Fidelity Investments is overhauling what it charges clients for financial advice, The Wall Street Journal reports.
According to the report, costs will be tied strictly to how much a client invests with Fidelity, whereas the current fee model assigns prices according to a varying mix of a customer’s investment preferences, degree of interaction with Fidelity and overall assets.
Nasdaq also reports that Fidelity is moving to a single unified fee schedule based on the assets under management a client has with Fidelity.
Under the new fee model, The Journal says, some new customers will pay less than they would today and some will pay more, according to regulatory filings. Current Fidelity customers will pay the same or less because the firm will grant waivers to keep existing clients’ fees from rising.
The new fees range from 50 basis points for accounts of more than $5 million to 1.5% for customers with less than $500,000, Bloomberg reports.