Democratizing Access to Alternative Assets for 401(K) Investors
14 days ago
- #retirement
- #ERISA
- #alternative assets
- President Trump's executive order aims to expand access to alternative asset investments for Americans in defined-contribution retirement plans.
- The order criticizes regulatory overreach and litigation that has limited investment innovation in retirement plans.
- Alternative assets are defined to include private market investments, real estate, digital assets, commodities, infrastructure projects, and longevity risk-sharing pools.
- The Secretary of Labor is directed to reexamine and potentially rescind past guidance that restricts fiduciary decisions on alternative assets.
- The order seeks to clarify fiduciary duties under ERISA to encourage offering alternative asset funds while balancing risks and returns.
- The SEC is instructed to explore regulatory changes to facilitate access to alternative assets for retirement plan participants.
- The order emphasizes the policy goal of ensuring competitive returns and diversification for American workers' retirement savings.