United States: US$12.2 Trillion Opportunity–Executive Order Paves the Way for Easier 401(k) Plan Access to Alternative Investments
By: Ruth E. Delaney, Robert L. Sichel, and Jennifer L. Klass
On 7 August 2025, President Trump signed an executive order intended to modernize the 401(k) investment universe, directing the Secretary of Labor to clarify the US Department of Labor’s (DOL) position on fiduciary duties in connection with offering products containing exposure to alternative assets to defined contribution plans, such as 401(k) plans, potentially establishing “appropriately calibrated safe harbors” for such investments. The order also directs the Securities and Exchange Commission (SEC) to ease access to alternative assets for such plans by revisiting applicable regulations and guidance, including that related to accredited investor and qualified purchaser status.
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