Fidelity to bump up custody fees for smaller firms
Smaller investment advisers continue to feel the squeeze from custodians. Beginning next year, Fidelity Institutional Wealth Services is…
Smaller investment advisers continue to feel the squeeze from custodians.
Beginning next year, Fidelity Institutional Wealth Services is bumping up the quarterly fee it charges advisers with less than $10 million at the firm, to $2,500 from $1,200, said Fidelity spokesman Steve Austin.
The RIABiz website reported the changes earlier today.
Mr. Austin said the firm alerted affected advisers to the changes last July.
Fidelity will also no longer custody alternative assets if advisers have total assets under $30 million, including assets not held at Fidelity, Mr. Austin said.
Industry observers say the larger custodians like Fidelity have increasingly focused on larger, more profitable advisory firms.
Mr. Austin said Fidelity offers a program to let smaller advisers join other RIA firms and avoid the extra costs being imposed.
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