Fred Reish Speaks on New EO Affecting Private Securities and Digital Assets in ASPPA

In an article for the American Society of Pension Professionals and Actuaries, benefits and executive compensation partner Fred Reish commented on the impending executive order (EO) from President Trump concerning private securities and digital assets. It is expected to cover private placements and digital assets and could address both the retirement and non-retirement investment sectors.

In the article, Reish said that the EO will likely be directed to both the United States Securities and Exchange Commission and Department of Labor (DOL) with the aim of making private funds more available to retail investors. He said that guidance from DOL could simply re-iterate that “there is nothing in [Employee Retirement Income Security Act of 1974] that prohibits private equity in plans.” 

Additionally, Reish said that DOL guidance could emphasize the role of a 3(38) fiduciary manager and maybe strengthen the protections for sponsors who hire a 3(38) manager. The sponsor would still be responsible for evaluating the manager but not the underlying funds.