Fidelity Investments is changing the way it charges wealth management customers for advice, based on the amount they have invested with the firm, a spokesperson for the firm told thewealthnet.
In the US, the new fee structure will operate from July for the more than 800,000 customers of the wealth unit. The charges range from 50 basis points for accounts of more than $5 million to 1.5 percent for customers with less than $500,000. Currently, fees are tied more closely to the individual products.
According to Fidelity, the new system should make it easier for customers to understand what they are paying,
Boston-based Fidelity’s wealth management business has just over $300 billion in assets.