Schwab Stock Plan Services recently expanded availability of fully featured investment accounts to equity compensation plan participants in 18 additional countries. With the expansion, Schwab now offers fully featured accounts for participants in 52 jurisdictions outside the U.S.
Many stock plan providers offer limited investment account features to international employees due to securities and tax law intricacies that vary widely from country to country. To implement the new capabilities, Schwab worked directly with legal and regulatory experts in each of the added countries to ensure adherence to applicable country-specific laws, securities regulations and exemptions.
“Eighty percent of our clients have employees outside the U.S., which represents 25 percent of all of the stock plan participants we serve,” said Amy Reback, Managing Director, Schwab Stock Plan Services. “That’s why we’re so pleased to be able to increase our offerings to more participants by expanding access to our financial professionals, educational resources, and investment services.”
Limited-purpose accounts typically only allow the holding and sale of equity awards, without the ability to invest in other securities. As a result, many international employees simply cash-out their equity compensation when a vesting event occurs. Fully featured accounts provide access to expanded products and services, including broader securities trading, options, fixed income, eligible offshore mutual funds, and a debit card.
“Our clients want employees to view their equity compensation plan as a wealth builder that can turn them from earners into owners. Fully featured accounts help with this goal by offering more comprehensive services that can show the true, long-term value of equity compensation and how it fits into an overall financial plan, which helps deepen ties between employees and employers,” Reback said.
Non-U.S. countries and U.S. territories eligible for fully featured accounts include:
| Argentina Australia Austria* The Bahamas Belgium Bermuda Brazil British Virgin Islands Cayman Islands Chile China Colombia Costa Rica*Newly added | Czech Republic* Denmark* Ecuador Finland* Germany Greece* Guam Guatemala Hong Kong Iceland* India Indonesia* Ireland* | Israel Jersey Luxembourg* Malaysia Mexico Netherlands* Norway* Panama Paraguay* Peru Poland* Portugal* Puerto Rico | Qatar South Korea* Spain Sweden* Switzerland Taiwan Thailand Trinidad & Tobago* Turks & Caicos* United Arab Emirates United Kingdom U.S. Virgin Islands Uruguay |
In addition to offering fully featured accounts for participants in 52 jurisdictions, Schwab Stock Plan Services continues to offer equity accounts worldwide, with the exception of OFAC-sanctioned countries, so employees can manage their equity compensation regardless of their location through a fully featured or limited-purpose account.
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.
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