Overview

• President Trump’s August 7 Executive Order directed the DOL, SEC and Treasury to broaden defined-contribution plan access to private equity, private credit, real estate, digital assets, commodities, infrastructure projects and longevity income products.
• On August 12 the DOL formally withdrew its December 2021 Supplemental Private Equity Statement, removing a key caution and suggesting a broader interpretation of its 2020 private-equity guidance.
• Core ERISA duties for prudence, monitoring, valuation and liquidity remain unchanged, requiring plan sponsors to maintain rigorous due diligence before offering alternative investments.
• The Executive Order gives the DOL and SEC 180 days to reexamine ERISA policies, clarify fiduciary processes and propose regulatory updates, including possible safe harbors to limit litigation risks.
• Asset managers and recordkeepers are designing compliant fund structures, liquidity solutions and fee models in anticipation of new alternative-asset options, which may not debut until 2026 or later.