RQD gets a boost as Fidelity sets $100 million custodian minimum

RQD* Clearing secured its $74 million before Fidelity Investments moved. The New York clearing and custody firm raised a minority growth investment of that size in late August, led by Bain Capital Tech Opportunities with participation from existing investors ABN AMRO Clearing Bank and Nyca Partners. Then came last week's word from Fidelity, described by Financial Planning as the second-largest custodian to registered investment advisors, that it will no longer work with firms that do not place at least $100 million with it by July 2027. Financial Planning reports the announcement has given an extra boost to RQD and other custodians that remain open to RIAs of any size.

For practices below that line, the choice is to consolidate assets at Fidelity before mid-2027 or shop their book elsewhere, and the second option is where RQD's pitch lands. It is a small door. The firm counts roughly 50 clients among U.S. advisory practices, a base it reaches through RIAs, brokerages and turnkey asset management platforms, and it does not disclose its asset base or publish its pricing schedules — two more contrasts with larger rivals named in the article. The reported $4 billion that Vanguard will pay to acquire Altruist by the end of the year dwarfs the round. Financial Planning's series on custodian fees and business models places RQD nearer technology-focused, international-scale firms such as Interactive Brokers than the giant custodians. The piece is the tenth installment in that series.

Michael Lanyon, RQD's chief revenue officer, describes the firm's work with RIAs and other U.S. wealth management businesses as "still in what I would describe as our early infancy." He joined in December 2023 after leaving the global head of sales post at Apex Fintech Solutions' clearing business. On price, he said negotiations with prospective client advisory practices begin from a "low basis-points formula," and he declined to be more specific about a baseline fee level. The customers RQD wants, as the article describes them, are "modern groups that want to own the customer or advisor experience" — firms building their own products and services, staying accessible to smaller accounts, and offering capabilities such as direct indexing and long-short strategies that have traditionally been reserved for larger ones.

The stake for advisors watching the custodian market is straightforward: a $74 million raise and a base of about 50 practices do not add up to the scale of the firms now raising their minimums, and the round's effect on RQD's custody business cannot be measured from outside while its asset base stays undisclosed. The client count is the visible scoreboard, and the running of it starts well before Fidelity's July 2027 deadline.