At a glance
- Advisers can end up charging for services the sponsor no longer needs from that adviser if the recordkeeper is already answering participant questions.
- Recordkeepers expanding into guidance also likely compete for the participant relationship even when a sponsor has hired an adviser, the consultant said.
- Plan sponsors are left unsure which provider to call when a participant needs advice and which invoice covers it.
Recordkeepers are taking on work that used to belong to plan advisers, leaving employers without a clear owner of the participant handoff, a Fidelity retirement consultant told a PLANADVISER 360 panel in Orlando.
Advisers can end up charging for services the sponsor no longer needs from that adviser if the recordkeeper is already answering participant questions. The overlap sits in the contract and fee boundary between a plan's recordkeeper and its advice provider.
Recordkeepers expanding into guidance also likely compete for the participant relationship even when a sponsor has hired an adviser, the consultant said. The consultant described recordkeepers broadly, not Fidelity as a firm.
Plan sponsors are left unsure which provider to call when a participant needs advice and which invoice covers it.
Reported by The Wrap desk from PLANADVISER 360. Published . Corrections