Fidelity launches new tool for breakaway brokers
Fidelity Investments has launched a service to help retail brokers determine how profitable it would be for them to leave their brokerage house and hang out their own shingle.
The online calculator is a way for Fidelity to boost its revenue from an increasingly important business -- providing support services to independent brokers.
With the top brokerages involved in mergers -- like Morgan Stanley's
Fidelity is one of the largest players in providing services to these brokers. The 3,500 independent advisors it supports oversee $370 billion in client assets.
Fidelity's new service, called Transition Solutions, calculates the income and expenses for a broker running his or her own firm over a 10-year period, based on the most common business models for independent investment advisors.
The Boston-based investment management firm has recruited 170 brokers to its independent advisor services through the first nine months of this year, it said, including Wayne, Pennsylvania-based Stillwater Capital Advisors, with $325 million in assets under management.
(Reporting by Joe Rauch; Editing by Lisa Von Ahn)
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