The Massachusetts Securities Division wants advisors registered in the state to provide feedback on a proposed rule requiring them to create a fee table for their clients.
“It is not uncommon today for consumers to pay different types of fees for advisory services, including retainer fees, subscription fees, or third-party robo-advisor fees,” said Commonwealth Secretary William Galvin, the state’s top securities regulator, in a Wednesday statement.
The proposed fee table is designed to increase transparency, aid comprehension of advisory fees, and enable investors to comparison-shop for an advisor.
“It is no longer the case that advisors only charge their clients a fee for assets under management,” Galvin said. “Recent changes that have occurred in the financial services industry, many fueled by fintech innovations, have resulted in an evolving fee structure for investment advisors.”