Morgan Stanley says it is developing a retirement program for small 401(k) plans, called ClearFit, in cooperation with recordkeeper Ascensus, so that its advisors can offer the “turnkey” service to clients in need of plans with less than $10 million in assets.
Morgan Stanley has been telling its 15,700-plus advisors that many of its planned changes will happen regardless of what happens to the Labor Department’s new fiduciary rule under a Trump presidency. The wirehouse has said its retirement account clients can work with commissions or fees in the future and that it will be lowering some charges for trades.
“Partnering with Morgan Stanley, we have developed a simple approach for employers to meet their fiduciary responsibilities, while contributing towards the financial well-being of their employees,” said Kathleen Connelly, head of client experience and relationship management at Ascensus, in a statement.
For the program, Morgan Stanley will serve as the ERISA investment manager and select plan investments, which will entail a multi-manager approach and nonproprietary funds. Target-date models passed on Morgan Stanley’s proprietary retirement glidepaths also will be used.