PHOENIX (AZFamily) — Some Fidelity customers say they’ve been locked out of their 401(k) retirement accounts after the company implemented a new policy restricting access for third-party financial advisors.
The change, which Fidelity says is meant to improve security, has left some clients frustrated and worried about who really controls their retirement savings.
The policy, introduced in September 2024, prevents customers from sharing their login credentials with outside financial advisors.
But many workers who don’t get to choose which company manages their employer-sponsored 401(k) plans, rely on independent advisors to help monitor and grow their retirement funds.
Now, some of those customers are discovering that their advisors’ access has been cut off. In certain cases, their accounts have been temporarily locked.
“It’s bothersome in that Fidelity is acting like they own my money,” said Steve Fraizer, a long-time Fidelity customer.
In a statement, the company said the restrictions target credential-sharing practices that can expose clients to cybersecurity risks.
But some financial advisors see it differently. They argue that the policy effectively limits customers’ ability to seek independent financial guidance, pushing them instead toward Fidelity’s own advisory services.
“The typical employee isn’t getting any help, any support, anything really on a plan, a 401(k) plan. It’s not good,” said financial advisor John Rathnam.
Fidelity issued this statement in response to complaints. They said in part:
“If a customer chooses to work with an advisor to manage their 401k, they can do so, as there are solutions and advisors available that leverage safe practices.Fidelity’s concerns are focused on how some advisors are gaining such access by using customer credentials. We work closely to support many RIAs who securely advise on employer-sponsored retirement accounts with plan sponsor oversight.”
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