Fidelity takes aim at dual registrants

In a move clearly aimed at luring breakaway brokers, Fidelity Investments is about to take the wraps off a program intended for brokers brokers who are dually registered as investment advisers. The Boston-based company estimates that every year, 150 to 200 brokers, each with more than $100 million in assets, join the ranks of registered investment advisers. That in turn translates into $15 billion to $20 billion in assets a year that are up for grabs, said John W. “Jack” Callahan, president of Fidelity Institutional Wealth Services. “It’s one of our biggest initiatives,” he said. “We’re going to try to be strong on both sides.” Currently, dually registered advisers at Fidelity must navigate between two distinct trading platforms, depending on whether the transaction involves a fee or a commission. Fidelity’s commission-based platform is offered through National Financial Services LLC of Boston, while its fee-based platform is run by Fidelity Institutional Wealth Services. About one-third of the 3,500 registered investment advisers on Fidelity’s fee-based platform are dually registered, Mr. Callahan said. For the full report, see the upcoming May 5 issue of InvestmentNews.