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As a major investment company and financial technology (fintech) platform scrambles for access to clients’ retirement accounts, some clients caught in the middle are discovering that the “K” in 401(k) might just stand for “Keep Out.”
The retirement frenzy recently escalated when Fidelity began enforcing a new policy restricting access to third-party financial advisers, and clients learned they lost online access to their 401(k) accounts to seek outside help.
Among those blocked were users of Pontera, a popular investment management platform.
Pontera allows financial advisors to access a client’s 401(k) account, such as those held at Fidelity, through their platform while protecting the client’s personal login credentials. This way, advisors can securely manage the account, while the platform prevents them from gaining control over actions such as transferring a client’s funds without authorization.
In September 2024, Fidelity released a statement expressing concern about the dangers of “credential sharing … particularly when it allows third parties to take high-risk actions, such as executing trades on accounts” (1).
As a result, they warned that they would “prevent platforms that rely on credential sharing from accessing and taking action on customer accounts.” Now, clients who used third-party platforms like Pontera are locked out of their own Fidelity retirement accounts.
One example is Phoenix resident Kelly Havins, 63, who told The New York Times that she hired a Pontera financial advisor because when it comes to managing her 401(k), she doesn’t “have the time or the understanding” (2). He said that when Fidelity contacted him to warn him that he might be locked out of his account, he “thought it was a scam.” But it wasn’t, and after a few back-and-forths with Fidelity, he lost online access to his account. Havens said he had to work with his financial advisor to regain access.
For its part, a spokesperson for Fidelity told InvestmentNews that it is only blocking online access and that a direct call with a representative of the company will help customers to restore it (3).
However, financial advisor John Rathnam told the news publication Arizona’s Family that the idea that people “could cut themselves out of their biggest savings account — it’s kind of crazy. That’s mind-boggling to me. I have to think they could have done better than that” (4).
Despite Havins’ experience, financial fraud is indeed common and something Americans should be aware of when it comes to their retirement accounts.
In fact, according to Planadviser, “the unique business model of retirement plans creates multiple possible avenues 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 their website on October 10, Pontera framed the situation as a “battle” between one side that represents “consumer choice” and another that is “an entrenched institutional incumbent highly conflicted and motivated by their own economics” (6). They labeled Fidelity’s actions an “anticompetitive power grab,” accusing them of forcing clients to use their own in-house financial advisors. They also classified those same clients as “captives … without the ability to move their money elsewhere” because a 401(k) is tied to an employer, and the latter decides which investment company they use.
A Fidelity spokesperson told USA Today that it actually “works closely to support” independent registered investment advisors (RIAs) who “safely advise on employer-sponsored retirement accounts with plan sponsor oversight” (7).
Brenden Gebben, CEO of Absolute Capital, also spoke to USA Today and said his company has an agreement with Fidelity to provide advice on behalf of their clients, adding that “We are a regulated entity” and noted that Pontera is not regulated from a financial perspective.
Meanwhile, financial planner Ben Henry-Moreland said in an interview with InvestmentNews that Pontera and similar third-party platforms “use screen scraping technology that gives them access to much more information about clients than is necessary for the tool to perform its function” (8). He warned that such data could be sold without the client’s permission, but said that “it is frustrating that Fidelity, if the reporting is true, did not work with Pontera” to create a more secure connection between them.
To that end, Pontera told The New York Times that they have tried to work with Fidelity to customize secure access to clients’ investment accounts, but have not heard back.
The ongoing battle between Fidelity and Pontera raises the point that many Americans would prefer to choose their own financial advisor when it comes to managing their 401(k) accounts.
The advantages of a financial advisor are clear: personalized advice based solely on your own needs and desires, as well as a trusted professional to answer your questions, explain your investment options and warn you of risks you may not see coming.
That said, as Kiplinger notes, financial advisors also need to be paid and “typically charge an annual fee based on a percentage of the assets they manage,” often somewhere between 0.5% and 1.5% (9). However, the store adds that “the personalized advice and improved performance they can provide can outweigh the cost of their fees over time.”
It’s also a good idea to weigh your need for a counselor. Ask yourself, are your account management needs complicated enough to require outside help? If so, be sure to turn to a fiduciary investment advisor to take care of your financial needs. Trustees, by law, must act only in your best interests when managing your accounts.
If you find yourself in need of a financial advisor, it can be a challenge to find the right expert for your unique situation. You could rely on a word-of-mouth recommendation from a friend or colleague, or you could do your homework — all in one place.
Advisor.com can help you find a professional financial advisor who has experience in your problem area – and it only takes two minutes.
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Forbes notes that an advisor may take multiple separate accounts and use “a portfolio-based approach [that] focuses on achieving the target asset mix when all accounts are combined (10).” The publication adds that your 401(k) may also need to be rebalanced regularly to ensure it’s working toward your retirement goals.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial guidelines.
Fidelity Investments (1); The New York Times (2); InvestmentNews (3.8); The Arizona Family (4); Planadviser (5) Pontera (6); USA Today ([7(https://www.usatoday.com/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 construed as advice. It is provided without warranty of any kind.
