IPO Servicing
What can IPO Services help with?
Provide information and answer complex questions about IPOs at Schwab.
When should IPOs be discussed with clients?
Only when clients ask about it (Reactively)
What is the minimum Household balance clients must have to be eligible?
$100k on the day prior to the end of the COTP window
What types of orders can clients enter after IPOs hit secondary market?
Blue – NO Buy Market
Green - Any
When should you consult IPO Services?
When a client believes they are eligible, but Schwab.com says they are not and they do not appear to meet any ineligibility criteria (check resources, ask discovery).
What is something reps should encourage clients to access during an IPO?
Read the prospectus
What are the steps to participate in an IPO at Schwab?
1.Clients submit COTP
2.Clients affirm shares
3.Clients receive allocations
What are some suitability tags a client must have?
Client must have speculation as an investment objective and must be good or extensive investment knowledge.
What types of orders are not accepted on the first day of trading on the secondary market?
Stop and Stop Limit
Short Sales
ROE Market Orders
When a client has a question about the eligibility survey, how should you help them?
Help them find and understand the questions. Do NOT coach their answers.
What is the proper response when clients ask about COTP volume?
COTP volumes cannot be disclosed
What is the marginability of IPO shares?
IPO shares are NOT marginable for 30 days after IPO date. This includes Allocated shares or shares purchased on secondary market.
What is something that would make an individual/account ineligible for IPOs?
If they, a family member, or beneficial owner are a FINRA restricted individual.
Generally, when are IPO shares available for short selling/options?
After 30 days
What is an important enhance piece to mention to a client when they submit their COTP?
Remind them of the Affirmation window
How should reps respond when clients are upset about IPO eligibility?
Empathize and deescalate, reach out to IPO Services if client believes they are eligible when site tells them no
What is Schwab’s Anti-Flipping policy?
Schwab does not have an anti-flipping policy
What happens if an ineligible person participates in an IPO?
They could face disciplinary action from FINRA, Schwab, or their employer.
What type of buying power would clients need to use for IPO shares?
Allocation – $25k uncleared or 2x net liquidity (greater)
Secondary – Cleared funds
(TAP/Available Funds)
"I am interested in the IPO, but I want to read the prospectus first. Where would I find that?"
On the IPO calendar on Schwab.com
through mail via JW/TRR IPO request tool (may not be delivered in time to participate)
"Why did I not get any shares? I submitted a COTP and Affirmation."
Deescalate and affirm emotions. Remind clients that IPOs are not guaranteed and allocations are dependent upon many factors out of our control. Offer to show the client where they could place an order to purchase shares on secondary market.
Client calls and asks "why does the website say I am not eligible for IPOs?" (list 2 possible solutions)
Check household balances, Employer status, ask about beneficiaries and trading authorities, check suitability tab.
"I want to buy as many shares as I can. How much can I spend?"
Non-marginable funds (TAP/Available Funds/Options BP)