Episode summary
401(k) Real Talk Episode 193: May 20, 2026
Summary
Fred Barstein says recordkeeper consolidation continues with Ascensus buying American Trust, but he argues the headline price likely reflects more than the recordkeeping unit alone. He notes American Trust had reportedly struggled to find interest in a standalone sale and had already built a broader platform through a series of acquisitions, including trust and custody, wealth, tech, and PEP capabilities. He suggests the deal may also signal Ascensus under new CEO Nick Good wants to expand beyond core recordkeeping into wealth, trust, CITs, and a bigger PEP strategy.
Barstein also highlights a record wave of advisor movement and dealmaking. He cites nearly 40,000 of 800,000 advisors and registered reps changing firms, with net gains for RIAs and independent broker-dealers and net losses for wirehouses and insurance BDs. He says Echelon tracked a record 142,000 deals and $1.6 trillion in assets last quarter, with private equity-backed acquirers driving the largest transactions.
On alternatives, Barstein sides with Jerry Schlichter and Senator Elizabeth Warren in warning that private credit and private equity are poor fits for DC plans because of opacity, illiquidity, higher costs, and the risk that participant stress could force sales. He closes by arguing that government-driven growth in new 401(k) plans will force major technology and service changes across the industry.
Key takeaways
- Barstein says Ascensus’s purchase of American Trust may be about broader trust, wealth, and PEP capabilities, not just recordkeeping scale.
- He says advisor mobility and M&A are near record levels, with 142,000 deals and $1.6 trillion in assets last quarter, according to Echelon.
- Barstein argues private equity and private credit remain a bad fit for DC plans because of liquidity, transparency, and due diligence concerns.
- He says government mandates are accelerating new 401(k) plan formation, which will pressure providers to rethink technology and service models.
Notable quotes
“rep recordkeeper consolidation marches on with a census paying a reported robust price for pebacked American trust”
“the big kahuna is Midatlantic which serves as a trust and custody provider now with 185 billion in assets serving 125,000 retirement plans 136,000 clients and over 90 independent record keepers and TPAs”
“almost 40,000 of the 800,000 ARS and registered reps change firms with net gains led by retail RAAS and independent broker dealers and net losses led by wirehouses and insurance BDS”
“private credit and private equity do not belong in DC plans and pose a substantial risk”
“these investments which cost more will require greater due diligence and asked why they need a special safe harbor if they are such good investments”
How the episode opens
Greetings and a warm welcome to this week's edition of 401k real talk. This is Fred Barstein, contributing editor at Wealth Management's RPA channel and CEO at Trrow TPSU and 401k TV. I review all of this week's stories and select the most important and interesting ones, providing open, honest, and candid discussion you will not get anywhere else.
So, let's get real. First story, rep recordkeeper consolidation marches on with a census paying a reported robust price for pebacked American trust. But unpacking the deal reveals that other divisions may have driven the valuation.
It had been reported that American Trust had shopped their recordkeeper division alone, garnering little interest and eventually put the entire company on the block. Eight American trusts founded by former Matrix CEO John Moody had acquired several smaller third tier recordkeepers starting with First Merkantiel in 2019 followed by American Trust, United Trust and LT Trust. But the good the big kahuna is Midatlantic which serves as a trust and custody provider now with 185 billion in assets serving 125,000 retirement plans 136,000 clients and over 90 independent record keepers and TPAs.
They also have a budding wealth practice, tech division and pep group called for fiduciary exchange. This is the first deal for a census in a while and under new CEO Nick Good, which may signal interest in offering wealth and trust services like CITs while expanding their PEP offering. Though Asensus still recordkeeps smaller Vanguard DC plans, they no longer market them as Vanguard is growing their own sales force and outsources larger plan to a census uh Infosys.
Next story, advisors are on the move at near record pace with M&A activity booming. According to Discover, almost 40,000 of the 800,000 ARS and registered reps change firms with net gains led by retail RAAS and independent broker dealers and net losses led by wirehouses and insurance BDS.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- 401k industry news
- acquisitions and mergers
- advisor movement
- private investments in dc plans
- ai for retirement plans
Companies and tickers mentioned
- SCHW
- Ascensus
- American Trust
- Charles Schwab
- PGIM
Watch the episode
Watch “401(k) Real Talk Episode 193: May 20, 2026” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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