Schwab Advisor Services serves independent investment advisors and includes the custody, trading and support services of Schwab. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. Brokerage services provided exclusively by TD Ameritrade, Inc. Custody, directed trustee, record keeping, plan design support and plan administration are provided by TD Ameritrade Trust Company, a non-depository trust company. TD Ameritrade Institutional, Division of TD Ameritrade, Inc., & TD Ameritrade Clearing, Inc., members FINRA/ SIPC. Market volatility, volume and system availability may delay account access and trade executions. All other margin accounts are ineligible at this time. Currently, only cash and margin IRA accounts are eligible to enroll in the program. Shares on loan often support short trading strategies. TD Ameritrade Institutional splits income 50/50. The annualized lending interest rate is a portion of the total interest earned on the loaned shares. Each security will have its own lending rate based on demand. In the unlikely event of TD Ameritrade Institutional filing for bankruptcy, you can draw on this collateral, which may be the only source of resolution. However, TD Ameritrade Institutional will maintain cash as collateral, which will amount to at least 100% of the loan. Shares loaned out are not protected by SIPC. TD Ameritrade Institutional may terminate a loan at any time. Demand and pay rates vary by security and over time. **Not all securities will be eligible to loan. Clients will be required to review and acknowledge the Master Agreement prior to enrollment. You must meet specific suitability and appropriateness requirements in order to be eligible to enroll in the program. It should also be noted that employer-sponsored retirement plan accounts like 401(k)s are not eligible under ERISA rules. We anticipate margin accounts to be eligible in the second phase of the program, but there is no ETA at this time. Currently, only cash accounts are eligible to enroll in the program. *Enrollment in the program is subject to approval. Interest rates and demand will vary by security over time. Market Dictates Demand: Whether or not securities are borrowed depends on their volume and lending market demand. However, if clients would like to reclaim them before the record date, it's easy to regain voting privileges. Waived Voting Rights: Shares will be lent out and clients will temporarily forfeit voting rights to the borrower. It's important to remember that dividend income is taxed at a different rate. Tax Implications: After you lend out a dividend-paying security, your clients will receive cash-in-lieu of their regular dividend payment. You can withdraw on this collateral in the unlikely event of a default in which TD Ameritrade Institutional does not return borrowed securities. SIPC: The SIPC doesn't cover shares on loans, which are secured by 102% collateral provided by TD Ameritrade Institutional and held at a third party bank. Typical Investment Risk: All inherent investment risks apply and share performance is subject to market fluctuation.
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