Why Fidelity Require Designated Investments Agreement Signed?
Summary of Main Problem and Solutions Discussed:
- The user is confused about the Designated Investments Agreement (DIA) required for purchasing the JP Morgan Equity Premium Income ETF (JEPI) and how it categorizes their entire account as “Most Aggressive,” despite it being a small part of their overall portfolio.
- The DIA is necessary for purchasing more aggressive securities, confirming the investor’s experience and understanding of risks.
- To complete the DIA, the user should see a prompt on the “Preview Order” screen and can review the agreement before consenting.
- If the DIA prompt doesn’t appear, the user can check if they have it on file by navigating to “Accounts & Trade” > “Account Features” > “Advanced Features in your Trading Profile” > “Account Agreements” tab.
- There are no workarounds for avoiding the DIA requirement to buy JEPI, as it is mandatory for this type of investment.
Here’s the full thread
What is the context of the designated investments agreement when I buy JEPI. Is there something that I’m not understanding about the ETF that is triggers me to go the website and view this document and make my initial buy?
Thanks for joining us in Discord today, and excellent question!
A Designated Investments Agreement (DIA) is generated whenever you attempt to purchase a security that is considered more aggressive than other investment choices. By accepting the agreement, you confirm you are a sophisticated, experienced investor who understands their risks and intends to actively monitor and manage your investments.
That said, I did double-check the JP Morgan Equity Premium Income ETF (JEPI), and this is a security that requires you to fill out a DIA. If you’re attempting to purchase this security and there is not already a DIA on file, you should be prompted to acknowledge the agreement on the “Preview Order” screen of the trade ticket on Fidelity.com. Once you open the PDF document and review the agreement, you can decide whether or not you agree and consent to continue. If you do consent, you will check the box and then click “I Agree.” Once completed, your investment objective will be updated to “Most Aggressive,” but no other features will be added to your account.
If the agreement isn’t popping up as expected, or you aren’t sure if you have the agreement on file, follow these steps online:
1. Click “Accounts & Trade” in the top left corner and select “Account Features” in the dropdown
2. Navigate to the “Advanced Features in your Trading Profile” link under the “Brokerage & Trading” heading
3. Make sure you have the appropriate account selected at the top and review the “Account Agreements” tab
Feel free to follow up with us if you have additional questions! 🟢
The ETF’s objective does state options trading. But categorizing the entire account as most aggressive is not very accurate if its only a small % of the overall portfolio. in the “analyze” section it compares the account to most aggressive is there a workaround for this?
I appreciate the follow-up question and understand what you’re saying. There is no workaround, as a DIA for the account must be filled out to purchase this security. 🟢
Ok no problem thanks for the clarification
You got it! I’m glad I could help out today. 🟢