Broker/dealer firms and independent advisors now make up nearly half of the assets and three-quarters of the cash flowing into Fidelity Investments’ huge brokerage business, according to the unit’s president, Ellyn McColgan. She disclosed the figures as Fidelity opened its annual Executive Forum for RIA and B/D clients in Palm Beach, Florida, where she pledged to make the firms registered investment advisor unit, now #2 to Charles Schwab, “the largest outsource provider for all independent RIAs.”
McColgan also announced two enhancements for Fidelity’s institutional businesses. The firm has inked a deal with Envestnet Asset Management to provide unified managed account services to its B/D and RIA clients. McColgan also promised to make available to advisors portfolio management and client relationship applications in a single platform. She conceded, however, that while her firm is investing hundreds of millions of dollars annually in new technologies–$700 million in 2004 alone–”we have not always delivered outstanding service as we promised you.” Without specifying the shortcomings, McColgan pledged “to make it better.”
The Fidelity Brokerage Company president also disclosed that: