Wells Fargo Advisors moves to level fees on 401(k) services
Wells Fargo Advisors is requiring that financial advisers servicing 401(k) plans do so in a level-fee arrangement for new business, as have other large brokerage firms, in response to the Department of Labor’s fiduciary rule, InvestmentNews reported. “We have moved to consulting contracts for new business,” a Wells Fargo Advisors spokeswoman confirmed to InvestmentNews. “We feel this model allows for enhanced transparency around services and fees.” That means advisers servicing 401(k) plans going forward will do so as fiduciaries receiving a flat fee — a percentage of plan assets, for example — for acting in clients’ best interests. Prior to the fiduciary rule, which raises investment-advice standards in retirement accounts, firms such as Wells Fargo would only allow a select group of advisers, maybe only a few hundred, to service retirement plans as fiduciaries.