A report sheds new light on a big change to how the US investments giant is charging clients.

Fidelity Investments, which as previously announced is changing how it charges affluent clients for financial advice, will mean some people pay more, while others will see cuts, according to the Wall Street Journal, citing regulatory filings.

The changes to the charging system take effect from July. Costs will be linked to how much a client invests with Fidelity. The approach replaces the existing model that assigns prices according to a varying mix of a customer’s investment preferences, degree of interaction with Fidelity and overall assets. At the end of December, 2017, Fidelity Investments oversaw a total of $324.8 billion in client assets.

Some new customers will pay less than they would today and some will pay more, according to regulatory filings that haven't been previously reported, the WSJ said.

Current Fidelity customers will pay the same or less because the firm will grant waivers to keep existing clients’ fees from rising.

The changes come against a background of a shift by the US financial industry towards fee-based advice and away from the trail commissions model associated with broker/dealers. Although it still faces legislative obstacles, the Department of Labor’s fiduciary rule that requires advisors to consider the “best interests” of clients is pushing such changes. 

The WSJ quoted a Fidelity spokesperson as saying the changes were caused by customer demand. They will lead to a “unified offering and a single fee schedule,” the spokesperson was quoted as saying.

Among other changes affecting the industry are how advisors are paid. Merrill Lynch has adjusted its approach (see here), for example.