The retirement account rollover landscape has evolved dramatically in recent years, driven by regulatory changes like PTE 2020-02 and Regulation Best Interest. At the Datos Insights Wealth Management Forum in New York on October 16, 2025, industry leaders gathered to discuss how firms are navigating these challenges and transforming compliance obligations into competitive advantages.
Rethinking Compliance as Infrastructure
Bill Capuzzi, CEO of Apex Fintech Solutions, challenged conventional thinking about compliance investment. Rather than viewing PTE 2020-02 requirements as a regulatory burden, Capuzzi argued that the necessary investments can reshape a firm’s business model. “Modernizing the rollover process creates operational efficiencies that allow firms to change their cost-to-serve model and pursue new client segments,” he explained.
The critical decision facing firms, according to Capuzzi, isn’t simply finding a compliance solution for today’s requirements. It’s choosing between implementing a compliance patch vs. pursuing a foundational upgrade to core infrastructure. Firms that opt for point solutions may address immediate PTE 2020-02 concerns but will likely struggle with future regulatory changes. In contrast, those investing in foundational architectural shifts gain agility and scalability that extends beyond a single compliance mandate.
Capuzzi highlighted the inefficiency built into today’s rollover process: 78% of rollovers require manual intervention, and roughly half of individuals needing support simply give up. The average direct rollover takes 14 days—leaving clients out of the market and anxious about the status of their assets. “The future of retirement rollovers is digital, transparent, and participant-centric,” Capuzzi declared. “Industry leaders should leverage technology to deliver better outcomes, stronger compliance, and a modern participant experience.”
Managing Change Across the Organization
Diane Young from Navy Federal Credit Union provided practical insights into the organizational challenges of implementing enhanced rollover standards. With advisors and support staff across multiple business lines and geographic regions, ensuring consistent application of compliance protocols requires deliberate change management strategies.
Navy Federal has implemented operational controls designed to manage documentation efficiently while maintaining service quality standards that clients expect. The credit union implemented DOL Analyzer, a tool that enables financial advisors to input critical information, compare fees across different plan options, and generate compliant documentation. “It was a springboard for us,” Young explained. “Once you’ve taken care of the rollover decision, it opens the door to the full financial planning conversation—insurance, trusts, debt management, and comprehensive asset allocation.”
To rollover or not to rollover?
Dan Gutman of Prudential Financial shifted the conversation toward cases where rollovers might not be in a client’s best interest. The SECURE Acts 1.0 and 2.0 have materially enhanced the value proposition of keeping assets in employer plans, particularly regarding RMD changes, expanded annuity options, and emergency access features.
Gutman also introduced Prudential’s ActiveIncome product, developed in partnership with Dimensional Fund Advisors, which addresses a longstanding industry challenge. “We’ve eliminated ‘annuity island,'” he explained, describing how the contingent deferred annuity is embedded within the DFA UMA platform. This innovation allows financial advisors to offer lifetime income streams while maintaining the portfolio management flexibility they’ve always had, effectively integrating guaranteed income without segregating annuity assets from the broader investment strategy. Prudential and LPL have also announced the development of an insurance overlay solution.
Alternative Investments and Documentation Requirements
Tom Selman of Scopus Financial Partners explored emerging complexities in the rollover equation. As 401(k) plans increasingly accommodate alternative investments—and potentially crypto assets following recent executive guidance—the traditional advantages of rolling assets to IRAs may diminish. If clients can access sophisticated investment options within their employer plans, the rollover rationale becomes less compelling.
Selman also addressed the practical implications of Regulation Best Interest, particularly the “reasonably available alternatives” concept that emerged from regulatory concerns about rollover recommendations. Meeting these requirements involves substantial technology investment to document compliance, maintain appropriate records, and provide necessary disclosures. “The SEC recordkeeping requirements alone have forced many firms to fundamentally rethink their documentation systems,” Selman observed.
Looking Forward
The panel made clear that the retirement rollover landscape has matured beyond simple product comparisons. Today’s environment requires firms to balance regulatory compliance, operational efficiency, client experience, and evolving in-plan capabilities. Those who view these challenges as opportunities to modernize infrastructure and differentiate their service models will likely emerge as leaders in the next phase of wealth management evolution. Interested in learning more? Reach out to me at [email protected]
