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Fidelity brings its 401(k) muscle to RIAs with new product

The 401(k) giant seeks to do for RIAs what it's done for brokers all along

Author Elizabeth MacBride April 21, 2010 at 4:51 AM
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Bob Kleiber: Our fees are up front, on the statement every month. Brokers and insurance agents fees are hidden. Sometimes we have to explain that to clients, again.

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April 29, 2023 at 1:36 AM

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February 17, 2023 at 2:49 AM

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December 3, 2022 at 3:16 AM

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Bill Sands

Bill Sands

April 22, 2010 — 7:11 AM

Is anyone really believing you can get free admin? Maybe if the plan had one participant. But most companies that look at bundled products are larger companies w/ a lot of employees. If anyone is getting paid hidden fees, it would be Fidelity. They’re getting paid…one way or the other.

Alison Farrin

Alison Farrin

April 23, 2010 — 6:45 PM

It is getting easier to provide the basic service for close to free. But as always, the plan sponsor receives what it pays for. Generally these large “service” providers take whatever information they get from the employer, run the tests and report. So, the Plan Sponsor gets a test, a report and a 5500 – usually based on bad data in the initial submission. That works just fine until they are audited. Then all the issues become apparent and the Plan Sponsor looks for someone to blame, or closes the Plan citing administrative difficulties.

We joke about the retirement administration of one large payroll provider. They have a 100% failure record on correct ADP tests for plans where we have subsequently assumed administration.

They also provide “free” administration for their premier payroll clients. The clients that pay extra for the premier package….....

Phil Chiricotti

Phil Chiricotti

October 21, 2010 — 2:05 PM

When digesting this article, your readers might want to note that the DOL does NOT have a set of enforcement regulations for RIAs. DOL regulations deal with fiduciaries. Anybody can be a functional fiduciary. Furthermore, RIAs/IARs may not be ERISA fiduciaries when serving a retirement plan. It depends on the services that are performed. Fiduciary status under ERISA is not the same as fiduciary status via securities licensing.

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