Fred Reish Comments on Potential of Private Assets in 401(k) Investments in CNBC

Benefits and executive compensation partner Fred Reish commented on 401(k) investments in CNBC as private assets are claimed to soon be accessible in Americans’ retirement accounts.

CNBC reported that the strategies created for 401(k)s thus far will be coming in the form of pooled investments such as collective trusts, or managed accounts overseen by professional investors, instead of standalone investments assessed by individual employees.

“If fiduciaries make a bad investment, not bad an outcome, but bad both in outcome and bad in that they didn’t really vet it properly, they can be sued, and they can be personally liable for damages,” said Reish. “So, not just the company, but also each individual member of the plan committee. Each of those officers and managers that serves on the plan committee can be personally liable. That’s frightening.”