Pontera’s New Non-Discretionary Move Could Change Held-Away 401(k) Advice (again)

Pontera is changing how advisers may be able to work with clients’ held-away retirement accounts for the second time.

The company is building a non-discretionary advice workflow designed for firms that want to advise on a client’s 401(k), without directly implementing the trades themselves.

Why does that matter?

Because not every adviser wants discretionary control, and not every client wants to give it up.

Pontera says the new workflow is meant to give firms more flexibility while keeping the client involved in the final investment decision.

Here’s how it may work: advisers can review the client’s balances, holdings, available investment options, and plan documents, then create an allocation recommendation inside Pontera.

The client receives step-by-step guidance and decides whether to make the changes themselves. Pontera can then track whether the recommendation was implemented, send reminders, refresh account data, and maintain an audit trail for supervision and documentation.

That is the bigger story.

Advisers increasingly need more ways to provide structured, documented held-away advice.

Pontera’s new workflow is another sign that the industry is moving in that direction, as now financial firms will be able to decide if held-away advice should be implemented by the adviser or participant.

More choice = better outcomes!

This is exciting and welcomed news for every financial firm with clients that are still working!