TLH QSF Fair Fund

FINAL UPDATE: The distribution phase is now completed and monies from payments not negotiated have been transferred to the SEC for transmittal to the United States Treasury. The Distribution Administrator can no longer issue or make payments from the TLH QSF Fair Fund.

ATTENTION: The TLH QSF Fair Fund distribution is closing soon. If you need to have your check reissued, please contact the Administrator on or before March 26, 2024 at 844-292-8016, Monday through Friday, between 9:00 AM and 6:00PM ET. Please cash your original or reissued check before April 29, 2024 otherwise you will forfeit this payment. Monies that are not cashed will be returned to the United States Treasury.

NOTE: Please DO NOT try to negotiate your original or reissued check(s) after April 29, 2024 as the payment will no longer be valid and your banking institution may charge you a fee for presenting a stale dated check. Neither TLH QSF Fair Fund nor the distribution fund Administrator will be responsible for fees that your bank may charge for presenting a check(s) after April 29, 2024.

1. Why did I receive this check or credit to my account?

You are entitled to receive a payment from the TLH QSF Fair Fund arising out of the Betterment LLC (“Betterment” or “Respondent”), United States Securities and Exchange Commission (“SEC”) Administrative Proceeding File No. 3-21373. Administrative Proceeding File No. 3-21373.

2. Why did I receive this amount?

Payments to affected advisory clients were determined based on a calculation methodology reviewed and approved by the SEC.

3. How long do I have to cash the check?

All checks initially issued have a “stale date” of 90 days (i.e., the check must be cashed within 90 days of the check date). Any reissued checks have a stale date of 30 days. It is important you cash your check(s) as soon as possible to ensure you receive all money allocated to you from the distribution. Checks WILL NOT be honored after the stale date.

4. What happens if I do not cash the distribution check?

Once the distribution is closed, the funds no longer are available, and checks cannot be cashed. Checks WILL NOT be honored after the check stale date. All uncashed check proceeds will be returned to the SEC and ultimately the U.S. Treasury pursuant to the settlement Order.

5. What if I don't receive a check or credit but I believe I should? What do I need to do if I disagree with the amount of the distribution check I received?

The payment amount was reviewed and approved by the SEC and includes an interest calculation. Payment amounts of less than $10.00 will not be distributed, as agreed with the SEC due to the cost of processing small dollar amounts.

6. I have more than one account. Will I receive one check or credit, or multiple checks or credits?

Depending on the account registration, address of record and eligibility, clients owning more than one account may receive one or more checks or credits.

7. What was the conduct underlying this settlement?

The settlement primarily covers certain disclosure and operational issues involving automated tax loss harvesting (“TLH”) between January 2016 and April 2019. The SEC found that two coding issues caused TLH not to operate for a limited subset of clients, and that certain disclosures did not fully reflect the operation of TLH. The settlement also covers recordkeeping, policies & procedures, and client agreement notifications.

8. Why did Betterment settle?

While Betterment reached a settlement with the SEC, it neither admits nor denies any wrongdoing. It fully cooperated with the SEC’s inquiry and is pleased to have reached a resolution on these issues. The SEC Order acknowledges that Betterment addressed the TLH-related coding and disclosure issues by 2019. In the years since 2019, Betterment has also made significant investments to build and strengthen its compliance program.

9. What are the tax ramifications of this distribution?

Due to the complexities involved, we have included additional information about the tax consequences of this distribution in a Statement to Affected Advisory Client’s (or Statement), which is available on the Tax Information page of this website. The Statement is not intended as tax advice but describes the tax-reporting positions taken and points out some issues eligible clients should consider, including the capital and interest components of the payment in addition to the type of account involved. You should review the information in the Statement with your tax advisor.

10. How can I contact Betterment?

If you have questions related to the settlement, or your current or past account, you can contact Betterment at [email protected].

11. My check(s) has been lost/destroyed. What should I do?

You can request a replacement check by sending a signed letter of instruction (LOI) requesting a replacement check via email, fax or by using the following mailing address.

Please forward your replacement request to:

TLH QSF Fair Fund
C/o SS&C GIDS, Inc.
PO Box 219994
Kansas City, MO 64121-9994

Upon receipt, we will reissue a replacement check exactly as it was originally issued. Please allow 15 days from the date we receive your original request to receive the replacement check. Note you will have 30 days to cash the new check; otherwise, you may no longer be entitled to the proceeds.