Key Takeaways
- • The Department of Labor's proposed rule on fiduciary duties in selecting designated investment alternatives closes for public comment today (June 1, 2026) at 11:59 p.m. EDT, with nearly 37,000 comments submitted during the 60-day comment period.
- • The proposal implements President Trump's Executive Order 14330, "Democratizing Access to Alternative Assets for 401(k) Investors," designed to expand retirement plan access to alternative assets including private equity and real estate.
- • The proposed rule establishes a six-factor safe harbor for fiduciaries evaluating investment selections: performance, fees, liquidity, valuation, benchmarking, and complexity, grounded in documented, reasoned decision-making.
- • The rule supplements and expands the 1979 Investment Duties Regulation and cleared White House review, with proponents arguing it is structured to encourage innovation in retirement investing while withstanding legal scrutiny.
Summary
Today marks the final deadline for public comments on the Department of Labor's proposed regulation clarifying fiduciary duties in the selection of designated investment alternatives for retirement plans. The 60-day comment period, which opened in April 2026, closes at 11:59 p.m. EDT, with the agency having received nearly 37,000 comments from stakeholders including plan sponsors, asset managers, financial advisors, and retirement industry participants.
The proposed rule stems directly from President Trump's Executive Order 14330, titled "Democratizing Access to Alternative Assets for 401(k) Investors." The initiative aims to broaden retirement plan investment options by facilitating inclusion of alternative assets—principally private equity and real estate—in plan investment lineups, thereby providing retirement account holders with greater access to these traditionally institutional-focused asset classes.
At its core, the proposal establishes a process-based safe harbor designed to guide fiduciaries through prudent investment selection. The safe harbor identifies six evaluation factors: performance, fees, liquidity, valuation, benchmarking, and complexity. This framework is intended to replace prescriptive rules with documented, reasoned decision-making requirements, allowing fiduciaries greater flexibility in evaluating both traditional and alternative investments while maintaining their prudence obligations under the Employee Retirement Income Security Act (ERISA).
The regulation supplements and expands upon the foundational 1979 Investment Duties Regulation, modernizing fiduciary standards in light of evolving retirement plan structures and asset markets. According to sources familiar with the proposal's development, the rule is architecturally designed to withstand legal challenges while encouraging innovation in retirement investment strategy. The proposal successfully cleared White House review, signaling executive branch support for the rulemaking.
With the comment period closing today, the DOL will now enter the review and drafting phase for a final rule, during which agency officials will assess the substantial public input received.
The proposed rule stems directly from President Trump's Executive Order 14330, titled "Democratizing Access to Alternative Assets for 401(k) Investors." The initiative aims to broaden retirement plan investment options by facilitating inclusion of alternative assets—principally private equity and real estate—in plan investment lineups, thereby providing retirement account holders with greater access to these traditionally institutional-focused asset classes.
At its core, the proposal establishes a process-based safe harbor designed to guide fiduciaries through prudent investment selection. The safe harbor identifies six evaluation factors: performance, fees, liquidity, valuation, benchmarking, and complexity. This framework is intended to replace prescriptive rules with documented, reasoned decision-making requirements, allowing fiduciaries greater flexibility in evaluating both traditional and alternative investments while maintaining their prudence obligations under the Employee Retirement Income Security Act (ERISA).
The regulation supplements and expands upon the foundational 1979 Investment Duties Regulation, modernizing fiduciary standards in light of evolving retirement plan structures and asset markets. According to sources familiar with the proposal's development, the rule is architecturally designed to withstand legal challenges while encouraging innovation in retirement investment strategy. The proposal successfully cleared White House review, signaling executive branch support for the rulemaking.
With the comment period closing today, the DOL will now enter the review and drafting phase for a final rule, during which agency officials will assess the substantial public input received.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.