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

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 Eccleston Law

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.

 

Eccleston Law 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

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

1778171646 Law
May 7, 2026
FINRA Bars Former Raymond James Broker for Refusing Testimony in Unauthorized Trading Probe

A former registered representative with Raymond James has been barred from the securities industry after refusing to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation into alleged unauthorized trading activity.

1778084309 Law
May 6, 2026
FINRA Outlines Key Rulemaking Priorities and Recent Developments in Quarterly Agenda

The Financial Industry Regulatory Authority (FINRA) recently released its Quarterly Regulatory Policy Agenda, offering a detailed view of its rulemaking priorities, pending proposals, and recently approved regulatory changes.

1778000603 Law
May 5, 2026
Commonwealth Financial Network Resolves SEC Conflict of Interest Case

Commonwealth Financial Network has agreed to pay $5 million to resolve a long-standing conflict of interest case brought by the Securities and Exchange Commission, according to reporting by ThinkAdvisor.