Aggregation
This feature must be enabled when aggregating multiple accounts together.
What is Margin
This direction of money movements (IB/OB) can only be setup on one account in an aggregate group.
(This includes SLOAs (journal, check, wire), MoneyLinks, and checkwriting.)
What is outbound
If multiple accounts in the aggregate have outbound money movement SLOAs, then they need to be consolidated to one account and deactivated on the other accounts.
Allows an account holder to borrow funds using their own securities as collateral.
What is Margin
Schwab requires a margin approval letter from this money manager, in order to enable margin.
What is AllianceBernstein
Owners, Grantors/Trustees, SSNs, and Option levels all need to match to be considered this.
What is Like-Titled.
True or False:
Inbound Moneylink instructions are okay on multiple accounts within the aggregate group.
What is True
Clients may choose to utilize margin on their brokerage accounts because of this competitive item that Forvis Mazars has with Schwab.
What is a Competitive Interest Rate
NOTE: clients can see their margin rate on their Schwab Alliance. It will be displayed under the Margin Detail & Buying Power section of the Balances page in Alliance.
The Options Trading and Margin Application is used to enable margin on accounts. What else is this form used for when specifically talking about margin?
What is Disabling Margin
Situation: 2 accounts, both accounts are reported under John's SSN. Owners/Grantors/Trustees are all the same people on both accounts.
1.John Smith & Sally Smith Joint TOD
2.The John and Sally Smith Revocable Trust
Can these accounts be aggregated together?
What is Yes
When margin funds are journaled to an investment account, paying down the margin balance.
This transfers the margin balance (negative balance) to the margin-unsupervised account, where it belongs.
What is a Reverse Journal
True or False:
Forvis Mazars Wealth Advisors chooses to hold the margin balance (the negative balance) in a separate account, separate from the investment accounts, to assist in keeping billing more accurate.
What is True
Situation: Client has no margin balance, and so they want to close out their Margin-Unsupervised account and turn off the margin feature.
After disabling the margin feature and processing the account closure, who else should be informed of this?
What is Ops Central.
True or False:
Multiple accounts within an aggregate group can have an Investor Checking linked to it?
What is False
When processing a complete payoff of a margin balance, we should also look to include This in the transaction.
What is month-end interest.
NOTE: Can call Schwab to confirm what that interest will be.
What use of margin is not allowed at Forvis Mazars WA?
1.Diversifying a Portfolio
2.Purchasing More Securities
3.Paying Off Higher Interest Loans
4.Meeting Personal or Business Financing Needs.
What is Purchasing More Securities
Situation: Client is transferring their accounts out to another custodian. Their accounts are aggregated and they have a margin balance.
Can we TOA out their margin balance?
What is Yes.
1. Move all funds and margin balances to one account. Schwab can assist with moving the margin balance.
2. Remove Margin (deaggregate accounts).
3. Initiate TOA.