Frequently asked questions

• How can I participate if I don't have a Fidelity brokerage account?
  With no account fees and no minimums to open a retail brokerage account, including IRAs, it’s easy and just takes a minute.¹ But, remember, you will need at least $25,000 in each account that you wish to enroll.
• How do I know if I am eligible to participate in the Fully Paid Lending program?

  To be eligible to participate in Fidelity's Fully Paid Lending Program, you need to:

  • Have at least $25,000 in each Fidelity brokerage account you wish to enroll.
  • Answer 4 quick questionsLog In Required
  • Complete digital enrollment for all eligible accounts you want to participate in the program.

  And, if you have "in-demand" securities you're ready to participate.

• How can I transfer money to my Fidelity brokerage account(s)?

  It's easy! Securely move money to your Fidelity brokerage account with an electronic funds transfer. And, use our transfer tracker to monitor your transfer of assets request every step of the way. Start hereLog In Required

• What determines which securities are eligible for fully paid lending?
  Based on demand in the lending market, Fidelity identifies securities in your account that may be hard to borrow due to demand for short selling, scarce lending supply, or corporate events that could affect the liquidity of a security. Fidelity then determines which, if any, of those securities they want to borrow.
• Which eligible securities in my portfolio are available for lending?
  Fully paid and excess-margin securities² are eligible for lending through the program. You may lend all or a portion of the securities in your portfolio.
• Does my enrollment in the Fully Paid Lending Program guarantee that my eligible securities will be borrowed?

  No, Fidelity is not obligated to borrow securities. By enrolling, you are giving Fidelity permission to borrow from your current and/or future eligible securities, as needed.

  When enrolling, you will complete the Master Securities Lending Agreement (MSLA), which is a separate agreement from any previously executed margin agreement(s).

• How does lending affect my ownership of the securities?

  Under the securities lending agreement you maintain full economic ownership of the securities on loan and may sell or recall loans at any time.³ However, you do relinquish your ability to exercise voting rights if shares are on loan over a proxy record date.

• Can I sell covered calls against my loaned position?

  Yes, if your account is approved to trade options, you can write covered calls in the "cash" account type while your shares are on loan. As a result, you can potentially receive income from lending your shares in addition to the premium for selling the call. If the call option is assigned, the loan will be terminated and the shares returned.

• Will I still receive cash dividends while securities are on loan?

  Dividends paid on securities borrowed by Fidelity pursuant to the Fully Paid Lending Program will be credited to your Fidelity Account in the form of a "cash-in-lieu" payment if shares are borrowed over a dividend record date. Receipt of cash-in-lieu payments may have different taxable consequences than receipt of the actual dividends from the issuer.

  In order to mitigate the impact of cash-in-lieu payments to taxable accounts, Fidelity may return shares prior to a dividend record date. To help offset the potential tax burden associated with the receipt of cash-in-lieu payments in place of qualified dividends (as defined in the Jobs and Growth Tax Relief Reconciliation Act of 2003), Fidelity will credit participating taxable accounts with an additional credit adjustment equal to 26.98% of the qualified portion of the distribution. This adjustment will occur annually after all reclassification information is made available.⁴

• How can I monitor my securities on loan?

  You can monitor your securities on loan in the same manner as the rest of your portfolio through Fidelity.com.

  You can view your securities on loan and real-time lending rates on the Loaned Securities page, which can be accessed from your Positions page. You also will receive a detailed monthly statement, which is available on the Statements page under Account Records.

• What determines the lending rate?

  The lending rate for each security is based on several factors including borrowing demand, the overall lendable supply of the security, short selling and hedging interest, and general market conditions.

• Will the lending rate change over the life of the loan?

  Changing market conditions may necessitate a change in the lending rate. If a rate changes, you will receive a detailed trade confirmation. You can also view the rates in real-time on the Loaned Securities page. As always, you maintain the right to “recall” or request to have shares returned at any time. Please refer to the Master Securities Lending Agreement (MSLA) for more details on how the lending rate is determined.

• Does Fidelity receive compensation for use of my loaned securities?

  Fidelity receives compensation in connection with the use of your loaned securities when lending to other parties or facilitating the settlement of short sales.

• What are the risks associated with fully paid lending?

  Shares on loan are not covered under SIPC. However, Fidelity provides collateral at a minimum of 100% of the loan value. In any securities lending transaction, counterparty default is a risk.

  Fidelity is your counterparty on all fully paid loans. If Fidelity were to default on its obligations as defined in the MSLA, you would have the right to withdraw the collateral from the custodian bank.

  In addition, voting rights are relinquished, and dividends are paid as cash-in-lieu payments which may have different tax consequences than actual dividends. And, short selling activity may impact the price of your security.

• Can you tell me more about the collateral provided?

  Fidelity will provide you with collateral that is held at a third-party custodial bank. The bank will serve as your collateral agent and hold your collateral in cash or cash-equivalent form. The collateral will be equal to at least 100% of the value of the shares on loan.

  Fidelity will adjust the collateral each day to account for mark to market and additional lending activity.

• How does a loan get terminated?

  Either you or Fidelity can terminate the loan at any time by selling the shares on loan (which is a termination or "recall" notice) or recalling the shares by contacting Fidelity to request that a loan be returned. Fidelity can terminate a loan at any time by returning the shares on loan.

• What happens to my shares when they are on loan?
  Fidelity borrows your shares as principal and serves as your counterparty on all fully paid loans. Fidelity may lend your shares to other customers or counterparties, often in association with short sales