Charles Schwab has rolled out a slate of new margin requirements targeting long-short separately managed accounts, capping how much of an advisor’s assets can be allocated to these strategies and raising the floor on account minimums.
With $21.3 billion of its $126.7 billion total margin loan balance tied to RIA long-short strategies as of March 31, 2026, the firm is pumping the brakes.
What’s actually changing
The new rules, communicated to clients around April 23-24, impose several concrete limits. No more than 30% of an RIA’s total custody assets at Schwab can be allocated to long-short SMA strategies.
Margin loan limits have been set at 200% of principal for long positions and 100% for short positions. In English: if an advisor has $1 million in a client account, they can borrow up to $2 million for long bets and up to $1 million for shorts.
