PHOENIX (AZFamily) \u2014 Some Fidelity customers say they\u2019ve been locked out of their 401(k) retirement accounts after the company implemented a new policy restricting access for third-party financial advisors. <\/p>\n
The change, which Fidelity says is meant to improve security, has left some clients frustrated and worried about who really controls their retirement savings.<\/p>\n
The policy, introduced in September 2024, prevents customers from sharing their login credentials with outside financial advisors. <\/p>\n
But many workers who don\u2019t get to choose which company manages their employer-sponsored 401(k) plans, rely on independent advisors to help monitor and grow their retirement funds.<\/p>\n
Now, some of those customers are discovering that their advisors\u2019 access has been cut off. In certain cases, their accounts have been temporarily locked.<\/p>\n
\u201cIt\u2019s bothersome in that Fidelity is acting like they own my money,\u201d said Steve Fraizer, a long-time Fidelity customer. <\/p>\n
In a statement, the company said the restrictions target credential-sharing practices that can expose clients to cybersecurity risks.<\/p>\n
But some financial advisors see it differently. They argue that the policy effectively limits customers\u2019 ability to seek independent financial guidance, pushing them instead toward Fidelity\u2019s own advisory services.<\/p>\n
\u201cThe typical employee isn\u2019t getting any help, any support, anything really on a plan, a 401(k) plan. It\u2019s not good,\u201d said financial advisor John Rathnam. <\/p>\n
Fidelity issued this statement in response to complaints. They said in part:<\/p>\n
\u201cIf 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\u2019s 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.”<\/p>\n
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