FIDELITY TRANSITION FAQS

Nothing is changing in terms of the fees you currently pay us or our billing cycle. The only difference is that your account information will be made available through Fidelity instead of Pershing moving forward. It will still show up on your quarterly statement, just like it does now. And, as of our transition to Fidelity, you will also receive quarterly fee statements electronically for your benefit.

POSITIVE FEE UPDATES:

• You will no longer be charged an annual fee of $43.50 for your retirement accounts as Fidelity does not charge maintenance fees for any accounts.
• There are no charges for paper statements.

IMPORTANT NOTES:

• Destiny Capital will continue to cover commissions and trading ticket charges as we typically have for our clients.
• The transition to Fidelity is not a taxable event as your investments will not change.
• You will see termination charges, as outlined below, and a final annual maintenance fee
  charged to your accounts on your final Pershing statement. These closing costs with Pershing will be reimbursed to all client accounts opened through us at Fidelity.
  • Termination Fees: $65-$95 per account
  • Annual maintenance fee: $43.50 per qualified account

Generally, if your transfer is eligible for online submission, it typically takes less than 7 business days to complete your transfer. If for some reason you own an investment that makes your account ineligible for online submission, it could take a few weeks (because of snail mail) to complete, but we will let you know if you are one of these unique cases. And remember, since Fidelity cannot accept orders to trade based on your transferred assets until your assets have been delivered to Fidelity, it’s extremely important to complete your transfer paperwork as quickly as possible to avoid any disruption in the management of your accounts.

You will receive a notification via e-mail from Fidelity and your Destiny Capital team when your transfer is complete. Please email Alison.Yoder@destinycapital.com or Evan.Miller@destinycapital.com, if you have any questions about the status of your transfer.

Your cost basis information will transfer when you complete Fidelity’s online transfer submission process. Cost basis data is typically passed within ten days after the transfer.

Your Destiny Capital team will be managing the timelines for our clients that are taking regular distributions in an effort to avoid any missed or delayed checks. We will send all clients who take regular monthly distributions the last 3 months (October, November, and December’s distributions) in October to give us adequate time to move your accounts and set automatic distributions with Fidelity to begin again January of 2022.

Again, completing your forms as soon as you receive them helps us set this up for you without interruption.

We have complete confidence in Fidelity as a custodian and clearing agent. As custodian, Fidelity will hold your money and investments and produce your account statements and tax forms every year. They have been managing other people’s money since 1946 and currently have $4 trillion in assets under advisement.2 Yes, you read that right: $4 trillion. So we are in good company. And with over 20 years of experience working with independent RIAs like Destiny Capital, Fidelity’s track record and reputation as a custodian and money manager are among the best in the industry. In addition, Fidelity provides us access to some of the brightest investment analysts, a dedicated cyber security and technology support team, and the important oversight and compliance we need in an incredibly regulated industry.

Please note that you will receive two1099s for 2021. One from Pershing and one from Fidelity. Your Destiny Capital team will remind you along the way.

There will be 2 phases of paperwork for most clients. The first phase will be to open accounts and transition your assets to Fidelity and the second phase will be to customize your Fidelity experience uniquely to you. These forms will be personalized and as prepared as possible for you by our team to bring ease to your review and signature.

PHASE 1

• NEW ACCOUNT PAPERWORK
  (electronic for most clients): The new account paperwork is for opening your new accounts at Fidelity.
• STANDING INSTRUCTIONS:
  This form will setup money movement instructions for your accounts that we manage and to third party accounts.
• MARGIN AGREEMENT:
  This form adds margin to your account. Having margin allows you to borrow money against investments in your account.
• OPTIONS AGREEMENT:
  This form gives consent to options as an investment strategy within your accounts.
• DESTINY CAPITAL CLIENT AGREEMENT:
  This is an agreement you have directly with Destiny Capital that outlines our working relationship. Many clients signed an updated client agreement within the last year, however, that agreement specifically outlined Pershing as custodian which means with this transition to Fidelity, we need an updated agreement. Please note, we made updates to the client agreement to provide more flexibility with business changes in the future.

PHASE 2

• ACCESS RIGHTS:
  A form to authorize others to access your accounts (i.e. spouse, partner, POA) from only able to view to greater authority level.
• HOUSEHOLD STATEMENT CONSOLIDATION:
  A form that gives permission to consolidate all your account statements into 1 statement.
• CHECK WRITING AND DEBIT CARD:
  A form that sets up check writing and/or debit card rights on a specific account. New checkbooks can also be ordered.
• STANDING INSTRUCTIONS
  (for clients who need standing instructions for several accounts). This form will setup money movement instructions for accounts that we manage and to many third party accounts.