Recordkeepers are facing increasing pressure to modernize while keeping costs low and maintaining the reliability advisers and clients expect. With consolidation ongoing, the expectations from plan advisers and retirement specialists have evolved significantly, sources say, demanding a heightened focus from providers on technology, service and regulatory compliance.  

Advisers Emily Wrightson, Sarah Parker and David Montgomery weigh in on what makes a recordkeeper stand out in today’s competitive market. 

Recordkeeper Consolidation Yields Challenges and Opportunities 

As recordkeepers continue to consolidate, absorbing clients from other firms, the transition has had its share of hurdles. Emily Wrightson, a principal in CAPTRUST, acknowledges the growing pains that come with these changes. 

“There’s certainly been challenges with the consolidation process,” Wrightson says. “With recordkeepers absorbing new business, there are occasional service disruptions or adjustments that need to be made. However, the top recordkeepers have been around for a long time and understand how to manage these transitions effectively.” 

Despite the short-term difficulties, Wrightson sees long-term benefits. “At the end of the day, consolidation should ultimately benefit recordkeeping as a whole. As a scale operation, the more efficient and modernized these firms become, the better the service they can provide.” 

However, she emphasizes that selecting the right recordkeeper for a plan goes beyond size and scale. Advisers need providers that prioritize ongoing technological advancements, robust data security measures and exceptional service standards. 

The Pillars of a Strong Recordkeeper 

Sarah Parker, director of retirement plan consulting at SageView Advisory Group, follows what she calls the “rule of three” when evaluating recordkeepers: service quality, technological innovation and regulatory compliance. 

“First and foremost, service is critical,” Parker says. “A strong relationship manager can make all the difference in ensuring participant engagement and plan success. We look for tenured relationship managers who understand the nuances of the industry and can work seamlessly with our clients.” 

Technology, including artificial intelligence, is the second key factor: “A strong digital platform is non-negotiable. Recordkeepers today are more than just administrators—they are technology firms at their core. We want to see continued reinvestment in technology, and we’re particularly interested in AI-driven solutions that enhance the participant experience.” 

Lastly, with regulatory changes such as the SECURE 2.0 Act of 2022 reshaping retirement options, compliance is a must. 

“With the number of regulatory updates in recent years, we need recordkeepers who are not only aware of the changes, but also proactive in implementing them,” Parker says. “A recordkeeper that is behind on compliance is not an option.” 

Advisers Seek Stronger Partnerships 

David Montgomery, the managing director of retirement plan services at Concurrent Investment Advisors LLC, says the relationship between advisers and recordkeepers is specific to each situation. 

“The role of the recordkeeper varies by adviser,” Montgomery explains. “Some advisers prefer to keep recordkeepers in the background, handling only the administrative side of things, while others want them front and center, actively participating in client meetings.” 

Regardless of the approach, one thing remains constant: reliability. 

“Advisers put their reputation on the line when they recommend a recordkeeper,” Montgomery says. “If a recordkeeper falls short, whether through service failures, slow response times or technical mishaps, it directly impacts the adviser’s relationship with their clients.” 

Efficiency is another crucial component. 

“Advisers don’t want recordkeepers to create more work for them,” Montgomery adds. “The best recordkeepers act as true partners, helping advisers streamline their operations, rather than adding to their workload.” 

This has led to a growing trend of advisers offloading more administrative tasks to recordkeepers. 

“More and more advisers are looking to pass off as much work as possible, handling participant inquiries, processing changes, and other day-to-day tasks, so they can focus on higher-level strategic planning,” Montgomery says. 

Ultimately, the role of a recordkeeper has expanded beyond its traditional administrative functions, according to all three experts. They agree that recordkeepers must be technology-driven, service-oriented and regulatory-savvy partners who can support both advisers and participants in achieving long-term financial security. 

“Recordkeepers need to be more than just recordkeepers,” Wrightson says. “They are integral players in the retirement planning ecosystem, and those that invest in technology, security and service will be the ones that stand out.” 

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