What is it?
Our clearing partner, Apex, facilitate a securities lending program which lends shares to individuals and institutions that are looking to borrow them. Apex provides Gatsby with a portion of the revenue that they receive for lending client securities. All Gatsby clients are enrolled in securities lending by default.
Things to consider:
The FPSL program will change the way you receive dividends and impact your voting rights for the shares you own.
If a dividend-paying stock is loaned, you will receive cash-in-lieu of that dividend payment. Cash-in-lieu payments are taxed differently so it is important that you discuss the matter with a licensed tax professional.
You will also forfeit your right to proxy voting to the borrower while your securities are out on loan. This is more of a concern for larger, institutional investors, but we wanted to point it out!
Want to learn more or opt out?
Be sure to check out the Lending Agreement and the important disclosures regarding the program. If you have any questions, or would like to un-enroll from the program, please contact firstname.lastname@example.org.