Important Considerations
No Assurance that your shares will be lent
The securities selected, duration of the loan, and daily rate vary depending on supply and demand.
Effect on Investments
Securities we borrow from you may be used to facilitate short selling which could contribute to lowering the price of the securities on loan.
Dividends paid in lieu
If a non-cash dividend is paid on a position which is on loan, you will receive a cash payment in lieu at least equal to the amount. Payments-in-lieu may carry a higher tax consequences in non-retirement accounts.
Important disclosures regarding the Securities Lending Program include the following:
• The Securities Investor Protection Act of 1970 does not protect your Loaned/Collateralized Securities. The collateral deposited with BMO may constitute the only source of satisfaction of Siebert's obligation in the event the borrower of your
loaned securities fails to return the securities.
• The Fully Paid Lending Program is only a means to realize increased income on certain securities and does not provide any downside protection against your lending positions or portfolio.
• You have the right to end participation in the Fully Paid Lending Program at any time in accordance with section 20.3 of the Master Securities Lending Agreement
• You relinquish the ability to exercise voting rights on borrowed securities. If you would like to participate in a proxy vote for shares on loan, you must recall the shares in advance of the proxy record date. Returns for proxy votes are on
a best-efforts basis.
• Loaned securities may be, or may become, "hard to borrow" because of short-selling, scarcity of available lending supply, or corporate events that may affect liquidity in a security.
• Cash distributions paid on securities borrowed by Siebert will be credited to your brokerage account in the form of a miscellaneous cash payment. Such payments may have different taxable consequences than receipt of the actual dividends from
the issuer.
• The amount of compensation or loan fee to be paid to you will be disclosed on a Fully Paid Lending Notice similar to a Trade Confirmation provided to you when Siebert borrows your Loaned Securities, and you will receive notice of any change
in such rate of compensation.
• The Lending Rate is based on the relative value of the Loaned Security, which is determined by several factors, including borrowing demand, the overall lendable supply of the security, short selling and hedging interest and general market conditions.
• Siebert is not obligated to borrow securities at any time and your enrollment in the program does not guarantee that your securities will be borrowed.
• Siebert does not provide legal or tax advice. Always consult an attorney or tax professional regarding any specific tax or legal questions.