Fidelity has introduced an all-in-one technology stack as well as an advisory package for small and medium-sized registered investment advisers who care with the firm, both available at special prices.

The comprehensive technology staff includes components of Wealthscape, Fidelity's custodial platform, eMoney's financial planning software, and Advyzon's operational and portfolio software and investment management tools. RIAs using the technology suite will receive special pricing, with eMoney and Advyzon offering up to 10% and 20%, respectively, in potential savings, it said Noni Robinson, head of emerging RIAs at Fidelity Institutional Wealth Management Services, a division of Fidelity Investments.

While many larger RIAs already have their own technology stack and tend to have more customized needs, Robinson said Fidelity wanted to provide the key components needed to run an advisory business day-to-day for smaller firms.

“The goal of this package is really to reduce the time it takes advisors to create a technology stack that's well integrated,” she said. “One of the things I heard firsthand in conversations with existing customers and potential customers was, 'It takes a lot of research and time to really define what a well-integrated technology stack should be.' This is particularly challenging for small and medium-sized firms that do not have the resources and costs associated with doing so.”

Fidelity defines small as firms with $250 million in client assets or less, while midsize firms are those with $250 million to $500 million. Robinson said that just under half of the RIAs that deal with Fidelity fit into this small category.

The advisory suite includes Wealthscape, eMoney and FMAX Essentials, a new managed account platform. FMAX Essentials is a stripped down version of Xchange Managed Loyalty Account (FMAX) platform and is available at a lower price than FMAX. FMAX Essentials represents approximately 25% of the investment options available at FMAX, and these options include ETFs, mutual funds, separately managed accounts and unified managed accounts in both Fidelity and third-party products.

Robinson said the advisory suite is designed for firms that often already have an existing technology stack, but are looking for more sophisticated managed account or investment management tools to grow their practices.

Fidelity has served RIAs of all sizes for many years, but Robinson was formed about two years ago to develop a more focused strategy for small and midsize firms.

“Supporting small and medium-sized firms is not new,” she said. “What we've realized is that we have a great opportunity to help with the common pain points for smaller firms which are resources and cost. When we think about the offerings we're bringing to market, we're helping them put together technology stacks that are very well integrated and can grow with them.”

There has been a lot of talk in recent years about small RIA firms and the service they receive from large custodians. When Charles Schwab announced it was buying TD Ameritrade in 2019, smaller RIAs expressed mixed feelings. TD Ameritrade was the lead custodian for it some advisers who were too small for Schwab. While some of those advisors welcomed the Schwab name being attached to their business, there were others who felt concerned that their client experience would be diminished (ie. going without individual relationship managers). Schwab has since expressed its commitment to smaller advisors, and in December 2019, caretaker hired Tom Bradleyformer president of TD Ameritrade's retail and institutional business, to focus on the segment of the business serving RIAs with $100 million or less.