Fidelity Launches Wealth Platform

Tom Burroughes

10 June 2019

US-based has launched a wealth management platform built out of its own programs and services and those of other prominent firms.

The organization is tapping into what it says is a rising demand for managed accounts: these channels are expected to hit $8.1 trillion by 2020 from $5.7 trillion in the second quarter of 2017. Demand comes from RIAs, family offices and other parties, Fidelity said.

The new service is called Fidelity Managed Account XchangeSM.

“There’s been a clear shift in demand toward both planning-led experiences and fee-based business models, and managed accounts can help advisors deliver on both,” Anthony Rochte, head of Fidelity institutional’s investments and technology group, said. “Fidelity is building on our significant experience and proven success in the managed accounts space with this new offering, which should make it easier for advisors to efficiently access and manage a range of investment solutions from both Fidelity and third-party providers.”

Fidelity said it expects FMAX to begin rolling out in 2020. The platform will offer end-to-end advisory capabilities and integrate with WealthscapeSM, eMoney Advisor, LLC and Envestnet, enabling advisors to plan, propose, invest and report in one streamlined workflow.

FMAX uses an open architecture business model, offering a mix of proprietary Fidelity managed account and model portfolio solutions, as well as solutions from third-party strategists and product providers. Existing Fidelity models and future offerings are expected to be accessible through FMAX.