to do so. More information about setting up credentials can be found on the Client Learning Center at welcome.schwab.com/alliance or in the Key Information packet, which you will receive in the mail approximately 3-4 weeks prior to the transition.
Client Learning Center
Schwab has created a website for advisors' clients to help answer any additional questions you may have about the transition.
The site includes additional FAQs as well as more detailed timelines
You can access It at welcome.schwab.com/alliance