What should investment advisers do if they change their fee structure?

When investment advisers change their fee structure, it is essential for them to inform clients promptly about the change. Transparency is fundamental in the adviser-client relationship. Clients need to be aware of how changes in fees may affect their investments and overall financial planning. This disclosure helps maintain trust and ensures that clients can make informed decisions regarding their accounts.

Timely communication is also a regulatory requirement in many jurisdictions, as it aligns with the fiduciary duties investment advisers have towards their clients. Keeping clients informed and involved fosters a positive relationship and helps mitigate misunderstandings or dissatisfaction with the services provided.

While updating the website, contacting only high-value clients, or assuming no disclosure is necessary might seem like alternative approaches, they do not fulfill the need for broadly informing all clients. All clients should be notified directly to ensure that everyone affected is aware of the changes and can adjust their strategies accordingly.