In Practice March 22, 2010

Level Comp Coming Soon from Fidelity for 401(k) Advisers

Fidelity Investments will be unveiling a new fee structure as well as enhanced reporting and payment processes for advisers who sell its plans.
Reported by

Later this year, the investment firm will begin allowing advisers selling its plans to receive level 12(b)-1 mutual fund fees, as first reported by InvestmentNews and confirmed by Fidelity spokesman Steve Austin. He said the firm is aiming for August to launch the changes.

For about five years, Fidelity has allowed advisers to receive level fees through institutional shares. In response to increasing interest from advisers, the firm will implement the changes to enable advisers to receive level fees across other fund shares, Austin said. “The program continues to evolve as the marketplace has evolved,” he told PLANADVISER.

In addition, Austin said Fidelity will be rolling out enhanced reporting and payment processes for adviser compensation. “Our goal is to make doing business easier for advisers,” Austin said.

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