Democratizing Access To Alternative Assets For 401(k) Investors

The order could broaden retirement-plan investment options beyond publicly traded assets while requiring fiduciaries to assess costs, risks, returns, and diversification.

What the order does ​

• Directs the Department of Labor to reassess its guidance on alternative assets in defined-contribution plans within 180 days.
• Calls for rules or guidance clarifying fiduciary duties, potentially including safe harbors and measures to curb litigation.
• Defines alternative assets to include private markets, real estate, digital-asset funds, commodities, infrastructure financing, and lifetime-income strategies.
• Directs the Securities and Exchange Commission to consider regulatory changes that could facilitate retirement-plan access to alternative assets.
• Requires consultation among the Labor and Treasury departments, the Securities and Exchange Commission, and other relevant regulators.

Who it affects ​

• Workers and beneficiaries in 401(k) and other participant-directed defined-contribution plans.
• Employers, retirement-plan fiduciaries, investment managers, and plan service providers.
• Alternative-asset firms seeking access to retirement-plan capital.