Pontera, a technology provider for advisors managing held-away assets, challenges Fidelity for blocking its services to 24 million retirement savers. CEO Zurel criticizes Fidelity for not allowing third-party advisors to manage clients’ 401(k) assets. Fidelity defends its stance on security concerns with advisors gaining unauthorized access.

Zurel argues Fidelity’s block of credential sharing limits retirement savers’ access to holistic financial planning. Fidelity counters by stating safe advisor solutions are available with plan sponsor oversight. Fidelity aims to prevent third-party fintech firms from accessing customer accounts due to security risks.

Fidelity has been blocking credential sharing systems to protect client information since September 2024. Zurel accuses Fidelity of an anticompetitive power grab. The largest 401(k) providers communicate with millions of savers in the $13 trillion defined contribution retirement market.

Pontera connects advisors with participant assets, securing partnerships with RIAs and wealth managers. Zurel emphasizes Pontera’s security certifications and partnerships. Pontera seeks collaboration with Fidelity but turns to partnerships with other investment service providers.

Zurel positions Pontera’s business model as a battle for the right to manage workplace savings accounts. Pontera announces partnerships with Manulife John Hancock Retirement, Morningstar, BNY’s Pershing, and Orion. Zurel advocates for consumer choice in managing retirement savings accounts against institutional incumbents.

Read more at Yahoo Finance: Pontera CEO Lashes Out at Fidelity for Blocking Its 401(k) RIA Services