The Massachusetts Securities Division said Thursday that it is seeking comment on rule amendments requiring investment advisors in the state to create a standalone fee table for new and existing advisory clients.
“It is not uncommon for consumers to pay different types of fees for advisory services, including retainer fees, subscription fees, and third-party robo-advisor fees,” said Secretary of State William Galvin, the state’s top securities regulator, on Thursday.
The fee table is “intended to make fees and costs more understandable and to enable investors and savers to make informed comparisons between investment advisors,” Galvin said.
Fintech innovations, for instance, have resulted in “evolving fee structures,” Galvin said. “It is no longer the case that advisors simply charge their clients a fee for assets under management.”
Galvin is seeking written comments by May 3. The Securities Division plans to hold a public hearing to receive testimony on the proposed amendments on May 2.
Galvin solicited “preliminary” comments on the idea of a fee table last February.
The request made Thursday, according to a spokesperson in Galvin’s office, “is the formal solicitation under the Massachusetts Administrative Procedures Act, which must precede promulgation of the new regulations.”