Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

Fidelity to Shift Independent Advisor Cash to Lower-Yielding FCash Amount in 2025

Posted on January 24th, 2025 at 2:00 PM
Fidelity to Shift Independent Advisor Cash to Lower-Yielding FCash Amount in 2025

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

Fidelity Investments plans to redirect cash balances in non-retirement brokerage accounts managed by independent financial advisors to its in-house sweep account, FCash, starting in 2025. Barron's reports that the change affects cash held in existing accounts, which previously was exempt from similar changes announced last year. FCash currently offers a 2.32 percent interest rate—less than half the yield of many money-market funds, a popular settlement option among advisors.

Fidelity confirmed the move to Barron’s, citing a goal of providing consistency to customers. The firm emphasized that FCash is intended for holding uninvested client balances awaiting reinvestment. Advisors still can manage client funds actively by selecting other investment options, such as money-market funds, to align with long-term financial goals. Fidelity also provides features like automatic fund transfers from money-market accounts to meet trade settlement obligations when FCash balances fall short.

The changes apply only to non-retirement accounts managed by independent advisors, leaving retirement accounts and retail investors unaffected. Nonetheless, the decision carries significant weight as Fidelity is one of the largest custodians of registered investment advisor (RIA) assets, second only to Charles Schwab.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Hiring ÍøÆØ³Ô¹Ï has been one of the best career decisions I have made and this "investment" to maintain my sterling regulatory record has been returned many times over.  If you are in a situation where you've been unfairly accused, don't hesitate to talk with ÍøÆØ³Ô¹Ï. They are the best.

Thomas C.

LATEST NEWS AND ARTICLES

1783615970 Law
July 9, 2026
FINRA Suspends Former Branch Manager for Supervisory Failures Linked to Excessive Trading and Churning

A former regional branch manager at a broker-dealer has agreed to Financial Industry Regulatory Authority (FINRA) sanctions after the regulator found that he failed to supervise registered representatives who engaged in excessive trading and churning of customer accounts.

1783525964 Law
July 8, 2026
SEC Sanctions David Lerner Associates for Regulation Best Interest Violations

David Lerner Associates has agreed to settle Securities and Exchange (SEC) charges alleging violations of Regulation Best Interest (Reg BI) that resulted in unnecessary costs to retail investors, according to InvestmentNews.

1783434190 Law
July 7, 2026
Private Credit Funds Face Mounting Redemption Pressure as Investor Sentiment Shifts

A surge in investor redemption requests has intensified pressure on private credit funds, raising concerns about liquidity and long-term stability across the asset class, as reported by The Wall Street Journal.