Phoenix (AZ Family)

Some customers of Fidelity are reporting being locked out of their 401(k) retirement accounts after the company implemented new policies that limit access to third-party financial advisors.

While Fidelity asserts that these changes are meant to enhance security, there’s noticeable dissatisfaction among some users, who are concerned about the control over their retirement savings.

The new policy, which took effect in September 2024, prevents customers from sharing their login information with external advisors.

For many employees, especially those without the option to choose a different manager for their employer-sponsored 401(k) plans, independent financial advisors play a crucial role in effectively managing their retirement benefits.

However, a number of those customers are now finding their access to advisors has been restricted. In some instances, accounts might even be temporarily locked.

“It’s frustrating that Fidelity seems to think they have ownership over my money,” expressed long-time customer Steve Fraser.

The company stated that these restrictions are designed to prevent credential-sharing practices that could lead to cybersecurity threats.

In contrast, some financial advisors have a different perspective. They claim that the policy hinders clients’ ability to get independent financial advice and instead nudges them toward using Fidelity’s own services.

“Typical employees aren’t receiving any assistance, no support, and no realistic plans for their 401(k), which is concerning,” noted financial advisor John Rathnam.

Fidelity responded to the complaints, stating in part:

“IFA customers can work with an advisor to manage their 401(k) because there are solutions and advisors that use safe practices. Our concerns are centered on how some advisors are accessing clients’ credentials.” They added that they collaborate closely with many Registered Investment Advisors to ensure safe advising on employer-sponsored retirement accounts under plan sponsors’ oversight.