Financial advisors face a persistent challenge: helping clients manage their largest asset while waiting for the elusive rollover event. Absolute Capital Management offers a solution that addresses the fundamental gap in financial planning—accessing and managing held-away 401(k) accounts while clients remain employed.
Brenden Gebben, CEO of Absolute Capital, sat down with The Wealth Advisor to discuss how the firm provides what many advisors have long sought: legitimate, compliant access to clients’ 401(k), 403(b), and 457 plans before the rollover conversation even begins.
The distinction between proper access and workarounds has never been more important, as major custodians crack down on credential-sharing practices and state regulators increasingly scrutinize compliance frameworks. Now, Absolute Capital provides the authorized access model that allows advisors to manage workplace retirement accounts without regulatory risk.
Understanding Held-Away Asset Management
The concept of held-away 401(k) management initially sounds like specialized territory, but Gebben reframes the conversation around what should be standard practice for advisors.
“They think of some niche business, but really it’s a fundamental part of a financial plan for advisors with their clients—because usually that’s the biggest asset that someone has—and they think they have to wait for the rollover to be able to help the client,” he explains. “What we do is we say, ‘Nope, you could help the client now while they’re still in plan before they retire or have a break in service.’”
The approach centers on working directly with participants rather than attempting to influence plan menus or becoming a 401(k) consultant. When advisors first hear about Absolute Capital’s services, misconceptions often arise about the firm’s role—assuming it acts as a recordkeeper or attempts to sell entire 401(k) plans to employers.
“That’s not the case at all,” Gebben clarifies. “We’re helping them one client at a time where they’re at.”
Advisors maintain their existing client relationships while gaining the ability to actively manage assets at eligible employer plans—more than 130,000 plans nationwide—from Apple to state government systems to major universities. The scale of available plans nationwide creates opportunities across virtually every advisor’s client base.
Front-Door Authorization Versus Back-Door Access
Absolute Capital differentiates itself through what Gebben calls “front-door” access: an authorized connection to client accounts that operates transparently with custodians and recordkeepers. The firm works with more than 25 custodians and recordkeepers, creating what Gebben describes as substantial “shelf space” for advisors.
“What that allows us to do is to come in the front door as an authorized party where people know it’s Absolute Capital,” he says. “We’re working with the planner, so the custodian, the recordkeeper, everyone knows that Absolute Capital is on the account, billing from the account and trading the account.”
The contrast with credential-sharing fintech solutions becomes immediately apparent. Unlike some technology providers that rely on client login credentials, Absolute Capital operates as a registered investment advisor with formal agreements in place. No passwords change hands, no impersonation occurs, and the arrangement remains fully visible to plan sponsors and recordkeepers.
Gebben acknowledges the appeal of alternative approaches but points to inherent limitations that emerge over time. “There’s some fintechs out there who are doing it that direction, but in our view, there’s just a host of potential problems which could not make it a scalable solution for an advisor’s business,” he says.
Absolute Capital’s infrastructure took years to build, requiring deep knowledge of how custodians operate, how to establish proper connections, and how to execute trades within plan structures.
“We’ve literally spent decades understanding this business, having a real blueprint of how to do it correctly, knowing how different custodians and recordkeepers work, how to connect things, build things, trade things,” explains Gebben. “So, having that blueprint in place that was built over years is really a foundational part of what we do at AbsCap.”
The firm estimates access to more than 130,000 plans nationwide—not every plan, but most plans where advisors seek to provide management services. The time and effort invested in establishing proper protocols and relationships create a foundation that cannot be replicated quickly by firms seeking shortcuts through credential sharing.
The Regulatory Environment Tightens
Recent actions at major custodians highlight the compliance gap between authorized access and credential sharing. Fidelity led the charge by restricting advisor access via client credentials, resetting passwords for affected accounts. Schwab followed with similar measures, reflecting a growing trend.
The mechanics of credential sharing explain why custodians view the practice as problematic. Some fintech platforms allow what Gebben calls “two-way data” flow, letting advisors view account information and execute trades using client login credentials.
“The problem with that is that the recordkeepers and the custodians think it’s the client,” he notes. “And I’ve never seen a plan document that says it’s okay for an advisor to have a client credential and trade with that client credential.”
The perception that custodians act from profit motives misses the fundamental point. “Well, that couldn’t be further from the truth,” Gebben says. Recordkeepers have fiduciary obligations to plan sponsors, including protecting account access according to plan documents.
“And that goes back to there’s not a planned document out there that I’ve ever seen that says it’s okay to spoof client credentials to come in that back door. You need to be an authorized person or entity to do so,” Gebben emphasizes. “So, these recordkeepers are not doing this for some greedy profit motive. They’re doing it because that’s what they’re hired to do.”
State securities regulators have also weighed in. Some agencies explicitly prohibit credential sharing, others discourage it, and even regulators with softer stances require rigorous compliance documentation. The regulatory tide is clear, and advisors relying on credential-sharing technology face increasing uncertainty.
When custodians reset credentials, advisor access disappears immediately. For fee-based advisors, the disruption creates operational and fiduciary concerns, leaving questions about mid-billing-cycle interruptions largely unanswered in the credential-sharing model.
Expanding Beyond Core Menu Options
Absolute Capital’s service extends beyond simply accessing and managing existing 401(k) investment options. In approximately 75% of engagements, the firm expands available choices beyond core menu offerings through a model marketplace.
Where participants might typically face 15 to 20 investment options, the marketplace provides access to more than 350 choices from major providers including Vanguard, BlackRock, American Funds, and Dorsey Wright, alongside specialty managers.
The expanded universe enables advisors to build portfolios aligned with individual client needs rather than accepting menu limitations. “So, that really allows the planner and the client to risk align it for the client,” Gebben notes.
The capability to deploy multiple managers simultaneously and construct customized allocations addresses one of the primary limitations advisors face when clients remain in-plan. Rather than accepting menu constraints or waiting for distribution events, advisors can implement appropriate investment strategies immediately using institutional-quality managers.
Operational Scalability and Fee Structure
Absolute Capital operates as a TAMP, handling trading, billing, and administrative functions that would otherwise burden advisors managing accounts directly.
The firm maintains RIA-to-RIA agreements with advisory practices, collecting fees directly from participant accounts and remitting the advisor’s portion to their home office. “So, we kind of work in that RIA-to-RIA channel,” Gebben explains. “But we work with several advisors who are all working with different clients within the same plan.”
Multiple advisors can work within the same plan simultaneously, each serving their own clients. An Apple employee working with one advisory firm and another Apple employee working with a different firm can both receive Absolute Capital management services through their respective advisors. The platform accommodates parallel service relationships within large employer plans without conflict.
The fee collection capability also distinguishes regulated RIA platforms from technology-only providers. “Absolute Capital, we do the trading, we do the billing, we have the model marketplace. We’re able to collect fees out of the client account,” Gebben notes. “Fintechs that are not regulated don’t have the authority to be able to withdraw a fee to be able to trade the account. That is, to me, not a scalable solution.”
Lacking that authority, unregulated fintechs can create friction that undermines scalability. Advisors can unintentionally trap themselves in operational overload when managing numerous 401(k) accounts without proper support.
Building Long-Term Client Relationships
Beyond the immediate benefit of managing substantial assets earlier in client relationships, held-away account management positions advisors strategically for rollover events. The service addresses what Gebben identifies as a fundamental planning need: “You’re able to help the client with this foundational asset to truly be able to help them” by having insight into potentially all of their retirement assets.
The motivation behind comprehensive planning remains clear among advisory professionals. “Now, naturally, advisors want to be helpful to the client. They should do that in a way that’s above board. It’s not questionable,” Gebben observes. “And everyone wants to be able to incorporate that within the financial plan. But what I would consider is if there’s a couple of different ways you could do it.”
The methods available to advisors vary significantly in compliance posture and long-term viability. Some paths forward involve credential sharing with uncertain regulatory outcomes, custodian access restrictions, and scalability limitations. Meanwhile, Absolute Capital’s front-door authorization model provides transparent, compliant infrastructure designed for sustainable growth.
Clients who see their advisors actively manage workplace retirement accounts develop natural trust and momentum toward consolidation at retirement. Advisors who provide ongoing 401(k) management become the obvious choice for the eventual rollover. Clients naturally associate their workplace retirement accounts with the advisors who managed them throughout their careers, making the rollover conversation straightforward when the time arrives.
Audit Trails and Compliance Documentation
The compliance infrastructure supporting front-door access creates audit trails that can satisfy regulators, custodians, and advisory firm home offices. When Absolute Capital executes trades on participant accounts, the activity appears under the firm’s name with full transparency. Recordkeepers, compliance departments, and regulatory examiners can trace all activity to authorized parties.
Gebben contrasts the approach with self-auditing systems some technology providers offer, where internal records document advisor activity without creating custodian-level audit trails.
“Well, to me, that doesn’t really cut it because the regulators, the custodians, all those people don’t really have that audit trail. So, effectively, you’re auditing yourself and there’s no outside audit ability on that,” he explains.
Independent verification matters especially during examinations or when addressing leadership concerns. Systems relying solely on internal records can fail to meet regulatory expectations, whereas authorized access aims to satisfy audit requirements comprehensively.
Looking Forward
The convergence of regulatory scrutiny, custodian policy changes, and rising demand for legitimate workplace account management marks an inflection point in the industry. Advisors who leave significant client assets outside their management scope risk falling behind.
Gebben believes the choice between approaches has become increasingly stark. “There is a way to do it as a recognized party with front-door authorization versus having to be kind of a ghost advisor sneaking in through that back door with client impersonation.”
The regulatory environment continues evolving, but the direction remains consistent. State securities agencies, major custodians, and plan sponsors align around authorized access standards that protect participants while enabling legitimate advisory services. Advisors seeking to build scalable, compliant practices around held-away asset management face increasingly clear choices about infrastructure partners.
Absolute Capital’s decades of experience establishing custodian relationships, understanding plan structures, and building compliant operational workflows provides advisors with turnkey access to workplace retirement account management. The opportunity to serve clients more comprehensively, generate fee revenue on substantial assets, and position practices for rollover success requires infrastructure built specifically for the purpose.
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Additional Resources
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Disclosures
This was not a paid endorsement. The Firm does compensate The Wealth Advisor for other marketing purposes. Past performance is not to be considered indicative of future performance. Any investment contains risk including the risk of total loss. There is no assurance that the objectives of strategies offered by the Firm will be achieved or successful. Asset allocation and diversification do not guarantee a profit or protect against a loss. For additional information about Absolute Capital Management, visit their website at www.abscap.com or call 888-388-8303.
