Charles Schwab CorpSCHW
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Schwab raises minimums and restricts new portfolio margin accounts, limiting access to tax-aware strategies.
Impact on stocks 1
Digital Finance & Tokenization
Charles Schwab CorpCharles Schwab Corp. is imposing stricter limits on tax-aware long-short accounts, raising the minimum assets required to fund some separately managed accounts to $10 million from $1 million, according to a client note obtained by Bloomberg. The firm also said it will not enroll new clients or accept new funds in portfolio margin accounts, which use greater leverage. This is at least the third time Schwab has tightened rules for the strategy, which has grown rapidly among affluent investors seeking to offset capital-gains taxes. The changes take effect on September 16 and apply only to new accounts, with existing clients unaffected. Schwab and rival Fidelity Investments have both pulled back from facilitating the trades amid concerns about their unprecedented growth, though other money managers continue to offer tax-minimizing products.
Charles Schwab CorpSchwab raises minimums and restricts new portfolio margin accounts, limiting access to tax-aware strategies.