In Practice March 3, 2025

What Recordkeepers Want From Advisers

The crux of a good partnership with an adviser is the willingness to work together, including an open dialogue about the approach to working with a client.
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Art by Clara San Millan

Plan advisers and sponsors have many needs from recordkeepers: smooth management of high volumes of participant data; help with implementation of the most recent regulatory changes; administrative services; certain fiduciary duties; collaboration with third-party administrators; and more. But recordkeepers—facing growing cybersecurity concerns on top of consolidation and fee compression—have needs from advisers and plan sponsors as well.

As the relationship between the players involved in bringing retirement savings to the masses evolves, recordkeepers say meeting those needs is essential to producing the best possible outcomes for participants.

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“Ideally, we would love to have a partnership-type of relationship with the advisers that we work with,” says Francisco Negron, head of retirement plan services at T. Rowe Price. “They get our best when we can do it in the context of a partnership.”

Trust and Transparency

Recordkeepers say communication, transparency and candor are important. According to Negron, the crux of a good partnership with an adviser is the willingness to work together, including an open dialogue regarding the adviser’s approach to working with a client. For example, if an adviser’s playbook includes a fee benchmark with all new clients, they should share that, up front, with the recordkeeper.

That open dialogue also includes exchanging ideas about trends the recordkeepers and advisers are seeing in the marketplace. Negron adds that T. Rowe Price encourages its sales executives to offer to do joint business planning with advisers, which can allow the recordkeeper to serve the advisers’ objectives, as well as build the trust needed for the advisers to refer new business to the recordkeeper.

“This doesn’t happen to the extent that I would like it to at this point, but it’s something worth aspiring to,” Negron says.

The earlier that candidness between the recordkeeper and adviser arises, the better, agrees Joe Mrozek, vice president and national sales manager for Lincoln Financial’s retirement plan services division.

“Set a clear understanding of what the adviser wants … and how we will go about delivering on these wants and needs,” Mrozek says. “Setting these parameters up front leads to a healthy and productive relationship. ‘What are your deliverables and how can we complement them?’ This is the first question we ask advisers to achieve a mutually beneficial partnership.”

The result of such candor should be a positive plan sponsor client and participant retirement plan experience.

“The overall synergies of these relationships continue to be critical,” says Christopher Alpaugh, a senior vice president and head of DCIO sales at Fidelity Investments.

Awareness of New Solutions

Recordkeepers look to advisers to be knowledgeable guides to plan sponsors—and that includes a willingness to learn about innovative solutions and capabilities.

“The most impactful advisers learn as much as they can about new solutions and offerings to position recommendations that will enable clients to meet the objectives they have for their plans,” says Suzanne Ricklin, vice president of retention and sales for Nationwide Retirement Solutions. “They are always looking for ways to advance their knowledge, as well as the knowledge of their clients.”

That includes providing balanced evaluations that consider investment reviews and selections, fees, plan design features, compliance and regulatory impacts, as well participant services and education offerings. Protected retirement guaranteed income solutions for defined contribution participants, for example, is an area in which Nationwide is seeing a distinct need among retirement savers. While workplace retirement solutions are a great way to address this need, Ricklin says Nationwide could use advisers willing to help bridge the gap.

“It’s not a one-size-fits-all solution, so advisers really need to figure out where it makes sense for plans and make the right connections,” Ricklin says.

Fee Reasonableness

Recordkeepers say they need advisers to appreciate their business model and the need to remain profitable.

“When advisers cut fees from recordkeepers, there has to be a trade-off,” Ricklin says, suggesting that this could come in the form of an opportunity to adjust the services provided or other solutions that make it viable to continue to provide a cost-competitive solution, such as managed accounts or proprietary funds and solutions. “Advisers can help plans evaluate trade-offs so they make well-informed decisions that include price as one variable in the process. This will help ensure all parties understand the reasonable fees that are needed to support the top priorities of the plan.”

Negron says T. Rowe Price loves the opportunity to manage assets, and the company is candid about that with advisers.

“If we have an opportunity to manage assets, then we can push forward just like any business, and that client would be of highest value to us, because they would be hiring us for more than one service,” Negron adds. “If we don’t have that opportunity, given that our model is predicated on having an opportunity to earn the right to manage assets, then maybe our price is not going to be as attractive.”

More on this topic:

A Dual Quest for Participant Assets
What Makes the Best Dynamic Adviser-Recordkeeper Partnerships?
In Practice March 3, 2025

What Makes the Best Dynamic Adviser-Recordkeeper Partnerships?

Advisers tell us what they look for in recordkeepers, from a willing approach to administrative grunt work to the ‘critical’ value of high-level service.
Reported by
Art by Clara San Millan

Recordkeepers are facing increasing pressure to modernize while keeping costs low and maintaining the reliability advisers and clients expect. With consolidation ongoing, the expectations from plan advisers and retirement specialists have evolved significantly, sources say, demanding a heightened focus from providers on technology, service and regulatory compliance.  

Advisers Emily Wrightson, Sarah Parker and David Montgomery weigh in on what makes a recordkeeper stand out in today’s competitive market. 

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Recordkeeper Consolidation Yields Challenges and Opportunities 

As recordkeepers continue to consolidate, absorbing clients from other firms, the transition has had its share of hurdles. Emily Wrightson, a principal in CAPTRUST, acknowledges the growing pains that come with these changes. 

“There’s certainly been challenges with the consolidation process,” Wrightson says. “With recordkeepers absorbing new business, there are occasional service disruptions or adjustments that need to be made. However, the top recordkeepers have been around for a long time and understand how to manage these transitions effectively.” 

Despite the short-term difficulties, Wrightson sees long-term benefits. “At the end of the day, consolidation should ultimately benefit recordkeeping as a whole. As a scale operation, the more efficient and modernized these firms become, the better the service they can provide.” 

However, she emphasizes that selecting the right recordkeeper for a plan goes beyond size and scale. Advisers need providers that prioritize ongoing technological advancements, robust data security measures and exceptional service standards. 

The Pillars of a Strong Recordkeeper 

Sarah Parker, director of retirement plan consulting at SageView Advisory Group, follows what she calls the “rule of three” when evaluating recordkeepers: service quality, technological innovation and regulatory compliance. 

“First and foremost, service is critical,” Parker says. “A strong relationship manager can make all the difference in ensuring participant engagement and plan success. We look for tenured relationship managers who understand the nuances of the industry and can work seamlessly with our clients.” 

Technology, including artificial intelligence, is the second key factor: “A strong digital platform is non-negotiable. Recordkeepers today are more than just administrators—they are technology firms at their core. We want to see continued reinvestment in technology, and we’re particularly interested in AI-driven solutions that enhance the participant experience.” 

Lastly, with regulatory changes such as the SECURE 2.0 Act of 2022 reshaping retirement options, compliance is a must. 

“With the number of regulatory updates in recent years, we need recordkeepers who are not only aware of the changes, but also proactive in implementing them,” Parker says. “A recordkeeper that is behind on compliance is not an option.” 

Advisers Seek Stronger Partnerships 

David Montgomery, the managing director of retirement plan services at Concurrent Investment Advisors LLC, says the relationship between advisers and recordkeepers is specific to each situation. 

“The role of the recordkeeper varies by adviser,” Montgomery explains. “Some advisers prefer to keep recordkeepers in the background, handling only the administrative side of things, while others want them front and center, actively participating in client meetings.” 

Regardless of the approach, one thing remains constant: reliability. 

“Advisers put their reputation on the line when they recommend a recordkeeper,” Montgomery says. “If a recordkeeper falls short, whether through service failures, slow response times or technical mishaps, it directly impacts the adviser’s relationship with their clients.” 

Efficiency is another crucial component. 

“Advisers don’t want recordkeepers to create more work for them,” Montgomery adds. “The best recordkeepers act as true partners, helping advisers streamline their operations, rather than adding to their workload.” 

This has led to a growing trend of advisers offloading more administrative tasks to recordkeepers. 

“More and more advisers are looking to pass off as much work as possible, handling participant inquiries, processing changes, and other day-to-day tasks, so they can focus on higher-level strategic planning,” Montgomery says. 

Ultimately, the role of a recordkeeper has expanded beyond its traditional administrative functions, according to all three experts. They agree that recordkeepers must be technology-driven, service-oriented and regulatory-savvy partners who can support both advisers and participants in achieving long-term financial security. 

“Recordkeepers need to be more than just recordkeepers,” Wrightson says. “They are integral players in the retirement planning ecosystem, and those that invest in technology, security and service will be the ones that stand out.” 

More on this topic:

A Dual Quest for Participant Assets
What Recordkeepers Want From Advisers

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