Fidelity Investments plans to change where independent financial advisors can store clients’ uninvested money — a move that could hurt returns for investors.
Starting in 2025, Fidelity plans to transfer customers’ cash held in non-retirement accounts overseen by independent financial advisors to FCash, the company’s internal sweep account. FCash’s interest rate is 2.32% as of November 11. That’s less than half of some money market funds. These high-yield funds were often the preferred settlement option for registered investment advisors…
