Capital One Investing Program Changes Frequently Asked Questions (FAQs)
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Capital One Investing, LLC
PO Box 259008
Plano, TX 75025
Capital One Investing® Program Changes Frequently Asked
Questions (FAQs)
We’re busy preparing for your account transition to E*TRADE® later this year. Please be
aware that some Capital One Investing® programs will be changing starting on Friday,
July 13, 2018. These changes will affect you if you participate in PortfolioBuilder®,
ShareBuilder® Investment Plan, Advantage subscription, Costco Advantage or dividend
reinvestment programs.
What’s changing?
• PortfolioBuilder will no longer be available after July 13, 2018, which is the last
day you can enter an order. If you wish to place an order to purchase or sell an
ETF portfolio using PortfolioBuilder, you must enter your order prior to market
close on July 13, 2018.
• The ShareBuilder Investment Plan will no longer be available after July 17,
2018. The last date orders will be executed for the ShareBuilder Investment Plan
will be July 17, 2018. When the ShareBuilder Investment Plan is discontinued,
your purchase instructions and corresponding money transfer instructions
associated with this program will be canceled.
• If you are enrolled in the Advantage subscription program, including the
Costco Advantage program, the last monthly subscription fee was charged on
May 1, 2018. You will not be charged a fee for your subscription in June or July,
and your subscription benefit will end on July 17, 2018.
• Dividend reinvestment will no longer be available after July 17, 2018. Dividends
and capital gains paid after that date will be distributed to your account in cash—
with the exception of stock dividend events. Stock dividends, where the payment
from the issuer is only in stock, will be distributed to your account in whole shares
where possible, and in cash in lieu of fractional share entitlements.
What if I don’t participate in those programs?
If you don’t participate in PortfolioBuilder, the ShareBuilder Investment Plan, Advantage
subscription, Costco Advantage or dividend reinvestment programs, we don’t anticipate
that the changes to these programs will affect you.When will my account be transferred to E*TRADE?
We will be in touch with additional details before your account is moved to E*TRADE
later this year. If you have questions, please call the Capital One Investing Investor
Solutions team at 1-800-747-2537, option 5, Monday–Friday 8 a.m.–9 p.m. ET. To learn
more about E*TRADE, visit etrade.com/capitalone or call 1-800-387-2331 (select “Capital
One” when prompted).
What if I want to transfer my account to another broker-dealer instead of to
E*TRADE?
If you want to transfer your account to another broker-dealer, please review the
information available on the account transfer process available from FINRA at
www.finra.org/investors/understanding-brokerage-account-transfer-process. To
transfer your account to another broker-dealer, you will need to work with the broker-
dealer firm that will be receiving your account (“receiving firm”) to complete a Transfer
Initiation Form (TIF). Once the receiving firm receives the TIF, it will begin the process by
communicating with Capital One Investing via the Automated Customer Account
Transfer Service (ACATS) to process the account transfer.
Please note that transferring an account that holds fractional equity shares creates
certain special considerations.
• To transfer your account, Capital One Investing will move your whole shares into
a transfer account and liquidate your fractional share components for each
security with a fractional position at the closing price for that security as of the
day that the whole shares are moved.
• Because fractional equity shares are not publicly traded. It is not possible to
directly transfer fractional share positions, other than those held in mutual funds,
to another broker-dealer. Regardless of where the account may be moved—to
E*TRADE or to another broker-dealer of your choice—the fractional share
component MUST be liquidated.
• The receiving firm may or may not be able to accommodate the re-establishment
of your fractional share positions depending on its system capabilities. You
should verify with the receiving firm whether or not it will permit you to hold
fractional shares, if that is important to your investment needs.
• Capital One Investing will deliver your account’s whole share position(s), the cash
received for the fractional share liquidation, and fractional and whole shares of
mutual funds to the receiving firm.• It’s important to note that the sale of fractional shares held outside of an
individual retirement account (IRA) may result in tax consequences. Please
consult your tax advisor regarding your personal situation.
Sharebuilder Investment Plan and PortfolioBuilder
Why are the ShareBuilder Investment Plan and PortfolioBuilder products and
services going away?
These are products and services unique to Capital One Investing and are not offered by
E*TRADE.
When is the last day that I can use either the ShareBuilder Investment Plan or
PortfolioBuilder?
The last day to enter a trade for PortfolioBuilder is July 13, 2018. The final deadline to
modify your ShareBuilder Investment Plan will be 5 p.m. ET on July 16, 2018.
What will happen to my existing purchase instructions for the ShareBuilder
Investment Plan?
All purchase instructions and corresponding money transfer instructions that you have
in place will be cancelled when the program is discontinued. All open orders associated
with these programs will be canceled on July 18, 2018.
What alternative products or services does E*TRADE offer?
E*TRADE has a wide range of investment choices to meet your investing goals, including
thousands of mutual funds and over 200 commission-free ETFs3, easy-to-use tools to
build your portfolio, and professionally managed portfolios. We encourage you to visit
etrade.com/capitalone or call them at 1-800-387-2331 (select “Capital One” when
prompted).
What authority does Capital One Investing have to change my investing programs?
Your Customer Account Agreement reflects the discontinuance of the fractional share
programs described above. Section 19B also clarifies how fractional shares in these
programs may be treated when transferring your account to E*TRADE or to another
broker-dealer of your choice.
To transfer your account, Capital One Investing will move your whole shares into a
transfer account and liquidate your fractional share components for each security with a
fractional position at the closing price for that security as of the day that the whole
shares are moved. Because fractional equity shares are not publicly traded. It is notpossible to directly transfer fractional share positions, other than those held in mutual funds, to another broker-dealer. Regardless of where the account may be moved—to E*TRADE or to another broker-dealer of your choice—the fractional share component MUST be liquidated. You can view your account agreement at capitaloneinveseting.com/newagreement. Advantage subscription program Why is the Advantage subscription program going away? The Advantage subscription plan is offered by Capital One Investing and is not available at E*TRADE. When will the Advantage subscription program end? The Advantage subscription program, including the Costco Advantage program, will end on July 17, 2018. The last monthly subscription fee was charged on May 1, 2018. You will not be charged a fee for your subscription in June or July, although you will continue to receive your subscription benefit until July 17, 2018. Does E*TRADE offer pricing or subscription programs similar to the Advantage subscription program? Please visit etrade.com/capitalone or call 1-800-387-2331 (select “Capital One” when prompted) to learn about their available products, programs and associated pricing. Dividend Reinvestment Why is Dividend Reinvestment going away? To support the transition of your account and positions to E*TRADE, it is necessary to end the Dividend Reinvestment program. All programs that would result in partial shares being generated are being discontinued at Capital One Investing as we prepare for the transition. When will Dividend Reinvestment no longer be available? Dividend Reinvestment will be discontinued as of July 17, 2018. How will dividends be paid after July 17, 2018? Whole share stock dividends will be paid as stock, while fractional share stock dividends will be paid as cash (“cash-in-lieu”). Additionally, option dividends will be paid as cash, and cash dividends will continue to be paid as cash.
Does E*TRADE offer Dividend Reinvestment? Yes. E*TRADE allows dividend reinvestment for qualifying investments. If you have questions regarding its policies, visit etrade.com/capitalone or call 1-800-ETRADE-1 (1- 800-387-2331) and select “Capital One” when prompted. 1. Fractional shares held in stocks and exchange-traded funds (ETFs) will be liquidated. Fractional shares held in mutual funds will not be liquidated and will transfer with your account to E*TRADE or any other broker-dealer of your choice. 2. After the transition to E*TRADE, securities products and services will be offered by E*TRADE Securities LLC, Member FINRA/SIPC. 3. You can buy and sell the exchange-traded funds (ETFs) available through the E*TRADE Securities commission-free ETF program without paying brokerage commissions. For margin customers, ETFs purchased through the program are not margin eligible for 30 days from the purchase date. To discourage short-term trading, E*TRADE Securities may charge a short-term trading fee on sales of participating ETFs held for less than 30 days. Investment products are offered by Capital One Investing, LLC, a registered broker-dealer and Member FINRA/SIPC. Investment advisory services are provided by Capital One Advisors, LLC, an SEC-registered investment advisor. Insurance products are offered through Capital One Agency LLC. All are subsidiaries of Capital One Financial Corporation. © 2018 Capital One. Capital One and ShareBuilder are federally registered service marks. All third-party trademarks are the property of their respective owners. Capital One Investing, LLC | PO Box 259008 | Plano, TX 75025 | T 1-800-248-3919 | capitaloneinvesting.com _____________________________________________________________________________________________________________________ The E*TRADE Financial family of companies provides financial services, including trading, investing, and banking products and services, to retail customers. Securities products and services are offered by E*TRADE Securities LLC, Member FINRA/SIPC. Investment advisory services are offered through E*TRADE Capital Management, LLC, a Registered Investment Adviser. E*TRADE Securities LLC and E*TRADE Capital Management LLC are separate but affiliated companies. Neither E*TRADE Financial Corporation nor any of its direct or indirect subsidiaries are affiliated with Capital One Financial Corporation.
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