Enhancements coming to how we deliver investment advice

Giving your employees even more support when navigating life’s important financial decisions.

The latest changes to the DOL’s Fiduciary Investment Advice Rule allow us to expand how we support participants when they contact Fidelity for help with investment strategy decisions. For plan sponsors who have enabled our participant investment advice service for their retirement plans, we’re making enhancements to how we deliver in-plan investment and distribution recommendations. These service model changes are anticipated to take place by the end of 2021.

Whenever your participants contact us with questions and concerns about their investments and financial wellness, we’ll be here to guide them:

Asset allocation conversations

There are no changes to the support your participants receive today via Fidelity’s online tools such as NetBenefits® or live interactions with our associates.

Model portfolio recommendations

There are no changes to the support your participants receive today via Fidelity’s online tools such as NetBenefits® or live interactions with our associates.

Investment strategy recommendations

We’re making minor changes to the investment strategy experience and updating the methodology used to deliver recommendations—including: 

  1. Asking more specific questions about whether they need a personalized solution when determining whether target date funds may be a good fit 
  2. Similar to today, answers to the new questions will be factored into an updated methodology to provide a recommendation

Distribution option support

In addition to the education we’ve always provided, after a thorough conversation, Fidelity can now act as an ERISA fiduciary and offer participants specific recommendations based on their best interest. When your participants contact Fidelity, our licensed associates follow a framework—

Step 1: We educate them on their options (stay in their plan, rollover, IRAs or cashing out)

Step 2: Then, we help them understand the factors to consider in making a distribution decision (including tax implications, planning, investment options).

Step 3: Often, participants feel comfortable in making a decision after Step 2. However, if they’re still unsure, we can provide a recommendation that considers specific factors, investments and costs.

Questions?

Contact your Fidelity representative.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Advice provided with respect to non-ERISA retirement plans will not be deemed fiduciary in nature under ERISA or the Internal Revenue Code.

For plan sponsor and investment professional use only.

Approved for use in Advisor and 401(k) markets. Firm review may apply.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

Target Date Funds are an asset mix of stocks, bonds and other investments that automatically becomes more conservative as the fund approaches its target retirement date and beyond. Principal invested is not guaranteed.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

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