Fidelity Institutional is expanding a program to allow managed accounts within employer-sponsored retirement plans in response to the pending Department of Labor fiduciary rule, Fidelity announced Thursday.
The move is prompted by the increasing demand the pending rule is creating among plan sponsors, plan participants, and the advisors who work with them for fiduciary accountability, Fidelity says.
The Portfolio Advisory Service at Work, Fidelity’s managed account offering that provides investment management of workplace retirement accounts, will be offered to retirement advisors and recordkeepers.
The program is designed to allow plan sponsors and advisors to manage growth in an efficient and scalable way, while providing personalized solutions and better outcomes for plan participants, Fidelity says.
“Our goal with expanding access to the program is to provide them with a more personalized and customized investment management solution that goes beyond the cookie cutter solutions available today and helps them grow and scale their businesses,” says Sangeeta Moorjani, head of Fidelity’s Workplace Managed Accounts business. “An increasing number of employers and employees are recognizing that a managed account is a great option for people who may not have the experience or confidence to manage their own retirement savings, especially during times of market uncertainty.”