Fidelity Investments plans to change where independent financial advisors can store clients’ uninvested cash—a move that may hurt returns for investors.
Beginning 2025, Fidelity intends to move client cash held in non-retirement brokerage accounts overseen by independent financial advisors to FCash, the company’s inhouse sweep account. FCash’s interest rate is 2.32% as of Nov. 11. That’s less than half of some money-market funds. Those high-yielding funds were often the go-to settlement option for registered investment advisors…
