Fidelity Offering Custodial Discounts to Independent Advisers

Fidelity Investments is offering a series of fee waivers and price reductions on its custodial platform for independent advisers and their customers beginning Oct. 1 that cover a wide range of services including technology, transition costs, custody and online equity trading. And rather than offer an interim, short-term discount, Fidelity says it is trying to position its platform as offering long-term value through these discounts and ongoing IT upgrades.

The discounts include a 10% to 35% reduction on the annual service fees for the Oracle CRM application on Fidelity WealthCentral. Also, a 50% discount in 2010 and 2011 on the annual cost of Advent’s APX-hosted multi-custodial platform.

For new accounts advisers set up with Fidelity through June 30,2010, Fidelity is waiving annual position fees for alternative investment accounts, annual trustee fees for personal trust accounts and annual custody fees for accounts held in the managed account supermarket.

With respect to trading fees, for new accounts advisers set up with Fidelity through June 30,2010, Fidelity is eliminating commission on electronic equity and options trades.

“These new pricing initiatives are an example of our focus on making the strategic, long-term investments that give advisers the tools to help them succeed,” said Michael Durbin, president of Fidelity Institutional Wealth Services, which custodies $320 billion in assets for 3,500 clients.

“Price should not be a barrier to choosing where to custody a client’s assets,” Durbin added. “With our enhancements, we believe that advisers can now return their focus to finding the best technology and best service that can help them grow their practice over the long term.”

In addition, Fidelity formally launched WealthCentral this year, and the integrated, web-based wealth management platform is now being used by more than 200 independent advisers to house and customize such critical functions as CRM and portfolio management.

Fidelity also offers the Advisor HR Solutions platform to help advisers hire, develop and retain highly production employees, and supplies them with industry insights and market commentary through Insight & Outlook.

“We believe we have raised the bar for custodian platforms when combining our new price initiatives with the launch of our next-generation technology workstation, WealthCentral, comprehensive practice management program, and continued support of a full and open investment product offering.”