We are excited to announce an important change that will take place at Crews & Associates Inc. ("Crews") in 2021, making it a year of transformation with numerous benefits for you.
Since the day our doors opened in 1979, Crews has and will continue to recognize that it's not prudent to take a "one size fits all" approach. We combine this methodology with a mission to act in the best interest of our clients in order to provide premier products and outstanding service. We recognize that each of our clients' priorities and goals are unique, and it's imperative that our platforms reflect this mission to give you peace of mind.
Since 2019, Crews' Senior Leadership Team has surveyed the firm to assess and evaluate the level of satisfaction of the custodial services available for our clients. Advances in technology led Crews, in late 2020, to make the decision to become fully disclosed through our existing relationship with Pershing LLC ("Pershing"), a subsidiary of the Bank of New York Mellon Corporation. Crews has cleared its equity business through Pershing since 1990, and we look forward to enhancing this relationship with the addition of our fixed-income activity.
For over 80 years, Pershing has been recognized as a global investment firm and industry leader in clearing and custody services, with $2 trillion in assets representing 7 million global investor accounts. Pershing is recognized as a global technology leader for financial institutions with extensive industry experience.
Our expanded partnership with Pershing will improve our ability to collaborate more closely with you on your financial journey and give you access to best-in-class financial planning and brokerage tools and services that will improve your overall investing experience. We are confident this new chapter will provide key upticks for our clients in order to deliver comprehensive wealth management and broker-dealer solutions.
Our collaboration with Pershing will provide Crews with upgraded operations and technology platforms, enabling us to deliver a more streamlined experience to you. Pershing solutions will carry out certain aspects of our daily business operations, and below are just a few of the benefits you will soon enjoy:
As our clearing firm, Pershing will perform certain centralized cashiering, bookkeeping, and execution functions for clients' cash and margin accounts. In addition, Pershing will handle the delivery and receipt of securities purchased and sold by clients, receive and distribute dividends and other distributions, and process exchange offers, rights offerings, warrant exercises, tender offers, and redemptions.
We hope you will be as excited as we are to introduce these valuable enhancements. Crews appreciates the confidence you place in us to provide knowledgeable assistance to you and your family.
As part of this transition to Pershing, you may receive additional notifications over the next few weeks. Should any paperwork need to be updated or signed, you will be notified. Depending on the type of account(s) you have, e.g., individual, joint, IRA, etc., action may be required by you to get everything reestablished at Pershing. Your representative will contact you if any paperwork needs your attention. It is our goal to make this conversion straightforward with clear instructions.
We've put together some commonly asked questions to give you more information about this conversion, what to expect, and how it will affect your account. Our objective is to keep you informed every step of the way.
1. When will this change go into effect?
This change becomes effective at the close of business on November 8, 2021. We will keep you informed of any changes.
2. Will I keep my current financial advisor / investment professional?
Yes, your financial advisor / investment professional will remain the same.
3. Will all holdings and cost basis information convert into my new account(s)?
Yes, each holding and all cost basis information will convert seamlessly into your new account(s).
4. Will I have online access to my account(s)?
Currently, through the weekend of November 6, if you haven't already, you will need to sign up for online access to your account through NetXInvestor, a free service that is available 24 hours a day, seven days a week. Clients can enroll in this service at https://www.netxinvestor.com/nxi/registration#main-container#section and click through the online registration process. Rest assured that Crews will continue to be solely responsible for opening, approving, and monitoring all activities in your accounts, your account representative will remain the same, and your account coverage will not change.
5. How are tax reporting and statements affected?
Two 1099s will come in 2022 for the year of 2021. The first 1099 will be from Crews, showing account activity and the transfer of all your investment positions as of November 4, 2021. The second 1099 will be from Pershing showing the receipt of all your investment positions and account activity for the remainder of the month. Some clients may receive a statement from Crews for the month of December as well, depending on residual sweeps after conversion, e.g., corporate actions, dividends, etc.
6. Do I need to sign anything?
Depending on your account type, you may receive account forms that are required for us to properly administer and maintain your account. Please sign and return these documents at your earliest convenience in the envelope that will be provided by the deadline included in the packet. If you have automated transfers or direct deposits posting to your account, from Social Security or a payroll, for example, you will need to contact the organizations initiating these transfers so that you can complete new paperwork after you receive your new account number. If you need additional information, please contact your representative.
7. Why did Crews make this switch?
Our team spent over 12 months evaluating several new platforms and comparing the offerings. Crews is committed to having a clearing and custody firm that provides the best possible services, tools, and products available for our representatives, support staff, and most importantly, clients. Ultimately, we chose Pershing's NetX360 and NetXInvestor platforms as it will give your representative superior tools to service your accounts and will give you an enhanced set of online tools at your fingertips.
8. How much will I be charged to transfer my account to Pershing?
There will be no cost to you for the transfer of your account to Pershing. Should you choose to transfer your account elsewhere prior to the conversion, all transfer fees will be waived. If you transfer your account after the conversion, you will be charged a $95 fee for retail accounts and a $143.50 fee for IRA accounts in connection with such transfer.
9. Who should I contact with any questions?
If you have any questions or concerns, please contact your account representative, call the Crews Pershing Transition Team at 501-534-2350, or email us at email@example.com for assistance.
10. Are my account assets safe during a conversion?
Protecting your assets and information is our top priority. Furthermore, your account assets will be protected by the Securities Investors Protection Corporation (SIPC). SIPC protection includes coverage for up to $500,000 for securities and cash (including a $250,000 limit for cash only). However, SIPC protection does not cover a decline in the value of a customer's assets due to market loss. For further information about SIPC, please view the organization's website at www.sipc.org.
Crews is compliant with Securities and Exchange Commission (SEC) Regulation S-P (Privacy of Consumer Financial Information) in connection with the transfer of your account to Pershing.