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    May 14, 2026

DOL Proposal on Alternative Assets in 401(k) Plans: Clarifications of ERISA Duty of Prudence (Part One of Two)

On March 30, 2026, the U.S. Department of Labor (DOL) issued proposed regulations (Proposal) outlining how managers of employer-sponsored 401(k) plans and other participant-directed defined contribution plans (DC Plans) can include alternative assets in the plans they manage under the Employee Retirement Income Security Act of 1974 (ERISA). The Proposal was released in response to President Donald J. Trump’s executive order that was issued on August 7, 2025 (Executive Order). The Proposal constitutes a significant step by the DOL toward creating a legal framework for plan administrators to satisfy the duty of prudence when including alternative assets in DC Plans. Although the industry welcomes the DOL’s guidance, a number of outstanding issues remain before plan fiduciaries can confidently include alternative assets in DC Plans without facing sizable litigation risks. The industry is expected to weigh in on those and other salient points during the Proposal’s comment period, which is open until June 1, 2026. This first article in a two-part series summarizes the Proposal’s clarifications about how the duty of prudence under ERISA applies to alternative assets, considers its relationship with the Executive Order and offers analysis from legal experts about its practical impact on the industry. The second article will analyze the process-based, six-factor safe harbor in the Proposal that supplements the duty of prudence under ERISA, including some practical limitations faced by plan fiduciaries and private fund managers. See our two-part series on the Executive Order: “Key Takeaways and Considerations” (Oct. 2, 2025); and “Navigating ERISA Litigation Risks” (Oct. 16, 2025).

Private Credit Valuations Under Pressure: Enforcement Trends, Litigation Risks and Mitigation Tactics

Pressure on the private credit industry is highlighting an emerging area of potential regulatory scrutiny and civil litigation – the valuation of illiquid, rarely traded credit assets that are particularly hard to value, and thus vulnerable to extensive second-guessing. That risk is particularly acute in environments that are prone to dramatic fluctuations caused by market events, especially if fund managers’ policies and procedures – often developed during, and in anticipation of, steadier conditions – are not equipped for those circumstances. In a guest article, Jenner & Block attorneys Stephen Ascher, Charles D. Riely and Shailee Diwanji Sharma detail the impetus for scrutiny of private credit valuations; the focus of regulators and private plaintiffs on these issues; and what can be done by those in the industry – ranging from fund managers to their boards and valuation committees – to prepare to address this emerging dynamic. See “SEC Examinations and Enforcement Staff Warn Against Certain Private Credit Practices, Fee and Expense Conflicts (Part Two of Two)” (Feb. 20, 2025).

Trends in Fund Finance Market and Key Terms Reflect Increased Diversification and Industry Adoption

The fund finance market continues to expand and evolve, according to Haynes Boone’s “Fund Finance Annual Report: 2026” (Report). “The diversification of the fund finance capital base is the defining theme of the Report,” Haynes Boone partner Brent Shultz told the Private Equity Law Report. “What began as a market dominated by a handful of commercial banks has evolved into a broad ecosystem of traditional lenders, private credit providers, insurance companies and structured capital solutions, layered with securitization, collateralized fund obligations and capital relief trades,” he observed. The Report includes both internal data developed by Haynes Boone and data from an industry-wide survey of more than 100 sponsors, lenders and service providers conducted by the firm in the first quarter of 2026. The Report covers pricing trends in financing facilities; the evolution of the market; key terms and conditions of both subscription line and net asset value facilities; and the near-term outlook for the fund finance market. This article examines the key findings from the Report, with additional commentary from Shultz and fellow Haynes Boone partners Deborah P. Low and Albert C. Tan. See “Current Landscape and Trends in Fund Financing Terms and the Rise of Non‑Bank Lenders” (Apr. 3, 2025).

In‑House Insights on Optimizing Compliance Culture

A strong culture of compliance can be labor intensive to build but a lifesaver when the outside regulatory environment becomes precarious and unpredictable. In a panel discussion at the New York City Bar’s Compliance Conference, in-house experts offered insights on the elements of a strong compliance culture, how companies can work to optimize their culture and methods for measuring the strength of that culture through turbulent times. This article synthesizes the discussion with Patricia Cooper, CCO of Stony Brook Medicine; Carmine Guiga, vice president and compliance counsel at NBCUniversal; Jonny Frank, a partner at StoneTurn; and Jonathan New, a partner at BakerHostetler. See “Survey Finds Increased Value in Having a Culture of Compliance” (Jun. 12, 2025).

2026 Securities Enforcement Forum Panel Discusses Current Enforcement Climate

At the 2026 Securities Enforcement Forum New York, a panel of present and former securities regulators, enforcers and compliance professionals took the pulse of the enforcement climate affecting financial services firms. They discussed current SEC enforcement activity, how firms can reduce the risk of a referral to the SEC Division of Enforcement, the ongoing anti-fraud efforts of the U.S. Attorney’s Office for the Southern District of New York (SDNY), the regulatory focus on broker-dealers, the SEC’s continuing focus on insider trading, the SDNY’s new self-reporting guidance and regulatory concerns over the retailization of private funds. This article synthesizes their insights. See “SEC Examinations Staff Shine a Light on How Registrants Are Selected and Ways to Excel During an Exam” (Jul. 10, 2025).

Two Private Investment Funds Partners Join Goodwin Procter in New York

Goodwin Procter has welcomed Julia Kolovarsky and Olya Kurilovich as partners in its private investment funds practice in New York. Both attorneys specialize in the formation of private investment funds across various strategies and sectors. For insights from Goodwin Procter, see “What to Know About the Sleeping Giant That Is the SEC’s Amended Regulation S‑P” (Feb. 19, 2026); and “Unique Tax Considerations of Continuation Funds Compared to Other Secondaries Transactions” (Dec. 11, 2025).

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Trailblazing Women – Contributions, Achievements and Observations of Outstanding Leaders

To mark International Women’s Day, Law Report Group editors, along with our colleagues across ION Analytics’ products, interviewed outstanding women in the industries and jurisdictions we cover. In this article, Jill Abitbol, Robin Barton, Rorie Norton and Megan Zwiebel profile notable women in the data privacy, cybersecurity, AI, private funds and anti-corruption law fields, including (i) Paula Howell Anderson, (ii) Gwendolyn Lee Hassan, (iii) Audrey Koh, (iv) Stacy Feuer, (v) Heather Egan, (vi) Jeewon Serrato, (vii) Stephanie Breslow, (viii) Anne Choe, (ix) Heather Wyckoff, (x) Angie Batterson, (xi) Jacqueline Eaves, and (xii) C. Dabney O’Riordan.

Enjoy reading their inspiring remarks here.