Institutional Wealth Management Services | Fidelity Institutional (2024)

FAQs

Are Fidelity reps fiduciaries? ›

When we act as an investment adviser, we are considered to have a fiduciary relationship with you and are held to legal standards under applicable federal and state securities laws.

National Financial Services LLC is also a registered broker-dealer, as well as a clearing firm.

Investments that you entrust to our firm are placed in custody with Fidelity's clearing firm, National Financial Services LLC (“NFS”) — a Fidelity Investments broker-dealer and one of the largest clearing providers in the industry.

Primary Areas of Focus in Institutional Wealth Management

Asset allocation & portfolio management: This involves carefully maintaining the right balance between various asset classes, such as exchange-traded funds, mutual funds, real estate, and other securities, to meet investment objectives.

Fiduciaries are obligated to act in your best interest, whereas the title “financial advisor” implies no legal obligation. When looking for a financial advisor to help you develop your custom financial plan, you should ensure that your financial advisor is a fiduciary.

Working with a corporate trustee like Charles Schwab Trust Company can give you: Objectivity. As a fiduciary, we will administer your trust in a professional and impartial manner.

With National Financial Services LLC (NFS), a Fidelity Investments company, you can feel confident that much of the critical trade processing, clearance, client reporting, and systems work that backs your investment professional is performed by an industry leader.

The Boston-based Johnson family owns 49% of mutual fund company Fidelity. The other 51% is owned by employees. Abigail Johnson is the third generation of the family to run the company. She took over from her father Edward "Ned" Johnson III in 2014.

National Financial Services LLC (NFS)

Our clearing firm, National Financial Services LLC, a Fidelity Investment Company, is a nationally recognized clearing firm, servicing more than 200 independent broker/dealers, banks, and insurance company correspondents. It is a wholly owned subsidiary of Fidelity Investments.

Where does Fidelity rank? ›

StockBrokers.com⁴ also rated Fidelity #1 Overall Broker in 2022, 2023, and 2024. In 2023, both Barron's⁵ and Kiplinger's⁶ awarded Fidelity Best Online Broker.

The Fidelity^® Debit Card is issued by PNC Bank, N.A., and the debit card program is administered by BNY Mellon Investment Servicing Trust Company.

Clearing & Custody Solutions

Technology, brokerage services, trading capabilities, and collaborations that help banks, broker-dealers, Registered Investment Advisors, family offices, and wealthy families achieve their goals.

Institutional investors operate with large amounts of capital, allowing them to make significant investments and employ sophisticated strategies. Retail investors typically have smaller investment amounts, relying on personal research and financial advice.

Investment adviser representatives, who are regulated by the Securities and Exchange Commission, (SEC) have always been held to the fiduciary standard.

Fiduciary duty means that the financial advisor is acting in the best interest of the beneficiary: making sound investments that maximize the beneficiary's returns instead of the financial planner's profits.

Legally, a fiduciary cannot act out of self-interest. If their advice carries any potential conflicts of interest, they'll raise the issue with you as their client. In contrast, brokers act out of inherent self-interest.