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55 New Clients Cite Fidelity's Breakaway Transition Experience, New HybridOneSM Offering and Development of Integrated Workstation Among Key Factors for Selecting Company
BOSTON, September 22, 2008 -- Fidelity Investments® today announced that 55 breakaway brokers, bringing more than $7 billion in assets, have selected the company as the custodian for their newly established independent registered investment advisor (RIA) firms during the first six months of 2008, more than doubling the assets from new breakaway clients during all of 2007.
New breakaway clients cite several key factors in selecting Fidelity as their custodian, including the company's years of experience working closely with breakaway firms to help guide them through the transition, the coming launch of the Fidelity WealthCentral®brokerage workstation, and the recently launched HybridOneSM offering for dually-registered advisors.
"Making the decision to break away and establish an RIA firm offers many rewards, but it also has many challenges such as understanding the financial, legal and professional obligations," said Steve Adams, Adams Asset Advisors, which manages more than $1 billion. "Following an extensive due diligence process, it was clear to us that Fidelity was the right choice as our custodian. Their extensive technology and product platforms combined with their experience working with other breakaways and ability to work with us in a confidential manner, better prepared us to walk our staff through the transition and structure a practice to suit ours' as well as our clients' needs1."
"We have helped hundreds of registered reps successfully start their own RIA firms over the last few years and expect that trend toward the independent advisory model to accelerate," said Scott Dell'Orfano, executive vice president, Fidelity Institutional Wealth ServicesSM. "This level of experience has enabled us to build a comprehensive program that brings together the critical resources breakaways may need to more easily navigate the four common stages associated with establishing an RIA, from making the commitment and defining their business model to preparing their organizational infrastructure and growing their practice."
Fidelity Offering Helps Simplify Transition for Breakaways
Fidelity has long been recognized as a leading provider and resource for breakaway brokers. Supported by a comprehensive array of resources and tools, Fidelity has a dedicated team of experienced professionals who help guide breakaways through the often challenging process of establishing an independent RIA and sustaining its ongoing growth. Among the resources Fidelity makes available to breakaway brokers are:
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Fidelity WealthCentral -- A Web-based wealth management solution that will integrate advisors' most critical operational functions within a single platform. WealthCentral is scheduled to become available in late 2008.
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HybridOne -- A new offering designed to provide dually registered broker/dealer and Registered Investment Advisor (RIA) firms, as well as individual brokers and advisors, an easier way to manage both their commission- and fee-based business2.
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One-on-One Consultations -- Personal and professional guidance from experienced, knowledgeable Fidelity account executives as well as from former brokers who have successfully established their own independent advisory firm.
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Rapid Conversion Team -- A focused, integrated team made up of professionals from Fidelity's sales, implementation, training, service, transaction processing and technology areas that helps new RIAs make a quick and smooth conversion onto the Fidelity platform.
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The Fidelity Practice Management ProgramSM -- One of the industry's deepest practice management programs, the program is designed to help breakaways access the technology, products and services they need to not only make a smooth transition but also help them to grow their business. Program features include Office Set-up, Marketing Consulting, IT Consulting and Transition Planning, among others.
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"We found that reps making the switch to the RIA model require a focused approach from experienced professionals who can lead them through the entire process," said Dell'Orfano. "We work closely and confidentially with reps who've made the decision to breakaway so that they can be confident they have made the right decision, and, subsequently, make a smooth transition so that their business and clients' trust remains fully intact."
About Fidelity Institutional Wealth Services
Fidelity Institutional Wealth Services is a leading provider of trading, custody and brokerage services to Registered Investment Advisors, Trust Institutions and Third Party Administrators. The company is able to leverage the capital, resources and expertise of the Fidelity organization, one of the world's largest financial services companies, on behalf of its clients. This includes access to a comprehensive set of products and services, innovative investment tools and research, an integrated brokerage and trust platform, and dedicated client service professionals -- all designed to help its clients thrive by growing their businesses, more effectively meeting customer needs, and enhancing operational efficiency and profitability. Fidelity Institutional Wealth Services custodies more than $355 billion in assets on behalf of over 3,800 clients, as of June 30, 2008. For more information about Fidelity Institutional Wealth Services, please visit http://fiws.fidelity.com.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of more than $3.2 trillion, including managed assets of $1.5 trillion as of August 31, 2008. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to 24 million individuals and institutions as well as through 5,500 financial intermediary firms. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, the largest mutual fund supermarket and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.
1The experience of this client may not be representative of the experience of all clients and is not indicative of future success.
2Please note that there are different regulatory restrictions necessary to conduct commission- and fee-based business.
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Registered trademarks and service marks appearing herein are the property of FMR LLC.
The third party service providers listed are independent companies and are not affiliated with Fidelity Investments. Listing them does not suggest a recommendation or endorsement by Fidelity.
Clearing, custody, or other brokerage services may be provided by National Financial Services LLC or Fidelity Brokerage Services LLC, Member NYSE, SIPC.
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