Fidelity customers lose 401(k) access. Some call it a 'mind-boggling' power grab. But the company says it's about safety

Core Viewpoint - The ongoing conflict between Fidelity and Pontera highlights the challenges customers face in accessing their 401(k) accounts when using third-party financial advisors, with Fidelity implementing restrictions that may limit consumer choice and access to their retirement funds [3][10]. Group 1: Fidelity's Policy Changes - Fidelity has begun enforcing a new policy that restricts access for third-party financial advisors, resulting in customers losing online access to their 401(k) accounts when they enlist outside help [4][5]. - The company expressed concerns about "credential sharing," which they believe enables third parties to take high-risk actions within customer accounts [3][10]. - A Fidelity spokesperson stated that customers can restore access by contacting a company representative directly, despite the online access being blocked [1]. Group 2: Customer Experiences - Customers like Kelly Havins have reported losing online access to their accounts after being warned by Fidelity, leading them to work with their financial advisors to regain access [2][6]. - Financial advisor John Rathnam criticized Fidelity's approach, suggesting that the situation could have been handled better, as it risks cutting off clients from their largest savings accounts [6]. Group 3: Pontera's Position - Pontera has framed the situation as a "battle" for consumer choice, accusing Fidelity of an "anticompetitive power grab" that forces clients to use Fidelity's in-house advisors [10]. - Pontera claims to provide a secure way for financial advisors to access clients' 401(k) accounts without compromising personal login credentials, but has faced challenges in establishing a secure connection with Fidelity [4][12]. Group 4: Industry Implications - The conflict raises broader questions about consumer choice in financial advisory services, as many Americans prefer to select their own advisors for managing retirement accounts [14]. - The debate also touches on the regulatory landscape, with some financial professionals noting that Pontera operates in a less regulated environment compared to traditional financial advisors [11][12].