Fidelity just released its position on research costs under MiFID2, and they joined the camp of CSA/RPA lovers. More interestingly, they disclosed their new philosophy regarding costs charged to their clients, introducing a fix + variable part depending on performance. It is a major shift in the structure of fees that they intend to charge to clients. Fidelity is claiming that this new structure combined with MiFID 2 requirement will provide clients with an increased transparency regarding fees charged to them. Very interesting to see that Fidelity with this new approach clearly adopt a disruptive fees structure considering that active management of assets deserve in good years additional fees, but can no longer in bad years justify heavy fees. It is a way for Fidelity to put pressure on its peers regarding fees charged to clients but also to research providers as it could be understood that with lower base fees paid by clients the pressure on research pricing will be as high as if it was directly paid by the P&L of Fidelity.