Schwab Plans to Charge for Shelf Space Next Year. It Could Hit Small Issuers Hardest

Core Insights - The financial services industry is witnessing a shift as Charles Schwab plans to reintroduce platform fees next year, following similar moves by Fidelity and other major broker-dealers [2][4] - This change is expected to pressure smaller and newer asset managers to innovate and differentiate their products to stand out in a competitive market [3][5] Group 1: Company Actions - Charles Schwab previously eliminated platform fees five years ago but is now reconsidering them due to the evolving ETF landscape and the potential revenue opportunities [2][3] - The anticipated fees may include a charge of 15% of what ETF issuers earn or a $100 transaction fee for investors, similar to Fidelity's model [4] Group 2: Industry Trends - The trend of declining fund fees may be disrupted as asset managers will need to allocate funds for distribution costs, potentially slowing the overall decrease in fees across the industry [5] - There are currently fewer than 30 ETFs available through Fidelity that do not incur a service fee, indicating a growing trend towards platform charges that may disproportionately impact smaller firms [6]