Mercer Advisors: Securely bridging the fiduciary gap in retirement planning through technology
As the retirement and wealth management industries continue to converge, forward-thinking advisors are increasingly recognizing the opportunity to extend fiduciary care from the retirement plan level to individual participants. Despite clear demand and regulatory support, many advisors still hesitate, worried about compliance pitfalls and perceived conflicts of interest.
But these concerns are largely misconceptions. The truth is that providing participant-level fiduciary investment advice is acceptable within the ERISA framework and a powerful way to deliver improved client outcomes and future-proof your practice.
The legal green light: What ERISA really says
A common myth in the industry is that plan-level fiduciaries cannot serve participants without violating ERISA. As ERISA attorneys Fred Reish and Joshua Waldbeser explained in our recent webinar, there’s no rule prohibiting a plan-level fiduciary from offering participant-level advice, so long as the services are clearly defined, fees are reasonable, and all disclosures are made to the client.
Department of Labor (DOL) guidance, like Interpretive Bulletin 96-1 and the “hire me” rule, explicitly supports a model where advisors can market themselves to participants without triggering fiduciary liability, enabling people to independently hire advisors to manage their 401(k) assets without imposing selection, monitoring, or fee oversight responsibilities on plan sponsors, so long as the sponsor does not endorse or facilitate the arrangement.
The regulatory foundation has been laid. Now advisors need the right framework and technology to act confidently.
Technology as the fiduciary enabler
Without modern tools, participant account access can present challenges: advisors either have to log in using participant credentials, which raises cybersecurity, custody, and compliance issues, or provide advice to clients from afar.
Now, for the first time, that’s changing: secure, third-party solutions are emerging—options previously impossible because the technology didn’t exist. Platforms like Pontera are built on technology that enables direct account oversight without compromising security, custody rules, or compliance standards. The technology is new, but the need for advisors and sponsors to adapt is urgent—because this infrastructure is here to stay.
With tools like Pontera, advisors can:
- View and manage participant accounts without login access
- Avoid taking actions that could trigger custody
- Reduce DOL bonding and supervisory burdens
- Maintain a clean digital record of all account actions
By minimizing risk while enabling deeper service, these tech solutions are making fiduciary participant engagement both viable and scalable.
Mercer Advisors: Effective and compliant fiduciary guidance in action
Mercer Advisors is no stranger to providing both individual and plan-level guidance in compliance with fiduciary standards. The firm leverages Pontera’s secure technology to manage participant 401(k) accounts as part of a comprehensive wealth strategy.
Jaron Carmichael, Director of Retirement Group, Wealth Advisor, at Mercer Advisors, stated that after seeing positive results, plan participants often proactively request Mercer’s help with their personal finances—preferring that Mercer Advisors take discretionary control of their accounts through Pontera, rather than navigating investment options, logging into the recordkeeper’s site, and making manual adjustments themselves.
“Some of the plan sponsor clients that we serve are interested in the offering for themselves, because they prefer to utilize our expertise, and [for us to] help them with making the selections of their investments that are tailored to their situation,” Carmichael said.
Carmichael explained that Mercer’s use of Pontera is fully aligned with their mission to enhance client outcomes and manage all of their assets in accordance with their unique goals and stated objectives as part of a comprehensive financial plan.
“Authorizing us to link to those accounts on their behalf through Pontera is just a natural part of Mercer advisors, simplifying their financial lives and amplifying what they can do with those accounts,” he said.
Critically, Mercer distinguishes between its fiduciary and non-fiduciary roles with clarity and transparency. When managing participant accounts, they clearly communicate whether they’re providing fiduciary advice or general education.
According to Carmichael, a common sentiment among plan sponsors is: “We already trust you to be the discretionary investment manager for our core lineup. Why wouldn’t we trust you to also manage our participant accounts?”
When participants’ questions extend into broader planning, like student loans, estate plans, or external IRAs, Mercer transitions them to a separate wealth management engagement, ensuring clear disclosure of roles, services, and fees.
Shaping the future: Adapting to new technology
As Carmichael put it, “When we put clients first, everything else falls into place.” Advisors who embrace this model aren’t just expanding revenue, but they’re delivering next-level, integrated services in line with their fiduciary duties.
By adapting and utilizing new and secure technology, clearly disclosing fees and roles, and aligning with ERISA guidelines, advisors can confidently bridge the gap between retirement planning and wealth management. Advisors who move decisively and transparently will give clients what they want, while helping shape the future of financial planning.
