The customer accounts of Axos Invest carried on the books of Apex Clearing will be transferred to Axos Clearing on or about 01/25/2021 (the “Conversion Date”). This new arrangement simply means that our bookkeeping functions, receipt and delivery of securities purchased and sold by our customers, rights offerings, warrants, tender offers, redemptions and all other clearing and settlement functions will be handled by Axos Clearing. You will continue to receive monthly statements (quarterly if no activity).

 

About Axos Clearing
After transfer, your account will be held by Axos Clearing, an affiliate of Axos Invest. We are both commonly owned by Axos Financial, Inc., a company publicly traded on the New York Stock Exchange under the symbol AX. Axos Clearing is a member of the Securities Investor Protection Corporation (“SIPC”), and provides account protection up to $100 million for correspondent customer assets held by Axos Clearing. The first $500,000 of coverage (including up to $250,000 for cash balances) per client is provided by SIPC as defined by SIPC Rules. Axos Clearing’s policy with Lloyd's of London provides additional “excess SIPC” account coverage. With the combination of SIPC coverage and Lloyd’s of London insurance, accounts held by Axos Clearing are protected up to a total of $100 million per client, including up to $1.15 million for cash balances with an aggregate limit of $100 million. Such coverage does not include transactions or trading losses or declines in the value of securities. Please refer to Axos Clearing’s Customer Agreement that sets forth the terms and conditions that will govern your brokerage account upon its opening, and review the Axos Clearing Privacy Notice.

As always, Axos Invest will continue to be solely responsible for opening, approving and monitoring all activities in your account, and your account coverage will not change. For the month of January 2021, you will receive two account statements from Axos Invest. The first will be from our former clearing firm, Apex Clearing showing account activity and the transfer of all your investment positions. The second will be from Axos Clearing showing account activity and the receipt of all your investment positions.


Fees
There are no fees charged to you as part of this conversion. Keep in mind, however, if you choose to transfer your account(s) from Axos Invest to another firm after the conversion to Axos Clearing, you may incur a $75.00 fee to perform this action.

IRA Notice
If you maintain a Traditional or Roth Retirement Account (“IRA”), this letter constitutes your 30-day notice that Apex Clearing, effective as of the close of business on the Conversion Date, resigns as custodian of your IRA and appoints Axos Clearing as successor custodian of your IRA.

Until such time as Axos Clearing receives a new beneficiary designation for your IRA, you will be deemed to have consented to the application of your current beneficiary designation to your IRA, and if you have not named a beneficiary then you will be deemed to have consented to your spouse as the default beneficiary, and if there is no spouse living at the time of your death then your estate shall be the beneficiary of your IRA.

Privacy Notice
Upon the transfer of your account, the confidential information you provided Axos Invest regarding you and your account will be given to Axos Clearing, which will transmit its own privacy policy to you. During this transition phase, Axos Invest, Apex Clearing and Axos Clearing will continue to comply with SEC Regulation S-P regarding privacy of consumer financial information in connection with the transfer of accounts.

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