Fidelity Considers Referral Fee
Fidelity Investments intends to begin charging financial advisers when the firm refers wealthy, or "high net worth," clients to them.
The charge will be applied to referrals from its discount-brokerage program starting in 2010. Fidelity is consulting with key advisers about a fee structure.
The Boston financial-services company has never charged advisers who participate in its Wealth Advisor Solutions referral program. Rivals Charles Schwab Corp. and TD Ameritrade Holding Corp. do.
"We're evaluating a fee for referrals going forward from 2010 for RIAs in the program," said Steven Austin, a spokesman for Fidelity, referring to registered investment advisers. He said conversations with advisers are under way, and he described the feedback as "very positive so far."
Jim Lowell, editor of the independent Fidelity Investor newsletter, says Fidelity's adviser-referral program has been successful, and advisers in it are unlikely to balk at a fee. "Schwab staked out the adviser market 20 years ago, and Fidelity has been chasing them ever since," he says.
Fidelity refers high-net-worth clients, who have at least $1 million in investable assets, to fewer than 125 registered advisers through its program.
By Daisy Maxey
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