Fidelity Investments announced today that it will offer employee stock purchase plan services to institutional customers, including its current 401(k) clients, as the company pushes the growth of its stock plan services business.
The new service gives participants the ability to model individual stock purchases to view potential gains and tax implications prior to the purchase of their companys shares, as well as view a summary of contributions and change payroll deductions. Employees can also withdraw accumulated cash balances prior to purchase and automatically re-enroll in the plan during future offering periods.
Fidelity expanded its stock option plan offering earlier this year from execution only services for individual investors to include full plan administration for companies with employee stock plans.
Continuing with the expansion, Fidelity is planning to add international capabilities to its stock option related business early next year. These services would include administration and record-keeping support for U.S.-based companies with stock option plan participants based overseas.