ML no longer supporting investment club accounts and Fidelity no longer opening new club accts?
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ML no longer supporting investment club accounts and Fidelity no longer opening new club accts? Our club was informed in early October by our advisors at Merrill Lynch that they can no longer hold our account and that we need to find a new custodian by the end of the year. The reason given was risk management - because we are a partnership of individuals it is too risky to have our account because we could be money laundering etc. They simply don't want to do business with partnerships like ours any more. We began searching/interviewing new advisors to move our account at year end and thought we had found several, but upon sharing our membership list and partnership agreement with one of them, we were just informed that the custodian they work with, Fidelity, is no longer opening investment club partnership accounts. Is this affecting current accounts held at Fidelity? Where else might we be able to open an account? Has anyone else run into this situation? Thatâs a pain. We have our account through e-trade. I donât know if they are accepting new accounts. > On Nov 8, 2018, at 8:28 AM, Kimberly Berry via bivio.com <user*36387200001@bivio.com> wrote: > > Our club was informed in early October by our advisors at Merrill Lynch that they can no longer hold our account and that we need to find a new custodian by the end of the year. The reason given was risk management - because we are a partnership of individuals it is too risky to have our account because we could be money laundering etc. They simply don't want to do business with partnerships like ours any more. > > We began searching/interviewing new advisors to move our account at year end and thought we had found several, but upon sharing our membership list and partnership agreement with one of them, we were just informed that the custodian they work with, Fidelity, is no longer opening investment club partnership accounts. > > Is this affecting current accounts held at Fidelity? Where else might we be able to open an account? > > Has anyone else run into this situation? You used the word "advisor" and that seemed curious to me. Why do you choose to go to an advisor who then has to go to a broker/dealer to make your transaction instead of going directly to a broker such as TDAmeritrade or ETrade? Back in the days of fixed commissions, that was the only way to reach the market, but not today. I believe both TDA and ETrade are very accepting of investment clubs. Mark Eckman Our club was informed in early October by our advisors at Merrill Lynch that they can no longer hold our account and that we need to find a new custodian by the end of the year. The reason given was risk management - because we are a partnership of individuals it is too risky to have our account because we could be money laundering etc. They simply don't want to do business with partnerships like ours any more. Mark Eckman We use Wells Fargo and have not had any problem with them. Glenn Jenner Eastern Virginia investment Club (EVIC) Sent from my iPhone > On Nov 8, 2018, at 11:32 AM, BarbaraLounsbury via bivio.com <user*29435100001@bivio.com> wrote: > > Thatâs a pain. We have our account through e-trade. I donât know if they are accepting new accounts. > >> On Nov 8, 2018, at 8:28 AM, Kimberly Berry via bivio.com <user*36387200001@bivio.com> wrote: >> >> Our club was informed in early October by our advisors at Merrill Lynch that they can no longer hold our account and that we need to find a new custodian by the end of the year. The reason given was risk management - because we are a partnership of individuals it is too risky to have our account because we could be money laundering etc. They simply don't want to do business with partnerships like ours any more. >> >> We began searching/interviewing new advisors to move our account at year end and thought we had found several, but upon sharing our membership list and partnership agreement with one of them, we were just informed that the custodian they work with, Fidelity, is no longer opening investment club partnership accounts. >> >> Is this affecting current accounts held at Fidelity? Where else might we be able to open an account? >> >> Has anyone else run into this situation? > We used Scottrade since our inception in 2012 without issue. However, Scottrade was purchased by TD Ameritrade recently. To date, we have had no issues with TD Ameritrade & have found their Think or Swim software much more useful than anything Scottrade offered. Rick J. Nosky Treasurer, Tactical Gains Investment Fund
On Thursday, November 8, 2018 11:52:59 AM EST, Mark Eckman via bivio.com <user*24054700001@bivio.com> wrote:
You used the word "advisor" and that seemed curious to me. Why do you choose to go to an advisor who then has to go to a broker/dealer to make your transaction instead of going directly to a broker such as TDAmeritrade or ETrade? Back in the days of fixed commissions, that was the only way to reach the market, but not today. I believe both TDA and ETrade are very accepting of investment clubs. Mark Eckman Our club was informed in early October by our advisors at Merrill Lynch that they can no longer hold our account and that we need to find a new custodian by the end of the year. The reason given was risk management - because we are a partnership of individuals it is too risky to have our account because we could be money laundering etc. They simply don't want to do business with partnerships like ours any more. Mark Eckman Perhaps part of the answer lies in the content of this WSJ article. Bob Thanks for sharing that, Bob. I'm sure that's part of the reason we're being dropped as well. The whole 'risk management' think sounded a little odd to me, but hearing that Fidelity was not accepting new accounts like ours was surprising. Appreciate all the perspectives that are being shared. Perhaps part of the answer lies in the content of this WSJ article. Our club uses Schwab- but I have heard hints that 1, most of them don't really understand how to deal with partnerships like investment clubs and I often am directed to a special department when, for example, we change signatures. But 2, they're not threatening to fire us Gail Brilling Our club was informed in early October by our advisors at Merrill Lynch that they can no longer hold our account and that we need to find a new custodian by the end of the year. The reason given was risk management - because we are a partnership of individuals it is too risky to have our account because we could be money laundering etc. They simply don't want to do business with partnerships like ours any more. Our club has been using Edward Jones since May of 2007. Our Financial Advisor (FA) has been wonderful and has acquired a number of accounts from our club members over the years. I believe the company regards this as a community service. We usually have our FA at one meeting a year, but she is always available to us by phone and very responsive to any needs that we have as a club. Sharon Vestal
We have TD Ameritrade and have never encountered an issue. Sheryl Story - sent from my iPhone > On Nov 8, 2018, at 11:37 AM, Robert Shaw via bivio.com <user*27509400001@bivio.com> wrote: > > Perhaps part of the answer lies in the content of this WSJ article. > > Bob > > > <Merrill Lynch Cuts Broker Pay.docx> > > > >> On Nov 8, 2018, at 11:28 AM, Kimberly Berry via bivio.com <user*36387200001@bivio.com> wrote: >> >> Our club was informed in early October by our advisors at Merrill Lynch that they can no longer hold our account and that we need to find a new custodian by the end of the year. The reason given was risk management - because we are a partnership of individuals it is too risky to have our account because we could be money laundering etc. They simply don't want to do business with partnerships like ours any more. >> >> We began searching/interviewing new advisors to move our account at year end and thought we had found several, but upon sharing our membership list and partnership agreement with one of them, we were just informed that the custodian they work with, Fidelity, is no longer opening investment club partnership accounts. >> >> Is this affecting current accounts held at Fidelity? Where else might we be able to open an account? >> >> Has anyone else run into this situation? > We use ETrade & they have always been helpful & nice to deal with. For more ideas, check the Bivio page of brokerages they can sync with. Best, Dave Nathanson Hawaiian Shirt Society |
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