Fidelity Account Control Agreement: What You Should Know

As a Fidelity account holder, you may have come across the term “Account Control Agreement” (ACA) during your account opening process. An ACA is a legal document that outlines the relationship between Fidelity and its customers, particularly when it comes to Fidelity’s role as a custodian of your assets.

In simpler terms, an ACA is a agreement between you and Fidelity that gives you control over your assets. It ensures that you remain the ultimate decision-maker when it comes to your investments, while Fidelity takes on the responsibility of holding and safeguarding those assets.

What is the Purpose of a Fidelity Account Control Agreement?

The primary purpose of an ACA is to provide clarity around the terms of the relationship between Fidelity and its customers. It outlines Fidelity’s responsibilities as a custodian and the account holder`s rights and obligations.

By signing an ACA, you acknowledge that Fidelity has no control over your investments unless you explicitly give them the authority to do so. The agreement also requires Fidelity to follow your instructions as long as they are consistent with the terms of the ACA and don`t violate any laws or regulations.

What Are the Key Elements of a Fidelity Account Control Agreement?

An ACA includes several critical elements that you should be aware of. These elements include:

1. Identification of the Account Holder – The ACA identifies you as the account holder and Fidelity as the custodian.

2. Asset Custodian – The agreement outlines Fidelity`s role as the custodian of your assets.

3. Instruction for Disbursement of Funds – The ACA lists your instructions for the disbursement of funds from your account, including any conditions or restrictions.

4. Binding Authorization – You provide a binding authorization to Fidelity to act as your custodian.

5. Right of Notification – You have the right to receive notifications and account statements from Fidelity.

6. Termination of the Agreement – The agreement can be terminated by either party with written notice.

Why is Your Fidelity Account Control Agreement Vital?

As a Fidelity account holder, your ACA plays an essential role in protecting your assets. It ensures that you retain control over your investments while giving Fidelity the responsibility of safeguarding them.

By understanding the key components of your ACA, you can ensure that you are aware of the terms of the agreement and that they align with your investment goals and expectations.

In conclusion, the Fidelity Account Control Agreement may seem like just another legal document, but it is essential to know and understand. If you have any questions about your ACA, be sure to reach out to Fidelity’s customer support team for assistance. Remember, it`s always better to be informed and proactive when it comes to your investments.