Citi has moved to change how it operates its financial advisory services, scrapping commissions-based advice and instead moving to charge clients a set fee, media reports said.
Citi has moved to change how it operates its financial advisory services, scrapping commissions-based advice and instead moving to charge clients a set fee, media reports said.
The Wall Street banking and wealth management firm, which has moved to spin off its Smith Barney wealth brokerage operations in a joint venture with Morgan Stanley, will charge clients a fee of about 1 per cent of invested assets. Citi’s wealth management business manages about $30 billion on behalf of customers.
The move could be significant for wealth management more broadly in the US and elsewhere. In the UK, for example, financial advisors have been increasingly adopting a fee-based rather than commission-driven remuneration model in a bid to assure clients that advice is genuinely independent and not driven by “product push”.
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