Citigroup Introduces Fixed Advisory Fee Structure for New Investment Accounts 

Citigroup has adopted a new fixed-fee model of up to 2% for its investment advisory programs, shifting away from its previous tiered pricing structure, according to a July 21 filing with the Securities and Exchange Commission. The updated fee will apply to new accounts opened on or after that date, while existing clients will continue under the earlier tiered arrangement. 

The new structure is described as an annualized, fixed asset-based fee that consolidates charges previously itemized separately. This includes brokerage commissions, custodial costs, and advisor compensation — encompassing both Citigroup Global Markets Inc. and clearing firm Pershing. 

Although the fixed fee can reach up to 2%, it remains negotiable depending on various client-specific factors, such as account size, scope of services, and the potential for broader business relationships. 

Programs affected by the new pricing model include Manager Selection, Advisor, and Portfolio Manager offerings. The shift replaces a more complex structure from Citi’s March 27 Form ADV, in which fees varied significantly by program, asset levels, and strategy — with rates ranging from 0.2% to 2.2%. 

Citi’s move reflects a broader trend among wealth management firms toward streamlined pricing models, aimed at improving fee transparency and aligning costs more directly with service offerings — especially as clients increasingly demand clarity and consistency in advisory fees.