Important Legal and Regulatory Disclosures

 

Regulation Best Interest (Reg BI)

The Fidelity Brokerage Services (FBS) and Fidelity Personal and Workplace Advisors LLC (FPWA) Customer Relationship Summaries (Form CRS) are important disclosures about the relationships and services our firm offers to retail investors, including fees and costs, conflicts of interest, and standards of conduct.

Customer Relationship Summaries (Form CRS)

Products, Services, and Conflicts of Interest (PSCOI)

These documents and other important investor information about working with Fidelity Investments are available to you for review here.

 

Statement of Financial Condition

The National Financial Services Statement of Financial Condition is available for you to view, print, and download at NFS Statement of Financial Condition - Fidelity

 

Privacy

The 2024 Fidelity Investments and Fidelity Funds Privacy Notice is available at Fidelity.com/privacy.

 

Order Flow Practices

As the introducing broker for your account, FBS routes your orders to our clearing firm affiliate, National Financial Services (“NFS”). In deciding where to send orders received for execution, NFS looks at a number of factors, such as size of the order, trading characteristics of the security, favorable execution prices (including the opportunity for price improvement), access to reliable market data, availability of efficient automated transaction processing, and execution cost. Some market centers or broker-dealers may execute orders at prices superior to the publicly quoted market. NFS’s order routing policies are designed to result in transaction processing that is favorable to its customers. Where a customer directs the market center to which an order is routed, FBS or NFS will route the order to such market center in accordance with the customer’s instructions without regard to its general order-routing practices.

FBS and/or NFS receives remuneration, compensation, or other consideration for directing customer orders to certain market centers. Such consideration may take the form of financial credits, monetary payments, rebates, volume discounts, or reciprocal business. The details of any credit, payment, rebate, or other form of compensation received in connection with the routing of a particular order will be provided upon your request. Unless your account is managed on a discretionary basis by Strategic Advisers LLC, an affiliate of NFS, NFS may execute certain transactions as principal. In addition, from time to time, Fidelity may provide aggregated trade execution data to customers and prospective customers.

 

Order Routing Disclosure

Quarterly reports : Quarterly information regarding the routing of orders by NFS in listed equity securities and listed options is available online at Fidelity.com. The reports are formatted in accordance with Securities and Exchange Commission requirements. 

Investor Inquiry : You can request your specific order routing and execution information for the preceding six months. This information will include the identity of the marketplace where your orders were routed for execution, whether the orders were directed or nondirected, and, if executed, the time of the execution. You may contact Fidelity for additional details on the information that is available.

 

BrokerCheck® by FINRA

As part of the Financial Industry Regulatory Authority (FINRA) BrokerCheck program, you have access to the BrokerCheck hotline at 800-289-9999 and FINRA website at finra.org. You can call or email your inquiries and request a brochure that includes information detailing the BrokerCheck program.

 

Municipal Securities Rulemaking Board Investor Brochure

Fidelity Brokerage Services LLC is registered with the U.S. Securities and Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB). An investor brochure may be obtained at MSRB.org that describes the protections that may be provided by the MSRB and how to file a complaint with an appropriate regulatory authority.

 

Investing on Margin

Securities purchased on margin are the firm’s collateral for the loan to you. The actual amount you can borrow and the firm’s margin maintenance requirements may vary depending on the firm’s internal margin policies, which exceed the margin requirements of FINRA and NYSE. The firm’s margin policies are subject to review and revision at any time in the firm’s sole discretion. The firm reserves the right to alter the terms on your margin loan at any time to comply with changes to the firm’s policies. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the firm can take action, such as issuing a margin call or selling securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin.

IMPORTANT: (1) YOU CAN LOSE MORE FUNDS THAN YOU DEPOSIT IN THE MARGIN ACCOUNT. (2) THE FIRM CAN FORCE THE SALE OF SECURITIES OR OTHER ASSETS IN YOUR ACCOUNT(S). (3) THE FIRM CAN SELL YOUR SECURITIES OR OTHER ASSETS WITHOUT CONTACTING YOU. (4) YOU ARE NOT ENTITLED TO CHOOSE WHICH SECURITIES OR OTHER ASSETS IN YOUR ACCOUNT(S) ARE LIQUIDATED OR SOLD TO MEET A MARGIN CALL. (5) THE FIRM CAN INCREASE ITS ‘HOUSE’ MAINTENANCE MARGIN REQUIREMENTS AT ANY TIME AND IS NOT REQUIRED TO PROVIDE YOU WITH ADVANCE WRITTEN NOTICE. (6) YOU ARE NOT ENTITLED TO AN EXTENSION OF TIME ON A MARGIN CALL. 

NFS can loan securities held in your margin account, which collateralize your margin borrowing. Short selling and day trading are margin account transactions and entail the same risks as described above. In addition to market volatility, the use of a bank card, checkwriting, and similar features with your margin account may increase the risk of a margin call.

Margin credit is extended by National Financial Services LLC, Member NYSE, SIPC. Contact your brokerdealer regarding any questions or concerns you may have with your margin account.

 

Callable securities

National Financial Services LLC (“NFS”) an affiliate of Fidelity Brokerage Services LLC (FBS) provides custody and clearing services on behalf of FBS. In that capacity, NFS is required to provide you with written notice on the manner in which you may gain website access to information regarding NFS’ Impartial Callable Securities Lottery Process (the “Lottery Process”).

We are also providing you with the following description of the Lottery Process: When street name or bearer securities held for you are subject to a partial call or partial redemption by the issuer, National Financial Services LLC (NFS) may or may not receive an allocation of called/redeemed securities by the issuer, transfer agent, and/or depository. If NFS is allocated a portion of the called/redeemed securities, NFS utilizes an impartial lottery allocation system, in accordance with applicable rules, that randomly selects the securities within customer accounts that will be called/redeemed. NFS’ allocations are not made on a pro rata basis and it is possible for you to receive a full or partial allocation, or no allocation.

A more detailed description of the Lottery Process may be accessed by visiting Fidelity.com/callable-securities. You may also request a hard copy of the Lottery Process by writing to National Financial Services LLC, P.O Box 770001, Cincinnati, OH 45277.

 

Electronic Funds Transfer Notice (Regulation E)

Electronic Funds Transfer Notice: The following notice is required by the Bureau of Consumer Financial Protection's Regulation E and applies to electronic funds transfers (EFTs) made by consumers. However, it doesn’t apply to all EFTs. Generally, EFTs in nonretirement accounts, aside from those made for the purchase or sale of securities, are subject to Regulation E (each a "Covered Transfer").

Error Resolution: In the case of errors or questions about a Covered Transfer, promptly call or write Fidelity using the contact information listed below. You must call or write Fidelity if you think that your statement is wrong or if you need more information about a Covered Transfer on the statement. Fidelity must hear from you no later than 60 days after Fidelity sent the FIRST statement on which the problem or error appeared. You will need to tell Fidelity your name and account number, describe the error or Covered Transfer that you are unsure about, explain as clearly as you can why you believe that it is an error or why you need more information, and tell Fidelity the dollar amount of the suspected error.

If you notify Fidelity orally, Fidelity may require that you send your complaint or question in writing within 10 business days. Fidelity will tell you the results of its investigation within 10 business days of hearing from you and will correct any error promptly. If Fidelity needs more time, however, it may take up to 45 days to investigate your complaint or question. If Fidelity decides to do this, it will credit your account within 10 business days for the amount you think is in error, so that you will have the use of the money during the time it takes Fidelity to complete its investigation. If Fidelity asks you to put your request or question in writing and doesn’t receive it within 10 business days, or if your account is a brokerage account subject to Regulation T of the Board of Governors of the Federal Reserve System (Credit by Brokers and Dealers, 12 CFR 220), Fidelity may not credit your account.

For questions involving new accounts, or point-of-sale or foreign-initiated transactions, Fidelity may take up to 90 days to investigate your complaint or question. For new accounts, Fidelity may take up to 20 days to credit your account for the amount you think is in error. Fidelity will inform you of the results of its investigation within three business days of its completion. If Fidelity decides that there was no error, Fidelity will send you a written explanation. You may ask for copies of the documents that Fidelity used in the investigation.

Contact Information: You can contact Fidelity by mail at Fidelity Investments, PO Box 770001, Cincinnati, OH, 45277-0002, or by phone at 800-544-6666.

 

Quarterly tax withholding - IRA

NOTIFICATION OF YOUR TAX WITHHOLDING OPTIONS IN REGARD TO DISTRIBUTIONS FROM YOUR IRA. Federal Income Tax Withholding – The default withholding rate is 10%. You can choose a different rate by entering a rate between zero and 100%. Generally, you can’t choose less than 10% for payments to be delivered outside of the United States and its possessions. Federal income tax will not be withheld from distributions from a Roth IRA unless you elect to have such tax withheld or are otherwise subject to withholding because you are a non-resident alien. If taking a systematic withdrawal, you may have a different tax withholding election which will remain in effect on checkwriting or systematic withdrawals taken from your IRA until revoked by you.

State Income Tax Withholding – If federal income tax withholding is applied to your distribution, state income tax may also apply. Your state of residence will determine your state income tax withholding requirements, if any. Please refer to the lists below. Your state of residence is determined by the legal address of record on your IRA. For residents of AR, IA, KS, MA, ME, OK and VT, if federal income tax withholding is applied to your distribution, state income tax will also apply.

For residents of CA, DE, MN, NC or OR, if federal income tax withholding is applied to your distribution, state income tax will also apply unless you elect not to have state income tax withheld. For residents of DC, if you take a distribution of your entire account balance and do not directly roll that amount over to another eligible retirement account, DC requires that a minimum amount be withheld from the taxable portion of the distribution, whether or not federal income tax is withheld.

For residents of CT or MI, state income tax applies regardless of whether or not federal income tax withholding is applied to your distribution. Please reference the CT or MI W-4P Form for information and to calculate the amount to withhold from your distribution. Tax withholding is not required if you meet certain CT or MI requirements governing pension and retirement benefits. For residents of MS, state income tax withholding will apply regardless of whether or not federal income tax withholding is applied to your distribution, unless you elect not to have state income tax withheld. For residents of SC, you must provide a valid Social Security number; individual tax identification number; or tax identification number for a nonresident alien, if not SC requires that 7% tax be withheld from the distribution.

For residents of AK, FL, HI, NH, SD, TN, TX, WA or WY, state income tax withholding is not applicable on IRA distributions. For residents of all other states not mentioned above, you are not subject to mandatory state income tax withholding; however, you may elect voluntary state income tax withholding in a percentage. If you elect to have state income taxes withheld and your state provides a minimum amount or percentage for withholding, you must elect a percentage that is not less than your state’s minimum withholding requirements. If the percentage you elect for withholding is less than your state’s minimum withholding requirements, your state’s minimum amount or percentage will be withheld.

Whether or not you elect to have federal and/or state income tax withheld from your distribution(s), you are responsible for the full payment of federal income tax, any state or local taxes, and any penalties which may apply. You may be responsible for estimated tax payments and could incur penalties if your estimated tax payments are not sufficient. Please contact Fidelity for more information or contact your state taxing authority for assistance. THE INFORMATION PROVIDED ABOVE IS GENERAL IN NATURE AND SHOULD NOT BE CONSIDERED LEGAL OR TAX ADVICE.

 

Bi-annual tax withholding – Keogh

NOTIFICATION OF YOUR TAX WITHHOLDING OPTIONS IN REGARD TO PERIODIC DISTRIBUTIONS FROM YOUR FIDELITY RETIREMENT PLAN ACCOUNT. Federal Tax Withholding: For a rollover eligible distribution, 20% will be withheld for federal income tax, unless that distribution is directly rolled over. You cannot elect out of 20% withholding for federal income tax. If taking a Required Minimum Distribution, a distribution of Substantially Equal Periodic Payments over ten or more years or a distribution of after-tax contributions, the 20% withholding for federal income tax does not apply. However, if the distribution is not eligible to be rolled over, IRS regulations require us to withhold federal income taxes at the rate of 10% for single withdrawals, or at a rate based on IRS wage tables for periodic withdrawals, unless you elect not to have withholding apply. Your election will remain in effect on periodic distributions taken under a periodic withdrawal plan until revoked by you. You can change this election for future distributions at any time by contacting Fidelity.

State Tax Withholding: If federal income tax withholding is applied to your distribution, state income tax may also apply. Your state of residence will determine your state income tax withholding requirements, if any. Please refer to the lists below. Your state of residency is determined by the legal address of record on your Fidelity Retirement Plan account. For residents of AR, IA, KS, MA, NE, OK, PR, VA, or VT, if federal income tax withholding is applied to your distribution, state income tax will also apply. For residents of CA, DE, GA, NC, and OR, if federal income tax withholding is applied to your distribution, state income tax will also apply unless you elect not to have state income tax withheld.

For residents of DC, if you take a distribution of your entire account balance and do not directly roll that amount over to another eligible retirement account, DC requires that a minimum amount be withheld from the taxable portion of the distribution, whether or not federal income tax is withheld. For residents of ME and MS, state income tax will apply regardless of whether or not federal income tax withholding is applied to your distribution, unless you elect not to have state income tax withheld. For residents of CT or MI, state income tax applies regardless of whether or not federal income tax withholding is applied to your distribution. Please reference the CT or MI W-4P Form for additional information about calculating the amount to withhold from your distribution. Tax withholding is not required if you meet certain CT or MI requirements governing pension and retirement benefits.

For residents of SC, you must provide a valid Social Security number; individual tax identification number; or tax identification number for a nonresident alien, if not SC requires that 7% tax be withheld from the distribution. If the percentage you elect for withholding is less than your state's minimum withholding requirements, your state's minimum amount or percentage will be withheld. For residents of AK, FL, HI, NH, NV, SD, TN, TX, WA, or WY, state income tax withholding is not available on your distributions. For residents of all other states, you are not subject to mandatory state income tax withholding; however, you may elect voluntary state income tax withholding in a percentage. If you elect to have state income taxes withheld and your state provides a minimum amount or percentage for withholding, you must elect a percentage that is not less than your state’s minimum withholding requirements.

Whether or not you elect to have federal, and if applicable, state tax withholding apply, you are responsible for the full payment of federal income tax, any state or local taxes, and any penalties which may apply to your distribution. You may be responsible for estimated tax payments and could incur penalties if your estimated tax payments are not sufficient. Please contact Fidelity for more information, or contact your state taxing authority for assistance. THE INFORMATION PROVIDED ABOVE IS GENERAL IN NATURE AND SHOULD NOT BE CONSIDERED LEGAL OR TAX ADVICE.

 

Annual callout

Important information about your telephone conversations with Fidelity. Telephone conversations made with/to Fidelity may be monitored and/or recorded without further notice or disclosure.

 

Pension Protection Act (PPA)

The balance in your Fidelity Retirement Plan account is 100% vested.

You have the right to direct the investments in your account, as described in the plan document.

A well balanced and diversified investment portfolio is important for long-term retirement security. If you invest more than 20% of your retirement savings in any one company or industry, you may not be properly diversified. Although diversification is not a guarantee against loss, it is an effective strategy to help manage investment risk. Visit Fidelity.com for more information on allocating your portfolio.

Please visit https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/pension-protection-act/investing-and-diversification for more information on investing and diversification of your plan assets.

 

NV do not call

Nevada law requires us to notify Nevada residents that you may request at any time to be placed on Fidelity's internal do-not-call list.

You may do so by calling Fidelity at 800-343-3548. Fidelity will not make marketing calls to those on our do-not-call list. For more information about this Nevada law, you may call Fidelity at the number above. You may also contact us at https://www.fidelity.com/customer-service/contact-us, or you may write to us at P.O. Box 770001, Cincinnati, OH 45277-0002. You may also contact the Nevada Attorney General, 555 E. Washington Ave., Suite 3900, Las Vegas, NV 89101; phone: 1-702-486-3132; email: AgInfo@ag.nv.gov.

 

Options Disclosure Document Update

June 2024 Supplement to Characteristics and Risks of Standardized Options. The March 2023 version of Characteristics and Risks of Standardized Options is amended as provided below to update 1) the list of options markets and 2) settlement information to reflect T+1 settlement.

The inside front cover is amended to insert the following options market alphabetically to the list of options markets: MEMX LLC (MEMX Options), 525 Washington Blvd., Suite 300, Jersey City, NJ 07310

The first sentence of the second paragraph on page 57 is replaced with the following: As of May 28, 2024, the regular exercise settlement date for physical delivery stock options is the first business day after exercise.

You can view the full booklet at https://www.theocc.com/Company-Information/Documents-and-Archives/Options-Disclosure-Document. Please note that options trading entails significant risk and is not appropriate for all investors.

 

Managed Accounts Disclosures

For your managed account offered by Fidelity Personal and Workplace Advisors LLC, it is important for us to maintain accurate information concerning your financial situation and investment objectives, and you can impose reasonable investment restrictions (or modify existing investment restrictions) on the management of your account. Depending on your managed account program, there are different ways to update this information and impose or modify an investment restriction. For Fidelity Go® and Fidelity Managed FidFolios® clients, please log in at Fidelity.com and navigate to your profile page. For Fidelity® Wealth Services and Fidelity® Strategic Disciplines clients, please contact your Portfolio Advisory Services representative at 800-544-3455 (available from 8 a.m. to 7 p.m. Eastern time, Monday through Friday).

Additionally, for Fidelity Wealth Services and Fidelity Strategic Disciplines clients, certain account balances may be aggregated with certain other account balances to potentially reduce your advisory fee. Please note clients are responsible for ensuring that any accounts meeting the eligibility requirements are aggregated. For more information, contact your Portfolio Advisory Services representative. (1106547.1.1)

 

FDIC Insured Deposit Sweep Program

Banc of California Removal: As a result of planned Program Bank list consolidation, Banc of California will no longer participate in the Fidelity FDIC-Insured Deposit Sweep Program (the “Program”). This change will affect Fidelity Cash Management Accounts and eligible individual retirement accounts (“Retirement Accounts”) that use the Program. As a result, Fidelity will take the following steps:

On or around November 18, 2024, all eligible Fidelity Retirement Accounts and Fidelity Cash Management Accounts with a Program Bank list that includes Banc of California as the first bank (the “Primary Core Bank”) will be assigned an updated Program Bank list with JPMorgan Chase Bank as the Primary Core Bank. Customers will receive a Revised Account Profile which will include the updated Program Bank list.

Fidelity will withdraw all customers’ Program deposits (other than accrued interest) from Banc of California on or around November 21, 2024. The funds will be swept to the banks on the Program Bank list that have been assigned to these accounts. Any accrued interest earned on Program deposits at Banc of California up through the date of the transfer will remain at Banc of California until it is posted to the customers’ accounts and swept to the banks on the Program Bank list. This will occur on or around December 2, 2024.

On or around December 12, 2024, Banc of California’s participation in the Program will end and the bank will be removed from the Program Bank list assigned to every Fidelity Retirement Account and Fidelity Cash Management Account.

Customers are not required to take any action at this time, but if there are questions about the removal of Banc of California, the transfer of deposits, or changes to the Program Bank lists, please contact a Fidelity representative at 800-343-3548. If you do not contact Fidelity before the changes noted above take effect, Fidelity will consider you to have acknowledged and agreed to continue to participate in the Program as described above. As always, thank you for investing with Fidelity. 1158468.1.0

Flagstar Bank Removal.: As a result of planned Program Bank list consolidation, Flagstar Bank (“Flagstar”) will no longer participate in the Fidelity FDIC-Insured Deposit Sweep Program (the “Program”). This change will affect Fidelity Health Savings Accounts, Fidelity Cash Management Accounts, and eligible individual retirement accounts (“Retirement Accounts”) that use the Program. As a result, Fidelity will take the following steps:

On or around December 9, 2024, all eligible Fidelity Health Savings Accounts, Fidelity Retirement Accounts, and Fidelity Cash Management Accounts with a Program Bank list that includes Flagstar as the first bank (the “Primary Core Bank”) will be assigned an updated Program Bank list with JPMorgan Chase Bank as the Primary Core Bank. Customers will receive a Revised Account Profile, which will include the updated Program Bank list.

Fidelity will withdraw all customers’ Program deposits (other than accrued interest) from Flagstar on or around December 12, 2024. The funds will be swept to the banks on the Program Bank list that have been assigned to these accounts. Any accrued interest earned on Program deposits at Flagstar up through the date of the transfer will remain at Flagstar until it is posted to the customers’ accounts and swept to the banks on the Program Bank list. This will occur on or around January 2, 2025.

On or around January 21, 2025, Flagstar’s participation in the Program will end and the bank will be removed from the Program Bank list assigned to every Fidelity Health Savings Account, Fidelity Retirement Account, and Fidelity Cash Management Account.

Customers are not required to take any action at this time, but if there are questions about the removal of Flagstar, the transfer of deposits, or changes to the Program Bank lists, please contact a Fidelity representative at 800-343-3548. If you do not contact Fidelity before the changes noted above take effect, Fidelity will consider you to have acknowledged and agreed to continue to participate in the Program as described above. As always, thank you for investing with Fidelity. 1158388.1.0

 

Debit Card Relocate Debit Card Retail Issuing Bank Change - Leader Bank to new Debit card section

Effective August 22, 2024, the bank that issues the debit card associated with the Fidelity Account®, Fidelity Cash Management Account and Fidelity Youth® Account is changing from PNC Bank N.A. to Leader Bank N.A. With this change, a fee will be assessed at PNC Bank ATMs. For Fidelity Cash Management Account owners, Youth Account® owners or Fidelity Account® owners, coded Premium, Active Trader VIP, Private Client Group, Wealth Management, or former Youth Account® owners, your account will automatically be reimbursed for all PNC ATM fees charged while using the Fidelity® Debit Card. ATMs with the Allpoint or MoneyPass logos will continue to provide a surcharge-free ATM experience. 1149536.1.0

 

Termination of printed Statements for Interested Parties

Elimination of interested party statements: Print delivery of duplicate account documents to interested parties is no longer supported by Fidelity. Beginning in July 2024, we will remove interested parties receiving printed documents. To enroll parties to receive documents electronically, log in to Fidelity.com/InterestedParty. If you are required to provide these documents to your employer, have your compliance department email us at FidelityDBS@FMR.com to arrange delivery. 1151248.1.0

 

Fees and Expenses

ETF Transaction Fee Notice: In August 2024, Fidelity will implement a new service fee for some ETF and mutual fund purchases. This service fee will apply to a limited number of ETFs and mutual funds offered by providers that do not pay Fidelity a direct, asset-based fee to support their ETFs’ and/or mutual funds availability on our brokerage platform, including support for shareholder support services, the provision of calculation and analytical tools, and general investment research and education materials regarding ETFs and mutual funds. Customers purchasing these ETFs and mutual funds will be charged a service fee of up to $100. The applicable service fee will be shown on the trade verification page when placing an order for one of these ETFs or mutual funds. Please note that ETFs that are supported by their provider through an asset-based fee (and exempt from the service fee) will not be marginable for 30-days after purchase. (1125154.5)