Wells Fargo has changed the name of its financial planning-focused wrap-fee program and raised the net worth and income thresholds clients need to meet to participate, according to a brochure filed with federal regulators on Monday.
As part of the changes, Wells renamed its Fee-Based Planning Services program as Strategic Planning Services and doubled its minimum net worth requirement to $500,000, inclusive of real estate and assets held away. Clients can also qualify if they have at least $250,000 in annual income, according to the latest brochure.
Wells also revised its fee schedule, which could result in lower costs for some as the firm introduced a new tier for clients with a $2.5 million net worth. Those clients can be charged an engagement fee of as much as $25,000 for core services plus specialty planning, such as advice on divorce, sports and entertainment and business ownership, which requires working with an advisor with a specialty designation.
The program’s highest tier previously had a $1 million minimum for the $25,000 charge and also included a $12,500 engagement fee for clients with between $500,000 and $1 million. Those million-dollar accounts would now qualify for a lower $5,000 engagement fee under the new program, which still noted that clients may not be charged at all.
“We may elect to waive fees, in whole or in part, in our sole discretion, including but not limited to in connection with promotional efforts or participation in other advisory programs,” the brochure stated.
A Wells spokesperson said the changes were part of its regular review to see “where operational improvements can be made.” Planning is a “core part” of the firm’s advisory program and typically provided to those clients without additional charge, she noted.
“This update was part of a routine review and we adjust fee structures when appropriate,” the spokesperson wrote in an email.
Neither the spokesperson nor the brochure broke out the total assets in the Strategic Planning Services program. It’s one of several wrap-fee accounts offered, including unified managed accounts, mutual fund advisory programs, advisor-directed program and non-discretionary programs.
Just over half of Wells’ $2.2 trillion in client assets at its Wealth and Investment Management division are held in advisory programs. Wells, like many wealth management firms, has made financial planning a centerpiece of growth strategies in effort to expand client relationships and uncover assets held away.
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