Kapitall Generation Clearing Conversion

What is a clearing conversion?

A clearing conversion is where a broker/dealer -- in this case, Kapitall Generation, LLC -- changes its clearing firm. We are changing our clearing firm from Pershing, LLC ("Pershing") to Apex Clearing ("Apex"). As a result of this conversion, your account at Pershing will be transferred to Apex. As a Kapitall Generation customer, there is no action required on your part.

What is a clearing firm?

A clearing firm handles bookkeeping functions, receipt and delivery of securities purchased and sold by our customers, banking transactions, rights offerings, warrants, tender offers, redemptions and all other clearing and settlement functions for the broker-dealer.

Why is Kapitall Generation doing a clearing conversion?

To allow greater flexibility to deliver more exciting products to you. This means having the ability to offer our customers margin, shorting, mutual funds, retirement accounts, and the possibility for advisory services all in the near future.

We believe our relationship with Apex and their cutting-edge technology will be extremely beneficial to you as we continue to enhance the depth of products and services you receive at Kapitall Generation.

When is the Conversion?

The Conversion will occur on or about September 5, 2014. Kapitall Generation customer accounts at Pershing will be transferred to Apex on or about September 5, 2014.

What Will Happen to My Account?

All securities and balances in your account at Pershing will be transferred in full to Apex. After your account is transferred, Apex will handle clearing and settlement services for financial and securities transactions.

Both Apex and Pershing are members of the Securities Investor Protection Corporation(SIPC). Securities in your account will continue to be protected up to $500,000 (including up to $250,000 as to cash claims). In addition to SIPC coverage, Apex has provided, through an independent insurer, additional coverage that raises total coverage for securities to as much as $25 Million ($100 million aggregate).

For the month of September, you will receive two account statements from Kapitall Generation. The first will be from Pershing showing account activity up to and including the transfer of all your investment positions. The second will be from Apex showing account activity following the receipt of all your investment positions. Going forward, Apex will deliver to you monthly statements (quarterly if no activity).

As always, Kapitall Generation will continue to be solely responsible for opening, approving and monitoring all activities in your account, and your account coverage will not change.

Can I opt out of the Conversion?

If you do not wish your account to be transferred to Apex, you should promptly make arrangements to have the cash and securities held in your account transferred to another firm of your choosing. There will be no charge for the transfer of your account to an alternate broker dealer. You will need to fill out an ACAT form, which you can obtain from your new broker. Your selected broker will submit the completed ACAT form to make the necessary arrangements.

Unless we receive written instructions from you to the contrary, your account will be automatically transferred the weekend of September 5, 2014, to Apex.

Are there any fees associated with this Conversion?

There are no charges or fees if you do not object to this transfer. However, you may incur a $50.00 fee if you choose to transfer your account(s) from Kapitall Generation to another firm after 30 days of the transfer. If this subsequent transfer is received by Apex within 30 calendar days of your account being transferred to Apex neither Kapitall Generation nor Apex will charge you a fee for the transfer.

Have more questions? Submit a request


Please sign in to leave a comment.