Retirement Plan Participants to Receive Direct Investment Advice

CitiStreet, a joint venture between Citigroup and State Street Corp., announced today that it will provide investment advice directly to plan participants using systems built by Financial Engines Advisors, an independent investment advisory firm

This will be the first time that 401(k) investors will receive specific investment advice from the firm that manages their plans. CitiStreet said that the new advice model is a result of an advisory opinion issued last December by the Department of Labor. The Department of Labor letter allows financial institutions to provide advice directly to retirement plan participants as long as it’s done by an independent advisory firm.