Schwab is changing pricing on its transaction fee fund platform from a flat fee to an asset-based, Investment News reports. The company will start charging funds 10 basis points based on the amount of assets on the platform, instead of the $20 per account that they charge now. As per the new fee structure, in case a fund company had $1 million in assets on the platform and 1,000 accounts and paid about $20,000 annually to Schwab, it will now pay about $100,000. The new pricing structure, which will mainly hit Fidelity and JP Morgan Asset Management, will help with serving shareholders and other transfer agency functions, such as record keeping, tax reporting and statements.
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