Securities Lending Income Program (SLIP)
Where can I review my loan activity and accrual?
You will be able to see your loaned shares, collateral, and the rate you are earning online. A monthly statement will also be provided as summary and lending income information. Monthly statements will only be available if loan activity has taken ...
How will securities be chosen for loans?
All enrolled accounts holding the security will be identified and put into a lottery process. Accounts will then be selected on a random basis.
How are lending rates determined?
Each security has its own lending rate based on demand.
Can I still buy/sell the security while it is out on loan?
Yes, you may remain invested and can continue to buy or sell securities as usual. However, once the securities on loan are sold the loan will terminate and the client will stop receiving loan interest.
Where will the collateral be held?
To secure the loan, cash and non-cash collateral (as per the Securities Exchange Act of 1934 and related SEC and FINRA guidance) will be held for your benefit at a custodial bank that is independent of our clearing partner, DriveWealth. The value of ...
How do I optout/unenroll from the Fully Paid Lending Income Program?
You can enroll or revoke enrollment from the Profile options for your account, through the Vested app. On choosing to revoke enrollment, you will cease to earn any further interest on securities eligible for the Program, and there may be restrictions ...
What risks are involved in the Fully Paid Lending Income Program?
Fully Paid Lending isn’t appropriate for everyone. Clients with very low risk tolerences should not consider the program. A primary risk is counterparty default. Drivewealth is your counter party on fully paid lending transactions. If Drivewealth ...
How will dividends be handled within the Fully Paid Lending Income Program?
Substitute payments will be provided in lieu of dividends and are taxed differently than dividends. Consult your tax professional for further details.
Will I continue to have voting rights for shares on loan?
No, voting rights are forfeited for shares on loan, but the client will retain voting rights for any shares of that security that are not on loan.
How will SIPC coverage be impacted?
SIPC will not cover the securities position on loan. However, the loan will be backed by 100% collateral held at a third-party bank.