According to the presentation viewed by AdvisorHub, commencing on July 1, Wells will levy an "advisory platform adjustment" of four basis points annually on all advisory account assets, with a cap set at $12,500 per year per advisor. This fee adjustment will be applicable across all of Wells Fargo's channels, including its private client group, bank-based advisors, and independent Financial Network advisors.

For instance, an advisor managing $100 million in advisory assets could face monthly charges of $1,041.67 until reaching the cap. While the fee does not directly affect client charges, it could yield substantial revenue for Wells Fargo when extrapolated across its $939 billion in advisory assets.

The rationale behind the new fee is to offset potential revenue loss resulting from changes in how Wells charges on third-party and in-house managed account programs. Previously, Wells imposed a flat "manager fee" on separately managed accounts and unified managed account strategies. With the upcoming change, Wells now will charge advisors only the third-party management fee and pass the difference on to advisors, making SMA and UMS programs more appealing.

AdvisorHub reports that under the revised structure, Wells will credit advisors for a larger portion of the account fee, as the management fee on in-house managed account programs is eliminated.

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