As fee transparency becomes a defining expectation in the wealth management industry, Turnkey Asset Management Programs (TAMPs) are increasingly refining their pricing structures to meet client and regulatory demands. Clients today want clear, itemized pricing for the services they receive, especially when it comes to managed accounts like ETF wrap accounts, Separately Managed Accounts (SMAs), and Unified Managed Accounts (UMAs). This push toward transparency benefits from platforms like Milemarker, which enables advisory firms to communicate fee structures more openly and creatively. By consolidating data from various sources, Milemarker grants advisors the freedom to present fees in a clear, detailed format, helping clients and advisors alike understand and trust the value they receive.

The Industry-Wide Demand for Fee Transparency

Transparency has become a critical focus in the wealth management industry, driven by client demand and regulatory pressures. McKinsey & Company reports that clients are increasingly unwilling to accept complex, opaque fee structures, preferring clear disclosures that show exactly what they’re paying for (“The Future of Wealth Management”). Meanwhile, regulatory bodies like the SEC and FINRA have introduced stricter fee disclosure requirements, particularly for advisors offering multi-layered fee structures. Cerulli Associates highlights that TAMPs catering to RIAs and broker-dealers are especially impacted, as both clients and advisors seek more straightforward, transparent cost breakdowns (“U.S. Managed Accounts Report”).

Milemarker addresses this need by empowering firms to communicate fee transparency through data-driven insights. By centralizing and verifying information from a range of systems, Milemarker enables advisors to break down fees at every level—advisor, client, and household—giving firms the flexibility to share accurate, real-time cost details without traditional data constraints.

Typical TAMP Fee Structures Explained

For advisors using TAMPs, fees vary by account type, with distinct costs associated with ETF wrap accounts, Separately Managed Accounts (SMAs), and Unified Managed Accounts (UMAs). Each type of managed account offers unique value, and it’s essential for advisors to communicate these differences effectively.

1. ETF Wrap Accounts

ETF wrap accounts combine exchange-traded funds (ETFs) within a managed portfolio. Typically, these accounts charge an all-in fee that covers management, advisory, and operational expenses. RIA Intel reports that ETF wrap accounts generally cost between 0.5% and 1.0% annually, depending on customization and service levels (“ETF Wrap Account Fees in Wealth Management”).

Milemarker enables advisors to break down each component of these fees for greater clarity, providing transparency around management, platform, and fund expenses. By using Milemarker’s data platform, advisors can showcase the exact services clients are paying for, offering a straightforward view that resonates with fee-conscious clients.

2. Separately Managed Accounts (SMAs)

Separately Managed Accounts (SMAs) are personalized portfolios tailored to individual clients. Due to their customization, SMAs generally charge higher fees, ranging from 1% to 2% annually, with additional fees for transactions or performance, according to InvestmentNews (“SMA Fee Structure and Transparency”).

With Milemarker’s capabilities, firms can itemize these fees and present them in a format that’s easy for clients to understand. Milemarker’s platform allows firms to illustrate how the premium services in SMAs—such as customized asset selection—justify higher fees, fostering client understanding and appreciation for the value of personalized management.

3. Unified Managed Accounts (UMAs)

Unified Managed Accounts (UMAs) integrate multiple investment vehicles—like ETFs, mutual funds, and individual securities—into a single portfolio, making fee structures more complex. UMAs usually charge between 1.0% and 1.5% annually, with variations depending on the level of customization required, according to Cerulli Associates (“U.S. Managed Accounts Report”).

Milemarker enhances fee transparency for UMAs by consolidating data from each component of the UMA, such as fund fees, manager fees, and custodial costs. Advisors using Milemarker can create a unified, client-friendly view of UMA fees, helping clients understand both the value of consolidated management and the costs associated with this complexity. This detailed breakdown promotes trust by making it clear where fees come from and what clients are gaining from each layer of the service.

Milemarker’s Role in Enhancing Transparency and Communication Freedom

Technology plays an essential role in improving fee transparency across wealth management. According to McKinsey, wealth management firms using advanced platforms for clear, accessible fee disclosure see higher client satisfaction as clients increasingly value the ability to understand their financial service costs (“The Future of Wealth Management”). Milemarker provides firms with a powerful advantage by enabling data-driven, unrestricted communication around fee structures.

With Milemarker, firms have the freedom to leverage data to inform and educate clients on fee transparency at multiple levels. By bringing together data from various systems, Milemarker eliminates traditional constraints in presenting fees. Advisors can access real-time data and adjust transparency efforts as needed, providing clients with ongoing clarity around costs while maintaining the accuracy of detailed, verified fee information. This capability not only enhances the client experience but also allows firms to meet and exceed regulatory compliance standards effortlessly.

Benefits of Enhanced Fee Transparency for Advisors and Clients

The shift toward transparent fee structures is beneficial for both advisors and clients. Advisors who disclose fees clearly are better positioned to earn client trust, strengthening relationships and creating opportunities for client retention and growth. The Wealth Advisor notes that firms that embrace fee transparency are more successful in retaining clients, as clients are more comfortable with advisors who are transparent and accountable about costs (“America’s Best TAMPs 2024”).

Clients benefit from understanding the exact breakdown of costs, increasing their satisfaction with advisory services and allowing them to see the value in each service component. Transparent fee structures make it easier for clients to evaluate premium services like SMAs and UMAs, understanding how these options align with their financial goals.

Regulatory Compliance and Fee Disclosure

Regulatory bodies such as the SEC and FINRA have reinforced the push for transparency by mandating detailed fee disclosures, especially for more complex accounts like SMAs and UMAs. Recent SEC amendments to the Investment Advisers Act require advisors to provide specific fee breakdowns to clients, helping clients avoid unexpected costs. FINRA has similarly emphasized the importance of fee clarity for broker-dealers to prevent conflicts of interest and uphold client trust (“SEC on Managed Account Fee Disclosure”).

Milemarker’s data platform supports advisors in meeting these requirements by providing accessible, accurate fee breakdowns. The platform’s data consolidation capabilities ensure that advisors remain compliant with regulatory standards while enhancing the client experience with transparent, up-to-date information. Milemarker allows firms to go beyond basic compliance, using data-driven insights to deliver exceptional client service through clear, consistent communication about costs.

Conclusion: Why Fee Transparency Matters in TAMPs, and How Milemarker Leads the Way

As the wealth management industry continues to prioritize fee transparency, TAMPs have responded by clarifying their pricing structures for managed accounts, including ETF wrap accounts, SMAs, and UMAs. This movement benefits clients by providing a clearer understanding of the value of each advisory service, and it benefits advisors by fostering stronger client relationships grounded in trust and openness.

Milemarker’s technology plays a crucial role in supporting this shift. By giving advisors the ability to consolidate, verify, and communicate fee data without traditional limitations, Milemarker enhances transparency at every level, from advisor to client to household. With Milemarker, advisors can provide real-time, data-rich fee breakdowns that align with both regulatory standards and client expectations, allowing clients to evaluate and appreciate the full value of their investments.

Through platforms like Milemarker, TAMPs and wealth managers are better equipped to communicate clearly about fees, enabling clients to make informed, confident decisions about their financial future. As fee transparency becomes a core expectation in wealth management, TAMPs that embrace Milemarker’s data-driven, flexible approach to communication will be positioned to lead the industry in trust, clarity, and client satisfaction.

Works Cited

• Bain & Company. “Wealth Management in an Era of Wealth Transfer.” Bain & Company, 2022, www.bain.com/insights/wealth-management-in-an-era-of-wealth-transfer.

• Cerulli Associates. “U.S. Managed Accounts Report.” Cerulli Associates, 2023, www.cerulli.com/reports/us-managed-accounts-report.

• InvestmentNews. “SMA Fee Structure and Transparency.” InvestmentNews, 2023, www.investmentnews.com/sma-fee-structure-and-transparency.

• McKinsey & Company. “The Future of Wealth Management: Building a Better Client Experience.” McKinsey & Company, 2023, www.mckinsey.com/industries/financial-services/our-insights/the-future-of-wealth-management-building-a-better-client-experience.

• RIA Intel. “ETF Wrap Account Fees in Wealth Management.” RIA Intel, 2024, www.riaintel.com/etf-wrap-account-fees-in-wealth-management.

• The Wealth Advisor. “America’s Best TAMPs 2024.” The Wealth Advisor, 2024, www.thewealthadvisor.com/americas-best-tamps-2024.

• U.S. Securities and Exchange Commission (SEC). “SEC on Managed Account Fee Disclosure.” SEC, 2024, www.sec.gov/rules/final/2024/managed-account-fee-disclosure.