Level fee advocates in the 401(k) side of the mutual fund business are about to gain a strong ally: Fidelity Investments Institutional Services
. Fidelity spokesman Steve Austin confirmed that in August the Boston-based mutual fund titan will switch its Advisor 401(k) platform to a system where the plan advisor receives one flat fee from Fidelity (instead of several different fees in the form of 12b-1s from the various fund firms whose offerings are included in the plan).
' Jessica Toonkel Marquez first reported
on the move.
Austin also noted that a "small number" of advisors have worked on a level-fee basis for five years via Fidelity's institutional (I-class) shares).
The move comes even as some broker-dealers -- including indie B-Ds Commonwealth Financial Network
, as well as the UBS
wirehouse -- have created level-fee programs for their retirement-plan-focused advisors (see our sister publication, The 401kWire
. And Fidelity isn't the only 401(k) provider offering a level-fee advisor solution: Paychex
added a level feel option last week, and Ascensus
is another recent convert (see The 401kWire
Neil Anderson, Managing Editor
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