Wells Fargo Doubles Minimum Requirement for Account Fee Waiver

Wells Fargo shows less love for smaller accounts, once again.

The wirehouse confirmed this week that it would double the asset threshold clients need to avoid annual account fees.

Starting in September, clients will need $500,000 in brokerage assets per household to be eligible for fee waivers.

Currently, the wirehouse waives the $300-per-year charge for clients with $250,000 or more.

The new fee structure will be assessed to clients based on account values as of June 30, 2020, according to a Wells Fargo spokeswoman.

“This will impact a small number of clients,” she writes.

The wirehouse has also taken steps to discourage its advisors from taking on smaller accounts.

In December, the wirehouse released a revised 2020 financial advisor compensation grid that cut payout rates for accounts with $250,000 or less to 20%. Previously, Wells Fargo imposed a 10% payout rate on all accounts under $100,000, but set no limits on accounts above that amount. The 10% limit on accounts under $100,000 remains in place.

That lower payout rate applies to the smaller accounts regardless of other factors, such as revenues generated by advisors or growth in their assets under management.