A Flush Fidelity Tests Referral Program, Plans Name Change

During a Q&A session with McColgan moderated by Callahan, the company’s latest referral program was brought up, with one advisor questioning the enthusiasm of Fidelity’s local retail offices to make appropriate referrals. McColgan responded that “that’s why they’re pilot programs–to work out the kinks.” She then went on to say in her direct way that “all of us are customers, competitors, and counterparts,” and that “drawing bright lines between different parts of the business is impossible.” In discussing the referral program in a meeting with the press later, McColgan stressed that even if it wanted to, Fidelity could never “handle the high-end needs” of wealthy clients, and said “we have to educate those reps” who for a long time have been assisting their retail clients, but asserted that when the referral process works well, “it’s a symbiotic relationship.”

McColgan was recently promoted to the position of president, distribution and operations, for Fideilty Investments, in addition to retaining the presidency of Fidelity Brokerage Company. In an interview, she mentioned that “the chairman [Ned Johnson] has been supportive of the advisor business for years. Sometimes you need the right chemistry; I’m very happy with the team we have now.”