Bundled Fidelity 401(k) Headed for RIA Channel

Fidelity said the Fidelity Advisor 401(k) platform for RIAs bundles the various components of a 401(k) program, including recordkeeping, investments, participant education, and fiduciary support materials, in one product.

The company said it builds upon the existing Fidelity Advisor 401(k) platform, which is distributed through broker/dealers and administers 3,771 plans with recordkept assets of nearly $25 billion. The offering was developed jointly by Fidelity Investments Institutional Services Company and Fidelity Institutional Wealth Services, a provider of custody services to RIAs. 

“We’re making it easy for RIAs to focus on doing what they do best—advising their clients—while Fidelity manages the other aspects of the 401(k) equation,” said Richard H. Linton Jr., executive vice president, Fidelity Investments Institutional Services Company, in a news release. “This opens up a world of opportunity for RIAs looking to expand their practices by advising 401(k) plan sponsors.”

Fidelity said nearly 80% of 401(k) plans under $50 million are sold through an adviser—up from 52% in 2003.

According to Fidelity, the new offering features:

• flexible plan design features, including access to more than 1,100 Institutional Share Class investments class shares from 28 fund families;
• an employee education program, including access to Fidelity’s participant Web site;
• tools to help advisers measure and track how their clients’ 401(k) plans are performing;
• services for plan sponsors, including recordkeeping, administration, compliance, and reporting; and 
• services for advisers, including end-to-end sales process support and Fidelity retirement and practice management insights.

To help RIAs better determine which retirement plan(s) may be an option for their clients‘ businesses, Fidelity developed the Plan Selector Tool. Advisers answer a series of questions about their clients’ retirement plan goals and the tool suggests retirement savings plan options that advisers can then discuss with their client.