ROCKLIN, Calif. — While more financial institutions are moving their investment service programs towards a "fee-based" model, credit unions have not fully moved in that direction just yet.

Pete Snyder, president of Snyder Consulting Solutions, LLC, an investment and insurance consulting firm for credit unions, said the risks are critical to know before implementation. Fee-based investment accounts generally offer a consolidated approach to managing investments. They tend to bundle a wide range of investments, services and advice into one account and transactions are generally made without a charge to the account. Instead, a fee, generally between 1% and 3%, is levied based on the size of the account.

"The fee-based market segment represents an opportunity for significant incremental growth to existing credit union investment services programs," Snyder said. "Given that, to ensure continued success and overall growth in this business channel, credit unions must get their arms around the overall dynamics of the fee-based model and the extent to which it supplements the in place program's overall staffing and financial models."