Fidelity brokerage application: non-business activity
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Fidelity brokerage application: non-business activity Trying to open new brokerage account. every brokerage application have variable requirements. Fidelity : business brokerage application. needs to know if this is 'non-business' activity/partnership. If yes, it asks to list beneficial ownership names having more than 25% capital. My club have 3 members with 33% capital each. Q: Is investment club/partnership to invest is considered as non-business activity? Thanks Ask Fidelity for clarification after explaining your partnership's activities. If you are filling out a business brokerage account application, that would suggest to me that you are a business. Mike Jones Wall$treet Wannabees Bloomington, MN From: Raka maka <rakamaka@inbox.com> To: club_cafe@bivio.com Sent: Monday, July 28, 2014 11:24 AM Subject: [club_cafe] Fidelity brokerage application: non-business activity Trying to open new brokerage account. every brokerage application have variable requirements. Fidelity : business brokerage application. needs to know if this is 'non-business' activity/partnership. If yes, it asks to list beneficial ownership names having more than 25% capital. My club have 3 members with 33% capital each. Q: Is investment club/partnership to invest is considered as non-business activity? Thanks That is what you need to do. Since your broker is asking the question, they need to clarify how it should be answered for you. Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Mon, Jul 28, 2014 at 12:29 PM, Mike Jones via bivio.com wrote:
brokerage application says * Is the entity a non-operating business? Examples include, but are not limited to, Holding Company, Personal Investment Vehicle, Personal Investment Company, Shell Company, or similar. -- I asked Fidelity and the reply is You should consult a legal advisor regarding the organization of your club to determine what category you fit into. We are not able to provide guidance in this area Since they are not willing to tell you want they want, then I would feel comfortable in saying, "We are a non-operating business", since an investment club is an investment vehicle of sorts. They can always tell you if they disagree. Mike Jones Wall$treet Wannabees From: Raka maka <rakamaka@inbox.com> To: club_cafe@bivio.com Sent: Monday, July 28, 2014 11:49 AM Subject: [club_cafe] Re: Fidelity brokerage application: non-business activity brokerage application says * Is the entity a non-operating business? Examples include, but are not limited to, Holding Company, Personal Investment Vehicle, Personal Investment Company, Shell Company, or similar. -- I asked Fidelity and the reply is You should consult a legal advisor regarding the organization of your club to determine what category you fit into. We are not able to provide guidance in this area Ask them what would be different if you answer yes or no. Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe I once was in an investment club with a brokerage account at Fidelity. We opened it as an Investment Club, which was different than a business account as I recall.
I'm Helping a new club get started and we just completed our application for Fidelity. The form asks what type of business you are. There are six choices -
According to instructions on the form, the question about a "non-operating business only applies to choices 1,2,3, and 5. It does not need to be answered if your choice is "Investment Club". I assume that you are starting an investment club - so I would suggest choosing that option and ignoring the "non-operating business" question. That's what we did on our application and our account is now open. Len Delmolino Oak Point Investment Club From: "Laurie Frederiksen" <laurie@bivio.biz> To: "The Club Cafe" <club_cafe@bivio.com> Sent: Monday, July 28, 2014 1:17:08 PM Subject: Re: [club_cafe] Re: Fidelity brokerage application: non-business activity Laurie Frederiksen Invest with your friends! www.bivio.com Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe |
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