FAQs Regarding Our Business Transition
FREQUENTLY ASKED QUESTIONS
- Who is Pershing? Pershing is a division of the Bank of New York Mellon and one of the four largest custodians in the country (Fidelity, Schwab and TD Ameritrade being the others).
- What is a custodian? A custodian is a trust company, bank or similar financial institution responsible for holding and safeguarding the securities owned. A custodian holds assets for safekeeping and can also provide a range of services including fund administration, fund accounting, legal, compliance, tax support and transfer agency services.
- Why are you making this change? Currently, Paul Ried Financial Group works with Cetera Advisor Networks LLC as a Broker/Dealer, with your assets held at Pershing, LLC. Through our success as a firm, we now have the opportunity to partner directly with Pershing Advisor Solutions as an institution. This more closely aligns our platform with our fiduciary role. In addition, we will gain operational efficiencies and provide additional services in the future.
- What is a fiduciary? A fiduciary duty is the highest standard of care. It entails always acting in your client’s best interest, even if doing so is contrary to yours. For a financial advisor, this may mean recommending a product that results in reduced or no compensation because it's the best option for the client.
- How did you decide on Pershing? After an exhaustive, year-long search encompassing multiple interviews and research (including on-site visits), we determined Pershing to be the best fit for our current and future clients.
- What are the costs to me? There will be no costs to you for the conversion. Under the direct relationship with Pershing, you will see cost savings including no annual IRA maintenance fee and lower trading costs.
- Will my current monthly income instructions and tax instructions remain the same? For most accounts, these features will transfer and remain the same. This includes income distribution instructions and tax withholding. If new instructions are needed, you will find forms in your package to complete.
- When will the transfer from Cetera directly to Pershing take Place? At the close of business on December 14, 2018.
- How will tax reporting for 2018 be affected? You will receive two separate 1099 statements the first quarter of 2019. One will be from Cetera for most of the year and the other from Pershing for the remainder of the year. These totals should be added together for the full year.
- I have an annuity. How will that be effected? There will be no change. The annuities will continue to be held and reported through Cetera. We will continue to serve as your advisor on that account.
- I have an account directly with a mutual fund. How will that be effected? There will be no change. Investments directly with a mutual fund will be reported by the mutual fund and continue to held through Cetera. We will continue to serve as your advisor.
- I own individual stocks in a buy and hold brokerage account. How will these be effected? For the time being, brokerage (non-managed) accounts will continue to be held through Cetera. We will continue to serve as your advisor.
- What do I need to do to assist in this transition? You will be receiving a UPS envelope (including a prepaid return envelope) at the end of September. We request that you review forms, complete any missing information, sign where indicated and return them in the prepaid envelope at your earliest convenience.
- Where and when will the package be sent? Packages will be sent to your primary address during the last week of September.
- How do I know which is my primary address? The address listed on your most recent statement is your primary address.
- What if I am away from my primary address during this time? We are happy to accommodate special arrangements. If you are unable to receive the paperwork during the prescribed time, please either call our office directly (425-646-6777 ext. 1622) or email email@example.com.
- Who do I contact if I have additional questions? Please feel free to contact our office directly or email firstname.lastname@example.org. Additionally, we will be available to answer questions at our upcoming client event on October 24th.
- Will my account number(s) change? Yes, the “06H” prefix will change to “0FZ”, but the last 6 digits of your account number will remain the same.
- Will my online access change? Yes and no. For managed accounts transitioning in December, most clients will maintain the same username and password for online access, but the 157 financial organization number will change. Stay tuned for further details and technology enhancements in the new year.
Investors should consider the investment objectives, risks and charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds. Contact our office to obtain a prospectus, which should be read carefully before investing or sending money.