# Custody's no-fee model strains as custodians float new charges URL: https://www.financialadvsr.com/article/custodys-no-fee-model-strains-as-custodians-float-new-1e1fe4 Published: November 13, 2026 By: Sterling Park, Chief Analyst Section: Analysis Publisher: Financial ADVSR (https://www.financialadvsr.com) Fidelity has dropped sub-$100 million RIAs, Schwab keeps its no-fee base for now, and Raymond James has named fees as an option, showing custody's cost being reassigned. RIABiz reported that Rick Wurster, speaking at IMPACT, made an off-hand offer to trade sweep cash for a custody fee charged to RIAs. The outlet read the remark as a sign of unease over the hidden costs that drive the legacy custody model. It is the clearest signal in this week's coverage that the no-fee custody model is being questioned, and the other reports show custodians and new entrants working out who should pay for custody when the visible price is zero. The remark was offered casually, and RIABiz treats it as a window into the debate rather than as a policy. According to RIABiz, Fidelity's answer has been to drop RIAs with under $100 million in assets and to offer those firms no fee option. Schwab, for now, keeps its large group of small RIAs on a no-fee model, which RIABiz quoted Michael Kitces as calling broken. The two responses point in opposite directions. The coverage does not show which one will prove durable, and it does not show whether either custodian has settled on a long-term approach. Financial Planning reported that Raymond James CEO Paul Shoukry says the firm will keep winning talent through technology rather than large recruiting payments, a contest he suggested smaller firms will struggle to match. Citywire RIA reported that Raymond James plans to put $1.1 billion into technology and artificial intelligence to pull advisors into its wealth management business. AdvisorHub reported that Shoukry signaled openness to a platform fee or changes to advisor payouts if cash sweep revenue falls, while making clear no changes were imminent. Set side by side, those comments describe a firm competing on spending while keeping its pricing options open. The coverage does not connect the $1.1 billion to sweep income, and nothing in it shows how that investment will be funded. What it does show is that the fee question has moved into the public conversation a major platform is willing to have, even though the answer is not yet a change. Citywire RIA reported that Halbert Hargrove, a $4.2 billion RIA, left the Schwab Advisor Network, though a spokesperson noted the firm still custodies millions in assets with Schwab. The same outlet reported that the firm is a longtime custody partner of Fidelity. Separately, Citywire RIA reported that a 19-person team leaving Osaic formed Select Wealth Partners in New York and uses Raymond James' custody platform. None of the reports gives a reason for either move, so neither can be read as a verdict on a custodian. Together they document firms that keep relationships with more than one custodian. Financial Planning reported that State Street and Savvy, in their early custody businesses, did not disclose specific fees, and that both chose to outsource parts of the work to outside firms. InvestmentNews reported that Savvy raised $100 million and launched a white-label custody platform, and it asked whether advisors are willing to pay a revenue share for a technology platform. That is the central test. A revenue share turns an embedded cost into a line item that can be compared, which a no-fee arrangement keeps out of view. Access is tightening alongside pricing. InvestmentNews reported that Vise will make all four of its leverage levels available at Interactive Brokers, and that Schwab and Fidelity are tightening access for RIAs pursuing tax alpha. Citywire RIA reported that Schwab's new MCP server is in pilot with a select group of clients using Anthropic's Claude, with plans to expand client access, and RIABiz noted that the server leaves RIAs out for now. These are specific moves by named firms, and the reports do not establish a broader rule for how custodians allocate new capabilities or access. The cost of these choices falls unevenly. Small RIAs have less negotiating weight with a custodian than larger firms and less room to absorb a new charge, which is why Fidelity's exit from smaller RIAs and Schwab's decision to keep them on a no-fee model read so differently. The sources do not compare independent RIA owners with broker-dealer advisors, so how each group would feel a custody fee depends on terms that have not been published. For advisors and firm leaders, the next signals are concrete. Watch whether Raymond James moves from conditional language to an actual pricing change if sweep revenue declines, and whether Schwab extends its MCP server beyond the pilot. Watch whether Savvy's revenue-share model draws enough takers to become a reference point, and whether anyone adopts the custody fee that Wurster floated. Each answer will show whether custody pricing becomes explicit or whether its cost is simply reassigned. Key facts: - RIABiz reported that Fidelity dropped RIAs with under $100 million in assets and offers them no fee option. - Citywire RIA reported that Raymond James plans to invest $1.1 billion in technology and AI to attract advisors. - AdvisorHub reported that Raymond James CEO Paul Shoukry cited a platform fee or advisor pay changes as options if cash sweep revenue falls. - InvestmentNews reported that Savvy raised $100 million and launched a white-label custody platform. - Citywire RIA reported that Halbert Hargrove, a $4.2 billion RIA, left the Schwab Advisor Network but still custodies millions in assets with Schwab. Why it matters: Custody economics help determine which advisors can afford to go independent and which platforms they can justify. Teams weighing a move should ask how each custodian earns its revenue and what a fee would cost them. Firm leaders should expect advisors to compare platform terms more explicitly as pricing becomes visible. Firms in this story, from their SEC Form ADV filings: - Halbert Hargrove (Long Beach, CA; SEC CRD 105515): $4.2B regulatory assets under management, 1,518 clients, 36 advisory staff, 26 offices, custodians Fidelity, Charles Schwab; Form ADV filed 2026-03-28. https://www.financialadvsr.com/rias/halbert-hargrove Sources: - RIABiz: https://riabiz.com/a/2026/11/13/schwab-surprises-analysts-with-extra-rapid-launch-of-own-mcp-servers-also-leaping-from-read-only-to-agentic-get-stuff-done-ai-it-leaves-rias-out-for-now-and-makes-anthropics-days-numbered-as-schwabs-exclusive-llm - Financial Planning: https://www.financial-planning.com/news/raymond-james-ceo-tech-not-the-biggest-check-wins-recruits - Financial Planning: https://www.financial-planning.com/news/how-state-street-and-savvy-forged-new-paths-to-add-to-the-custody-competition - InvestmentNews: https://www.investmentnews.com/goria/technology/tax-aware-long-short-finds-new-channel-as-vise-adds-interactive-brokers/268987 - Citywire RIA: https://citywire.com/ria/news/4-2bn-ria-halbert-hargrove-leaves-schwab-advisor-network/a2503284 - Citywire RIA: https://citywire.com/ria/news/19-person-team-leaves-osaic-to-form-new-york-ria-with-rayjay/a2503286 - AdvisorHub: https://www.advisorhub.com/raymond-james-ceo-cites-fees-advisor-pay-as-options-if-cash-sweep-revenue-falls/ - Citywire RIA: https://citywire.com/ria/news/rayjay-investing-1-1bn-in-tech-and-ai-to-lure-advisors/a2503265 - Citywire RIA: https://citywire.com/ria/news/schwab-introduces-its-own-mcp-server-through-claude-plots-expansion-to-other-llms/a2503264 - RIABiz: https://riabiz.com/a/2026/11/12/rick-wursters-off-hand-offer-to-trade-sweep-cash-for-ria-custody-fee-at-impact-reveals-dilemma-over-hidden-costs-driving-legacy-custody-model-off-the-rails-and-into-the-lap-of-leaner-ai-driven-competitors - InvestmentNews: https://www.investmentnews.com/advisor-tech/savvy-raises-100m-and-launches-white-label-custody-platform/268936