Fidelity Investments is raising the minimum for RIAs on its custody platform to $100 million in client assets and applying it to firms already there, according to reports from WealthManagement.com and AdvisorHub. Firms below the line must find another custodian.
AdvisorHub reported that Fidelity told RIAs they must hold at least $100 million in client assets on its platform or move, with a deadline of June 30, 2027. The outlet also reported that the threshold is measured by assets held at Fidelity, not by a firm's total assets under management. A firm with $150 million overall but only part of it custodied at Fidelity could therefore fall short.
Research notes citing a Winthrop & Co. analysis say Fidelity announced the change on October 1, 2026. Financial Planning reported that this is the first time Fidelity is applying such a requirement retroactively to firms already with it. Yahoo Finance reported that Fidelity had already set the $100 million threshold for new advisors joining the platform. The earlier threshold, it said, was $15 million, set in 2008. Yahoo Finance also reported that in 2013 Fidelity mandated a $2,500 quarterly fee for firms with under $15 million in client assets on the platform.
AdvisorHub quoted Fidelity as saying it recently set the same minimum for RIAs joining its custody platform and is now extending that criteria to existing custody clients for consistency. WealthManagement.com reported that Fidelity's letter, posted on LinkedIn, said the company regularly evaluates its business model, brokerage platform and client relationships to ensure they align with its long-term strategy. A Fidelity spokesperson told AdvisorHub the company recognizes that change requires thoughtful planning and has committed to giving firms time to evaluate their options.
The number of affected firms is not firmly established. Winthrop & Co. said about 1,100 RIAs report less than $100 million on Form ADV. RIABiz estimated the deadline applies to hundreds or thousands of advisors, likely small, state-registered firms. AdvisorHub reported that Alex Chalekian, CEO of Lake Avenue Financial, whose firm manages around $155 million, posted the notification on LinkedIn.
Reaction from advisors has been sharp. Michael Kitces, quoted by Private Wealth Daily, called the decision outright bizarre and said Fidelity had given a hard no, adding that cutting off the next generation of advisors seemed a bizarre choice. Private Wealth Daily reported that Kitces and Chalekian both expect the small-firm exit to cost Fidelity later. RIABiz quoted Nexus Strategy founder Tim Welsh on the economics: a $60 million firm might have hundreds of accounts generating heavy operational work relative to its assets, while a $1 billion firm with fewer, larger households earns a custodian far more per unit of effort.
Where do displaced firms go? Yahoo Finance reported that Fidelity is the second-largest RIA custodian after Schwab, which has no publicly reported minimums for RIAs. FA Magazine quoted Kitces calling the change a win for Schwab and Altruist, which he said have been more welcoming to new and smaller firms. He speculated that TradePMR, LPL and Betterment could move in to fill the gap. WealthManagement.com reported that Altruist CEO Jason Wenk asserted his firm could serve advisors who need to leave Fidelity. Kitces.com has also listed Shareholders Service Group, which services the small RIA marketplace, and TradePMR as alternatives for smaller firms.
The move itself is the larger burden. A report republished by Newsbeep said nine months sounds generous until a firm accounts for new account paperwork for every household, re-establishing transfers and standing instructions, rebuilding technology integrations, and explaining to clients why their statements will change. It noted that all of this lands on small firms with the fewest people to absorb it.