Fidelity Transition FAQ
When will my account be moved over to Fidelity?
In part, this depends on when the signed paperwork is returned to us. Once we receive your paperwork it will be reviewed to ensure all signatures and information is complete. We will also check to make sure any requested documentation is included. The information is scanned into Fidelity’s system and the account opening is complete. If an Email has been included on the account paperwork, you will receive an email from Fidelity notifying you the account is opened and instructing you how to set up your account portal. Transfers will begin in January and will be staged around any distributions that are currently scheduled.
Why wait to transfer the account until 2019?
Many clients have end of year needs that require account servicing, journaling and distributions. We want to ensure these needs can be met without restrictions or limitations. Transfers are targeted to begin after January 15th and will be staged around any scheduled activities such as a monthly distribution. You will be notified when your assets have been moved and are available for viewing at Fidelity.com.
How long does it take to transfer my assets?
Once the transfer form is submitted, most of the time the transfer takes 2-5 days to settle. Certain positions, such as alternatives, other non-traded positions or private stock, will take longer.
Will all my accounts transfer together?
Due to the need to work around distributions, trading or your servicing needs, account transfers will be staged over a 3-week period. One or more of your accounts may settle before the other. Our goal is to have all the assets moved over by February 15th, 2019.
Will my monthly distribution date change?
It may. Starting in February 2019, distribution dates will be set for either the 1st or the 15th of the month. So, if you currently have a distribution date that is on or between the 1st to the 14th, your new date will be on the 1st, if your distribution date is on or between the 15th through the end of the month, your new distribution date will be on the 15th of the month. This change will not take place until February 2019.
Will I receive my statements in the same way?
Statements from Fidelity are defaulted to be sent electronically. Should you prefer paper, there is an option to elect this on both your account paperwork and when they reach out to you to confirm your email for electronic delivery. If you do not confirm your email address as noted on your account paperwork, your default will be switched to paper delivery. You always retain the option of changing from electronic to paper and back. Due to regulations, Vantage cannot alter these elections for you, but we are glad to help you identify how to make these changes.
What about confirmations?
Confirmations will be sent quarterly rather than as each transaction occurs. This should help reduce the volume of paper/emails you receive.
What about my statements at LPL that are online?
Online access at LPL will remain available through March 31, 2019. If you have not downloaded any statements, we recommend you do so for your records. Some best practices recommend maintaining a 2-year cycle of statements for your records (as the new statement is received, shred the oldest statement). Final statements will be sent to your address of record on your account.
What about 1099s?
Because accounts will not be transferred in 2018, you will only be receiving 1099s from LPL Financial. In 2019 you will receive a 1099 from both LPL Financial and Fidelity for each account that is transferred.
Is this costing me anything?
No additional costs will be incurred to move your account. A termination fee is charged by LPL Financial and this will be reimbursed at Fidelity once your account is settled. This credit may not appear in your account right away but should appear within two statement cycles. We will be monitoring your accounts to ensure your credit is applied.
As a custodian to your account, Fidelity applies certain service charges of their own for services such as wire transfers, alternative positions and termination as did LPL Financial. These fees are charged by Fidelity as your account custodian. Vantage does not receive any portion of these fees. The annual fee per alternative position is $125 with an account maximum fee of $250. A wire fee of $15 will be applied for wires processed by Vantage or $30 for those requests made directly with Fidelity. There are no annual retirement account charges at Fidelity. Termination fees still apply however: $125 for retirement accounts; $75 for non-retirement accounts.
New forms at Fidelity - (these are optional):
- Account Access Rights (optional) - Used to designate a 3rd party to allow them inquiry level only access to your account directly with Fidelity (all other access levels are not available for managed accounts.) If you elect for this please do the following: On Page 2, select Inquiry only at the top of page 2-Item 1 and enter the 3rd party information at the bottom of page 2-Item 2, then sign and date the form.
- Account Document Household (optional) - Used to combine statements. This will be pre-populated with your new Fidelity account numbers and should be signed and dated if you wish to have your statements combined.
Do I need to have my signature notarized?
There may be a need for a notarized signature on certain account forms. If it is necessary, a yellow ‘flag’ will be applied to the paperwork to identify which signature requires notarization. Although the account forms sometimes include a section for a notary near where you will sign, it is only required in certain circumstances.
Should I be receiving emails from Fidelity?
Fidelity is your new account custodian. When an email is provided in the account application, Fidelity's system automatically triggers an email to either consent to electronic delivery or to notify you a new account and /or new information has been received. Electronic communication will be used by Fidelity to provide you information about your account such as statements, tax documentation and trade confirmations. Your online access provides you the means to update your settings and make changes. Vantage does receive the same communications from Fidelity that you receive. Your settings for how these communications will be delivered by Fidelity can be managed through your online access.
Moving your assets to Fidelity involves an ACAT transfer process (Automated Customer Account Transfer). The ACAT transfer simplifies the process of moving from one brokerage firm to another. The delivering firm transfers the exact holdings to the receiving firm. For example, if the client had 100 shares of Stock XYZ at the delivering firm, then the receiving firm receives the same amount, with the same purchase price. This makes it more convenient for clients as they do not need to liquidate their positions and then repurchase them with the new firm. Cost basis information is included in the transfer process.
Alternative Transfer Process
Alternative positions (i.e. non-traded REITS) typically take longer to transfer, may require additional forms and sometimes even a medallion signature guarantee. Should additional action be required, we will contact you.
For accounts being transferred to Fidelity, all termination fees are reimbursed. Your account will be assessed a termination fee by LPL. This fee will be reimbursed at Fidelity once the account is settled and typically takes a few weeks to appear in your account. We will monitor this crediting to assure all termination fees are covered. Accounts holding alternatives will be assessed additional termination fees for each position held. These will also be credited back once the accounts settles at Fidelity. An alternative processing fee may be charged at Fidelity upon transfer - this too will be credited back to your account. (for other account fees at Fidelity see Fidelity Account Charges previously addressed)
Checks for Deposit
Checks for deposit into your account will need to be made payable to: Fidelity Investments.
Include your Fidelity account number in the memo section of your check and any specific instructions such as the year designation for IRA contributions. All checks (and monies) deposited at Fidelity are subject to a hold period of four (4) business days per Fidelity’s requirements. Checks can be sent to us for deposit or can be mailed directly to Fidelity.
|Our Mailing Address:||Overnight Address:||Regular Mail Address:|
|Vantage Financial Partners||Fidelity Investments||Fidelity Investments|
|9 North Vail Avenue, Ste 201||100 Crosby Parkway||PO Box 77002|
|Arlington Heights, IL 60005||Covington, KY 41015||Cincinnati, OH 45277-0074|