Fidelity Delays Mutual Fund Settlement

Discussion in 'Wall St. News' started by Trendytrader, Sep 22, 2008.

  1. Normally when I'm selling or exchanging between mutual funds in my Fidelity account it is based on the 4pm close EST. So providing I get the transaction submitted before 4PM it will be settled at the close price of that day.

    So look at what Fidelity have posted today. Basically, they will pick the settlement date and it can be up to 7 days later!

    Important information about account transactions in volatile markets. In light of recent disruptions in the financial markets, you should be aware of several important points generally applicable to transactions processed by Fidelity in your workplace savings plan:

    • When you request a transaction in your account, the proceeds from any sale are credited to your account on the “settlement date.” Although investment funds held in workplace savings plans usually settle within one business day from the date the order is processed, most funds (including money market funds) have the right to delay settlement for up to seven days.

    • If you move money between investments through an exchange or rebalance transaction that results in a sale of a fund that exercises its right to delay settlement, Fidelity will process the purchase side of the transaction on the settlement date at the price on that date.

    • For details, please refer to the fund’s prospectus or other available investment information.

    Fidelity Brokerage Services LLC, Member NYSE, SIPC, 300 Puritan Way, Marlborough, MA 01752
  2. Doesnt mean they are actually doing it, but yes they do have the right.