Years ago, when I first started processing custodial forms, it seemed like it took hours. Now it takes half the time because the systems are improving, and I’ve become familiar with the intricacies of the different forms needed to open accounts and perform account maintenance. 

Here are the top 5 tips I’ve gleaned from Schwab account forms that I want to share with you:

1.    Track process changes and proactively call Schwab. Custodial paperwork requirements are constantly evolving, and failing to keep up with these changes can result in processing delays. As a result, I’ve started keeping track of changes and different processes to ensure that processing delays are minimized.  I will call Schwab to confirm the requirements for less frequent account openings, such as company retirement accounts, and confirm whether the process has changed. This only takes a few minutes and saves time and effort by eliminating the back and forth with the client if the process changes and they need to sign additional paperwork.

2.    Use the Schwab digital workflow. I often use Schwab’s digital workflow to open accounts and do the transfer, as it is easy for the client to fill out the account opening, move money, and transfer forms. One area where I still use DocuSign is when we need to add per stirpes or per capita to the account, as Schwab Digital workflow does not allow for this.  This is supposed to change soon, but for now, I have reverted to DocuSign in these instances, eliminating the need for the client to sign an additional form.

3.    Have the advisor or Grunbeck Financial Services confirm the form before sending it to Schwab. This quick double check helps ensure there are no mistakes. If the client signs, but there is something different after the fact, it will allow us to cancel before going to Schwab. We have found it very difficult to prevent a transfer from happening if the client has confirmed but wants to change it after the form is sent, to have the assets liquidated or transferred in kind.

4.    Be aware that you can perform internal transfers by moving assets, not just cash. This has been a new feature over the last year or so, which allows us or the advisor to move securities in kind instead of requiring the client to sign a form. This has reduced paperwork, as the client previously had to sign.

5.    Have the client use the “Move Money” tab. Recently, the client has found the process of approving an internal transfer through the ‘Move Money’ tab to be easier and more seamless. In the past, it was difficult for the client to find the notice to sign, but recently it has seemed more straightforward to find the message to sign. This could be that Schwab has gotten the process down better, or the client now knows where to look. Regardless of the situation, it has been a better experience for both the client and the advisor to approve internal transfers.

In conclusion, having an outsourced provider handle account forms daily across various firms, and the provider being able to adjust processes in response to Schwab's changes, has enabled a more seamless client experience with fewer issues and fewer inquiries about additional paperwork to sign. Additionally, being able to remain flexible in your processes to accommodate changes will help reduce the use of incorrect forms or not using all forms to open an account that you may not open as frequently.