Fiduciary Advisor
I signed up with a fiduciary advisor last November 2019, we transfer some of my accounts from Fidelity to Schwab. I just got an e-mail from him that he would like me to sign another signature card. I believe that the account will still be held at Schwab. The following is part of the email.
While Schwab will open the new account without the Signature Card, having this card on file with Schwab will help prompt processing of any future transactions initiated with a handwritten signature. Certain requests to disburse funds may not be processed without a Signature Card. If you requested checks and Visa® debit card(s) for the new account, they will not be mailed to you, until Schwab receives the Signature Card. Why do I need to sign another signature card?
Terry Says
OK, let me back up a minute — because I’m always skeptical. Where did you find this FIDUCIARY advisor? Did he/she sign a pledge to fully disclose all fees, commissions, and other costs? And to put your interests first? That should be IN WRITING on company letterhead.
Second, how are you paying this advisor? Should be an annual fee of less than 1.5% of assets — and NO commissions or hidden fees.
Please check out his/her disciplinary history at Finra.org. Here is a link to the page for BrokerCheck, where you can do a free background check.
Many advisors use Schwab as a record-keeper. You are entitled to contact Schwab directly. Did you open a money market deposit account on which you will write checks? That would require a signature card. That’s exactly what the paragraph you posted looks like. Just be sure you are NOT signing a power of attorney, giving this advisor unlimited discretion to make decisions or withdraw money.
