Bank of America Merrill Lynch is moving to cut account maximum fees by nearly 20% for some clients.
The change means that some investors with slightly less than $1 million in assets with the wirehouse could pay a maximum fee of 2.2% vs. 2.7%, according to a report in The Wall Street Journal. This represents a potential savings of almost $5,000 a year for some fee-based clients in Merrill’s Investment Advisory Program.
In addition, some investors may have already negotiated a lower fee with their advisors, a spokesperson told the paper.
“Ultimately, investment advisory fees are discussed with and agreed upon by clients with their advisor, and are based on a range of factors, including assets, complexity and others,” the company said in a statement shared with ThinkAdvisor on Friday.
Clients were told of the fee cuts in January. They went into effect in February.