Schwab Presents Detailed Timeline for TD Ameritrade Integration
At his IMPACT conference, Schwab executives laid out a much more detailed timeline for advisors who will transition from TD Ameritrade than he has previously shared.
Last week, general manager Tom Bradley said the so-called “conversion day” would take place over Labor Day weekend 2023. By the following Tuesday, he said, all advisors and clients will be on the Schwab platform, and he expects that the TD Ameritrade Institutional name and brand will be permanently retired.
During an IMPACT session, Managing Directors Jessica Heffron and John Tovar gave advisors a roadmap for the coming months.
By the end of January, advisors will be asked to sign an Investment Advisor Service Agreement (IASA), nominate their Corporate Security Administrator (FSA), and should begin their planning process for an upcoming contract at summer course. Upon receipt of signed custodial agreements from the companies, Schwab will begin the data mapping process for each company.
Between June and August, advisors will be asked to complete setup by accessing Schwab’s platform, reviewing converted data and master accounts, assigning employee credentials, and confirming data mapping. At this point, advisors will be able to preview the Schwab Advisor Center, set up credentials, and view cross-reference files.
Heffron said companies should avoid making major changes over the summer, including mergers and acquisitions; changes to the configuration of TAMP, the fund manager or the outsourcing agent; and the implementation of new technologies.
And, she noted, the platform’s functionality will be limited during this transitional period.
“It’s like you’re building a house,” Heffron said. “We are trying to reproduce this house on the Schwab side. It will be an active construction site. You can visit it. You can look around. But it is not operational. It’s not functional.
Heffron said Schwab will take a snapshot of the TD Ameritrade advisor setup in early June.
“Once we get that snapshot, we’re going to start that construction on the Schwab side,” Heffron said.
After that, advisors can explore and learn the Schwab Advisor Center and get to know their Schwab team.
“We try to make this as non-disruptive as possible,” Heffron said.
Tovar said that during the summer months, businesses could continue to conduct normal day-to-day operations at TD Ameritrade, including transactions, money transfers and account opening.
“Obviously you can’t sit still for three months,” Tovar said.
However, Tovar said companies will have to shut down some operations in preparation for the change.
“Two weeks before Conversion Weekend, we will be shutting down new accounts or updating existing accounts on the TD Ameritrade platform,” Tovar said. “A week before the actual conversion weekend, all external transfers will have to stop. We have to stay in sync.
Tovar said certain essential activities, including trading and moving, will be available until the end of activities on the Friday before the integration.
Finally, on September 5, 2023, TD Ameritrade accounts and assets will migrate to Schwab’s platform. At this point, the transition will be complete and advisors can begin exploring Schwab’s offerings and resources.
While Schwab’s financial acquisition of TDAI closed in October 2020, Bernie Clark, Head of Schwab Advisor Services, acknowledged at a press conference in June 2021 that the full transition and technology transition would likely take all of range of the company’s original estimate.
“We said it was a 30-36 month effort to get to integration,” Clark said. “While we’re still on that timeline, it’ll be later towards the months spectrum. Probably closest to the final side of 36.”