Schwab Introduces Accountability Guarantee

Monday, December 9, 2013 6:00 am PST



Public Company Information:

"We believe that lasting client relationships are those with open communication at the center"

SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab, one of the nation’s largest investment services firms with more than $2 trillion in client assets, announced today an “Accountability Guarantee” for clients enrolled in participating investment advisory services.* Under the Schwab Accountability Guarantee™, clients enrolled in a participating investment advisory service can request a complete refund of their program fees from the prior quarter if, for any reason, they are not happy.

“We believe that lasting client relationships are those with open communication at the center,” said Charles R. Schwab, founder and chairman of Charles Schwab Corp. “People deserve more than a ‘just trust me’ approach. Investors hold themselves accountable for achieving their goals in life, and deserve a financial services provider who is equally committed to helping them reach their goals. To us, accountability means delivering advice in a way that puts clients’ needs first, encouraging clients to engage with us in the investing process, openly discussing the reason for investment recommendations, being clear about costs and fees, continually asking for feedback and working to make things right when needed. It means that at Schwab, we stand behind what we say and what we do.”

According to Schwab, nearly nine out of 10 (89 percent) investors in a proprietary panel said that a financial services firm’s accountability is very important to them. A large majority (65 percent) said that lack of accountability would prompt them to reconsider their relationship with a financial firm or professional, and 72 percent felt that the current level of accountability in the industry is insufficient.

The Accountability Guarantee applies to the following participating investment advisory services:

  • Schwab Private Client™ – An ongoing relationship with a dedicated Charles Schwab & Co., Financial Consultant with non-discretionary advice provided by Schwab Private Client Investment Advisory, Inc.
  • Schwab Managed Account Connection Strategies
  • Schwab Managed Portfolios™ – Diversified portfolios of either mutual funds or ETFs designed for a range of investment strategies and managed by Charles Schwab Investment Advisory, Inc.

More information about the Schwab Accountability Guarantee is available at

About Charles Schwab

At Charles Schwab, we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at Follow us on Twitter, Facebook, YouTube, LinkedIn and our Schwab Talk blog.

About the Schwab Accountability Guarantee

At Schwab, we believe that every investor deserves accountability. The guarantee provides that if for any reason a client is not happy with one of our participating investment advisory services, we’ll refund the program fee from the previous quarter. While it's no guarantee against loss, and other fees and expenses still apply, we stand by our word and will work with the client.

*The Accountability Guarantee applies to the following investment advisory services (“Participating Services”) and associated program fees: Schwab Managed Portfolios™ (SMP), Schwab Private ClientTM (SPC) and Managed Account Connection (Connection®) accounts managed by investment advisors affiliated with Charles Schwab & Co., Inc. (Schwab): Charles Schwab Investment Management, Inc. (CSIM), Windhaven investment Management, Inc. (Windhaven®), and ThomasPartners, Inc. (ThomasPartners®).

The guarantee does not apply to (i) accounts managed by investment advisors that are not affiliated with Schwab; (ii) accounts managed by Schwab-affiliated advisors outside of the SPC, Connection, and SMP programs; or (iii) any other product or service made available by Schwab or its affiliates. SPC, SMP, and Connection are wrap fee programs sponsored by Schwab.

If at any time or for any reason you are not completely satisfied with a Participating Service, at your request Schwab will refund the associated program fee for the previous calendar quarter applicable to the Participating Service. The program fee is a percentage of the eligible assets in your Participating Service account(s). You will receive a credit to your Participating Service account(s) within approximately four weeks of your request. No other fees, commissions, charges, expenses, or market losses will be refunded. If Schwab is unable to address your concerns after consulting with you and refunding your program fee, Schwab will work with you to help meet your financial goals. Schwab reserves the right to change this guarantee in the future after providing notice. For additional information regarding associated program fees, please see the disclosure brochure for the Participating Service, available at the time you enroll or upon your request.


Windhaven strategies, both versions of the ThomasPartners Dividend Growth Strategy and strategies managed by CSIM are available through Schwab's Managed Account Connection program. Please read Schwab's Disclosure Brochure for important information and disclosures relating to Schwab Managed Account Connection and Schwab Managed Account Services™. In addition, please refer to the Windhaven, ThomasPartners or CSIM Form ADV Part 2A for more information. Schwab makes available other equity strategies in its managed account programs that focus on dividend-paying stocks, including strategies that are managed by firms that are unaffiliated with Schwab.

Portfolio management for Windhaven, ThomasPartners and CSIM managed account strategies is provided for by Windhaven, ThomasPartners and CSIM, respectively. All three are registered investment advisors and affiliates of Schwab.

Diversification strategies do not ensure a profit and do not protect against losses in declining markets. Investments in managed accounts should be considered in view of a larger, more diversified investment portfolio.

Please read Schwab's Disclosure Brochure for important information and disclosures relating to Schwab Managed Portfolios and Schwab Managed Account Services. In addition, please see the manager’s (Charles Schwab Investment Advisory, Inc.’s) Form ADV Part 2. Portfolio management for SMP strategies is provided by Charles Schwab Investment Advisory, Inc., a registered investment advisor and an affiliate of Charles Schwab & Co., Inc. (“Schwab”).

Through its operating subsidiaries, The Charles Schwab Corporation (NYSE: SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,, and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; compliance and trade monitoring solutions; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at and

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

Investing involves risk, including possible loss of principal.

Please note that there are certain eligibility requirements for working with a dedicated Financial Consultant.



Charles Schwab
Michael Cianfrocca, 415-667-0344
Katherine Clark, 212-704-4491

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