How do I stop Fidelity from lending my shares?
Shares lending is a common practice that brokerage firms engage in to generate additional income. However, if you prefer for Fidelity not to lend out your shares, you have the option to prevent this from happening. Here’s a step-by-step guide on how to stop Fidelity from lending your shares.
1. **Begin by visiting Fidelity’s official website.** Open your preferred web browser and type “Fidelity” into the search bar. Click on the official Fidelity Investments website link that appears in the search results.
2. **Sign in to your Fidelity account.** Locate the “Log In” button on the Fidelity homepage and click on it. Enter your username and password to access your account.
3. **Navigate to the “Account Features” menu.** Once you are logged in, look for the “Accounts & Trade” tab on the top menu. From the dropdown menu, select “Account Features.”
4. **Select the relevant account.** On the “Account Features” page, you will see a list of all your Fidelity accounts. Choose the specific account that includes the shares you want to prevent from being lent out.
5. **Click on the “Securities Lending” link.** Under the account details, locate the “Securities Lending” section. Click on the link provided to access the securities lending options for your chosen account.
6. **Review the terms and conditions.** Fidelity will present you with the terms and conditions related to securities lending. Take the time to read through these carefully to fully understand the implications of stopping share lending.
7. **Click on the option to opt out of securities lending.** After reviewing the terms, you will find an option to opt out of securities lending for the chosen account. Click on this option to proceed.
8. **Confirm your decision.** Fidelity will ask you to confirm your choice to stop share lending. Ensure that you have selected the correct account and double-check your decision before proceeding.
9. **Submit your request.** After confirming your decision, submit your request to Fidelity. It may take a few moments for the system to process your request, but once completed, Fidelity will stop lending out the shares from your chosen account.
10. **Keep track of any changes or updates.** It’s always essential to regularly review your account and stay updated with any changes in policies or options related to securities lending. This way, you can ensure that your shares are being handled according to your preferences.
Now that you know the steps to stop Fidelity from lending your shares, here are answers to some related FAQs:
1. Can I choose which shares Fidelity can lend?
No, Fidelity typically decides which shares to lend based on their guidelines and borrowing demand.
2. Will I lose any benefits by opting out of share lending?
You may lose potential income that could have been generated through share lending, as this is one way brokerage firms earn revenue.
3. Can I change my mind and allow Fidelity to lend my shares in the future?
Yes, you can revisit the securities lending options at any time and change your preference as desired.
4. Are there any fees associated with opting out of share lending?
Fidelity does not charge any fees for opting out or disabling share lending.
5. What happens if I accidentally opt out of share lending and want to reverse my decision?
Simply follow the same steps to access the securities lending options for the account in question, and then choose to opt back in if desired.
6. Can Fidelity lend shares held in an IRA or other retirement accounts?
Yes, Fidelity has the potential to lend shares held in retirement accounts, including IRAs. You can specify if you want to opt out for these accounts as well.
7. Do all brokerage firms lend shares?
No, not all brokerage firms engage in share lending. However, it is a common practice among many larger firms.
8. Is preventing share lending the same as placing a sell order?
No, preventing share lending is unrelated to placing a sell order. It simply ensures that your shares are not lent out to other parties by the brokerage firm.
9. What happens to the shares I own while they are being lent?
When your shares are being lent, you retain ownership and are entitled to receive any dividends or other benefits that may come with them.
10. Does stopping share lending affect the liquidity of my shares?
No, stopping share lending does not affect the liquidity of your shares. You can still buy or sell them as you normally would.
11. Is opting out of share lending a permanent decision?
No, you can change your preference for share lending at any time through your Fidelity account.
12. Are there any tax implications of stopping share lending?
Stopping share lending does not typically have direct tax implications, as you still hold ownership of your shares. However, it’s always advisable to consult a tax professional for personalized advice.