As a recent Fidelity convert, thank you very much for your note. This should help us in the future as the makeup of our club changes.
Thanks again,
--Dan W.
On Wednesday, May 14, 2025 at 12:45:22 PM CDT, Michael Boyd via bivio.com <user*37394800001@bivio.com> wrote:
FWIW - some Fidelity experiences. 8-yr old investment club. LLC taxed like a partnership. Always with Fidelity. Number of member changes over the years.
What has worked for us & Fidelity: 1. All partners signed the original partnership agreement. 2. As members left/joined, a separate addendum for that member is signed (agreeing to abide by the agreement). 3. We maintain a log of member tenure, so you can trace from the original founders to the partners of today. Simple spreadsheet with a row for each departure/join. 4. Our three officers are authorized traders on the Fidelity account. The remaining members are limited inquiry only on the Fidelity account. Most activity (trades, withdrawals, transfers, authorizing new inquiry members) can be performed by the authorized traders.
5. We've found that only account changes (changing authorized traders when officers change, corp address changes, changing checkwriting privileges) requires all partners to approve. We typically pass a separate resolution at a meeting to authorize the action and have all partners sign it. We've submitted multiple forms for that (Fidelity's own forms allow you to make additional copies of the signature page and submit separately). Members that are close will sign 1 form and provide to the treasurer to collate together. We try to make it easy for them by pulling all paperwork together in one packet.
6. And agree that their backoffice special services team is who you need to sync with. We've found them very responsive, willing to give guidance and good at follow through. Pro tip - ask the Fidelity call rep to open a formal case and give you a ticket number. (We label all our materials w the ticket number - seems to help info stay organized to your request).
Michael Boyd, Treasurer Salt Pond Investment Club
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Jim Kandler via bivio.com Sent: Wednesday, May 14, 2025 10:05 AM To: club_cafe@bivio.com Subject: Re: [club_cafe] Re: Schwab closing investment club accounts!?!
Well it doesn't sound like Fidelity is heaven. Fidelity is demanding all signatures on one sheet. While we are not a large club this has held up the transfer for more than six months. I am really afraid of what happens at the introduction of a new member, or as one leaves. if our records don't meet their criteria (what ever that is) will they stop further trades?
We can't change the wind, but we can properly adjust the sails.
Sorry you got stuck with the Schwab problem Dan! While we haven't had members leaving yet, we are also an club with older members (3 turning 80 this year); nobody (Club or individual members) want to take the tax hit all in one tax year, so transferring stock is a much better option.
I said 'it appeared' older clubs were under different rules because in the old discussions, that's what I was reading then - some older clubs reporting that they didn't have that problem and were able to transfer stocks. Very frustrating finding out our Club was not allowed to do same. But now we are happily using Fidelity, and have already administered some stock withdrawals without any problem.
Afraid Lynda that is not correct; we were with Schwab for over 9 yrs and after the Schwab/Bivio disconnect we left a year later. We have had a number of members leaving (mostly age related) and having to sell stock to pay them off; so all the members had to pay capital gains on that member's withdrawal! Now we just transfer stock
We had the exact same experience that Molly had. Schwab would not allow us to do stock transfers, Fidelity does.
This topic has been discussed before; from earlier discussions it appeared that Clubs who'd been with Schwab prior to the TDAmeritrade transition were allowed (and still allowed) to make stock transfers, but for those of us who were new to Schwab, new rules applied to us including no stock transfers to members. Very frustrating, but we are having a good experience with Fidelity.