As a financial advisor, the custody of your clients` assets is of utmost importance. That`s why partnering with a reputable custodian is crucial for the success of your Registered Investment Advisor (RIA) business. One of the most prominent names in the custody industry is Charles Schwab.

If you`re considering working with Schwab as your custodian, it`s essential to understand the Schwab RIA custody agreement and what it entails. Here are some key points to keep in mind.

First and foremost, the Schwab RIA custody agreement outlines the terms and conditions of your custodial relationship with Schwab. It details the services that Schwab will provide, the fees you`ll pay, and the responsibilities of both parties.

One of the critical services that Schwab offers as a custodian is the ability to hold and safeguard your clients` assets. Schwab also provides access to a range of investment products and tools, including mutual funds, ETFs, and managed accounts, as well as research and trading platforms.

In terms of fees, Schwab charges a custody fee that varies depending on the size of your business and the type of assets you hold. There are also other fees, such as transaction fees and account maintenance fees, that may apply.

As an RIA, you are responsible for ensuring that your business complies with all applicable regulations. The Schwab RIA custody agreement details the obligations of both parties when it comes to compliance. Schwab provides support and resources to help you meet your regulatory responsibilities, such as providing necessary reports and disclosures.

When it comes to account access and security, the Schwab RIA custody agreement provides guidelines for how you and your clients can access their account information and make transactions. Schwab uses strict security measures to protect client data, such as two-factor authentication and encrypted communications.

In summary, the Schwab RIA custody agreement outlines the terms and conditions of your custodial relationship with Schwab. It`s vital to understand the services provided, fees charged, and compliance responsibilities of both parties. By partnering with Schwab, you can benefit from their reputable custodial services and gain access to a wide range of investment products and tools.