ustin, Texas-headquartered 401(k) Company
-- the online brokerage arm of Donaldson, Lufkin & Jenrette, Inc.
-- have entered into an agreement wherein participants in the former's 401(k) plans will have access to the latter's self-directed brokerage window.
Stocks, bonds, and approximately 7,500 mutual funds will be availble through this option.
This move follows DLJ's recent alliance with SunGard
early last week.
"Participants through the 401(k) Company's plans can access our Internet features either through a link on that firm's website, or they can go directly to our URL," a spokesperson with DLJ told the 401kWire.com. "No matter how they access us, though, the data will be compiled for reporting purposes."
Currently, the service is being beta tested for the 401(k) Company's clients. "There is no system merger really. There are links to pass the data for reporting, but no merger is required. That is why we could get this system up and ready so quickly," the official added.
"In terms of security, there are number of different restrictions that we can customize according to the needs of the plan," the spokesperson stated.
According to the firms, participants will have the opportunity to move any assets that they may hold through another self-directed window of another vendor into this system. Once there are assets from the participants' plan, trading may commence.
"DLJdirect has been a leader in the self-directed brokerage business for more than ten years. They have an excellent reputation, customized reporting capabilities, 24 hour a day, 7 day a week customer service, and a breadth of information and product offerings that will significantly enhance our ability to serve our 401(k) investors," said Jerry Bramlett
, ceo and president of The 401(k) Company.
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