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As a major investment firm and a financial technology (fintech) platform compete for access to customers’ retirement accounts, some customers caught in the middle are discovering that the “K” in a 401(k) may just stand for “Keep out.”
The retirement craze escalated recently when Fidelity began enforcing a new policy limiting access to third-party financial advisors, and customers learned they couldn’t access their 401(k) accounts online for outside help.
Those excluded include users of popular investment management platform Pontera.
Pontera allows financial advisors to access clients’ 401(k) accounts, such as those held by Fidelity, through its platform while protecting clients’ personal login credentials. This allows advisors to securely manage accounts while being restricted by the platform from controlling actions such as unauthorized transfers of client funds.
Back in September 2024, Fidelity issued a statement expressing concerns about the dangers of “credential sharing…especially when it enables third parties to take high-risk actions, such as executing transactions within an account” (1).
As a result, they warned that they would “block platforms that rely on credential sharing from accessing customer accounts and taking action.” Right now, customers using third-party platforms like Pontera can’t access their Fidelity retirement accounts.
One example is Phoenix resident Kelly Havins, 63, who told the New York Times that he hired a Pontera financial advisor because he “didn’t have the time or knowledge” to manage his 401(k) plan (2). He said he “thought it was a scam” when Fidelity contacted him and warned him he could be locked out of his account. But that was not the case, and after repeated communications with Fidelity, he lost online access to his account. Havens said he had to work with a financial advisor to regain access.
For its part, a Fidelity spokesperson told InvestmentNews that they are only blocking online access and calling company representatives directly will help customers restore access (3).
Still, financial advisor John Rathnam told news outlet Arizona’s Family that people “could be cut off from their largest savings accounts — that’s kind of crazy. It boggles my mind. I have to believe they can handle it better” (4).
Despite Havens’ extensive experience, financial fraud is indeed common and Americans should be wary when it comes to their retirement accounts.
In fact, according to Planadviser, “retirement plans’ unique business models create multiple potential opportunities for breaches…Participant contributions and data often pass through multiple organizations before reaching the financial institution that serves as the plan’s custodian” (5).
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In an open letter posted on his website on October 10, Pontera described the situation as a “battle” between one side representing “consumer choice” and the other “entrenched incumbent institutions, highly conflicted and driven by their own economies” (6). They called Fidelity’s actions an “anticompetitive power grab” and accused them of forcing customers to use their own in-house financial advisors. Additionally, they classify these clients as “captives…who lack the ability to move their funds elsewhere” because the 401(k) is tied to their employer, which determines which investment firm they use.
A Fidelity spokesperson told USA Today that they actually “work closely to support” independent registered investment advisors (RIAs) who “provide reliable advice to employer-sponsored retirement accounts under the supervision of plan sponsors” (7).
Absolute Capital CEO Brenden Gebben also told USA TODAY that his firm has an agreement with Fidelity to provide advice on behalf of its clients, adding that “we are a regulated entity,” noting that Pontera is not regulated from a financial perspective.
Meanwhile, financial planner Ben Henry-Moreland told InvestmentNews that Pontera and similar third-party platforms “use ‘screen scraping’ technology that gives them access to more client information than the tool needs to perform its function” (8). He warned that such data could be sold without customers’ permission, but said it was frustrating that “if reports are true, Fidelity is not working with Pontera” to create a more secure connection between the two.
To that end, Pontera told the New York Times that they tried to work with Fidelity to customize secure access to clients’ investment accounts but did not receive a response.
The ongoing battle between Fidelity and Pontera does suggest that many Americans prefer to choose their own financial advisor when it comes to handling their 401(k) accounts.
The advantages of a financial advisor are clear: personalized advice based solely on your own needs and desires, with a trusted professional answering questions, explaining your investment options and warning you of risks you may not see.
That said, as Kiplinger points out, financial advisors must also be compensated, and they “usually charge an annual fee based on a percentage of the assets they manage,” usually between 0.5% and 1.5% (9). Still, the outlet added, “over time, the personalized advice and improved performance they can provide may outweigh the cost of their fees.”
It’s also a good idea to weigh your needs for an advisor. Ask yourself, are your account management needs complex enough that you need outside help? If so, be sure to hire a fiduciary investment advisor to meet your financial needs. By law, a trustee must act solely in your own best interests when managing your account.
If you find you do need a financial advisor, finding the right expert for your unique situation can be difficult. You can rely on word-of-mouth recommendations from friends or colleagues, or you can do the homework yourself—all in one place.
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Forbes notes that advisors can have multiple separate accounts and take a “portfolio-based approach.” [that] The focus is on achieving the target asset mix after all accounts are combined (10). The publication adds that your 401(k) may also need to be rebalanced periodically to ensure it’s helping to achieve your retirement goals.
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Fidelity Investments (1); New York Times (2); Investment News (3,8); Arizona Homes (4); Planadviser (5) Puntera (6); USA Today ([7(https://wwwusatodaycom/story/money/personalfinance/2025/10/22/fidelity-pontera-fintech-401k-retirement/86695501007/));Kiplinger(9);Forbes(10)[7(https://wwwusatodaycom/story/money/personalfinance/2025/10/22/fidelity-pontera-fintech-401k-retirement/86695501007/));Kiplinger(9);Forbes(10)[7(https://wwwusatodaycom/story/money/personalfinance/2025/10/22/fidelity-pontera-fintech-401k-retirement/86695501007/)）；吉普林格(9)；福布斯(10)[7(https://wwwusatodaycom/story/money/personalfinance/2025/10/22/fidelity-pontera-fintech-401k-retirement/86695501007/));Kiplinger(9);Forbes(10)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
