Since its 2013 acquisition of FundQuest, ESI’s advisory platform, Illuminations, has been powered by Envestnet behind the scenes. Envestnet has not only provided world class asset management, but also a technology platform that has served your practice, and your clients, well. Together, we have grown ESI’s advisory business to record levels.
Nevertheless, today’s competitive marketplace demands not only that we offer our advisors world-class sales support and technology, but also that we offer our advisors, and our clients, competitive pricing. After evaluating several options, ESI has decided to offer you the same technology you use today, but with considerably improved pricing and sales support, through Fidelity’s Managed Account Exchange (FMAX). ESI intends on transitioning to FMAX, which will help you grow your business, in January of 2026.
As explained below, this will be a “transition” and not a conversion. And this will have as minimal of an impact on advisors and clients as possible.
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The Envestnet platform that you know and use today is the same engine backing the FMAX platform. After the transition, Illuminations will have the same look and feel that it has today.
Plus, you’ll experience the following benefits:
- Increase Your Payout with Lower Platform Fees. Platform fees for new accounts added to the platform, as well as most accounts that have been added within the last five years, will be significantly reduced. Lower platform fees will increase your payout without decreasing the advisory fee your clients pay, unless you choose to reduce their fee if appropriate.
- Attract More Clients with Competitive Pricing. With lowered platform fees, you’ll be positioned to compete for more clients that are fee sensitive, increasing your book of business.
- Get More Support. FMAX will unlock access to additional capabilities, such as field resources, Model Design and Consultation Review and Streamlined Programs for easier Advisory Adoption, that Fidelity brings to the table. Enhanced sales support includes access to Paul Ma and his Portfolio Solutions team. Paul is a popular main stage presenter at ESI’s Elite Symposium and Business Development Conferences.
We have had extensive discussions with EFAC (ESI Field Advisory Committee) about Illuminations accounts added to the platform before 2021. In addition to a platform fee, some of these accounts currently require the payment of ticket charges (either by the client or the advisor) for many investments. After the transition, neither the IAR or Client will be charged separate transaction fees going forward, and the platform fees will remain the same or be lowered. ESI would like to thank EFAC for its involvement in these discussions.
Lastly, most clients will not need to sign any new paperwork to transition. They will receive this negative consent letter in the mail, and the transition will occur so long as they do not object in writing. However, less than 10% of accounts with older advisory agreements that pre-date 2011, will receive this affirmative consent letter and be asked to sign paperwork to consent to the transition. If you have one of these clients, we will let you know so you can make sure that this important document gains their attention.
We know any change can be challenging but we truly believe this “transition” will empower your growth and competitiveness with within the industry.
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