UBS raising client fees, factoring in liabilities

Next year, some clients will see higher annual fees unless they have $2 million in assets and liabilities across accounts, or alter their accounts to gain fee waivers

Nov 16, 2017 @ 3:29 pm

By Bruce Kelly

UBS Wealth Management Americas is changing the fees it charges clients next year and will take into account both liabilities – explicitly mortgages and securities based loans – and assets.

Currently, UBS charges an annual account fee, in the range of $150 to $500, on clients with $1 million or less of total assets in all accounts, including Resource Management Accounts, or RMAs. Starting next December, the fee on RMAs and other accounts will increase and range from $175 to $500, according to a company source.

Clients with less than $2 million in assets and liabilities will be charged the fee, the source said, adding that there were several ways for clients to have a fee waiver.

They include: a client adding $250,000 of net new money to an account; opening a UBS Visa credit card account known as the "Infinite" card that charges a $495 annual fee; and using a UBS account aggregating tool that shows other brokerage accounts and liabilities that will count towards the $2 million minimum.

The goal is for advisers to have discussions with clients about their entire financial picture, the source said.

Likewise, annual fees on IRA accounts are increasing from $75 to $100, said the source, with ways for clients to have the fee waived.

Industry website AdvisorHub first published a story about changes in customer account fees Thursday morning.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Ric Edelman: 3 factors transforming the financial advisory industry

We are at the "knee in the curve" of a transformation of the financial advice industry, according to Ric Edelman. But what's next and how will it shape your practice of the future?

Video Spotlight

Help Clients Be Prepared, Not Surprised

Sponsored by Prudential

Recommended Video

Path to growth

Latest news & opinion

Tax update: Brady says sales tax deduction in final bill

Taxpayers will be able to deduct state income taxes or state sales taxes in addition to property levies — up to a $10,000 cap.

Critics say regulation hasn't curbed overly rosy projections for indexed universal life insurance

They say rule didn't go far enough and more stringent measures may be necessary.

Broker, retirement groups make last-minute pleas to change tax legislation

Pass-through provisions are target of groups representing employee-model brokerage firms, as well as retirement plan advisers.

House and Senate reach tentative compromise for tax overhaul

Lawmakers still need to get a cost analysis of their agreement, so it's not yet definite, according to a source.

Advisers' biggest fears for 2018

What keeps advisers up at night.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print