Fidelity Investments has added new features to its
Advisor 401(k) platform-an effort, it says, to allow advisors to
compete more effectively.
The additions to the platform include a Web-based
sales automation program, an online retirement planning tool and a
program to facilitate fee-based services, according to the company.
The platform, which was launched in 1998, includes more than 2,100
plans, 352,000 participants and $12.6 billion in total record kept
assets.
Studies show that more than 26,000 small- to
mid-sized businesses, representing $52 billion in assets, search for a
new 401(k) provider annually, according to Fidelity.
"The 401(k) market is a prime opportunity for
advisors," says David Liebrock, executive vice president of Fidelity
Investments' Advisor 401(k) platform. "The percentage of small and
mid-sized 401(k) plans switching providers is between 5% and 9% a year,
and rising. Many small-business owners don't have the resources to
independently address all the administrative and fiduciary issues
associated with their 401(k) plans, and are looking for an advisor to
help them."