The Department of Labor’s Employee Benefits Security Administration has issued a proposed regulation clarifying the fiduciary duty of prudence under ERISA Section 404(a)(1)(B) in connection with selecting designated investment alternatives for participant-directed individual account plans. While designed to provide investment fiduciaries with increased flexibilities to consider adding alternative assets to their investment menus, the proposal will also compound the complexity of the investment review process and saddle fiduciaries with increased diligence responsibilities. We encourage ERISA fiduciaries to reach out to qualified ERISA counsel to review their existing procedures in light of the proposal and the proliferation of alternative assets.

On February 18, 2026, the Securities and Exchange Commission proposed additional amendments to the reporting requirements on Form N-PORT for certain registered investment companies that will, if adopted, provide those funds with relief from existing requirements, as well as adding certain new reporting requirements. The SEC is seeking public comments on the proposal, which will be due 60 days after publication in the Federal Register.

The Supreme Court will hear Anderson v. Intel, a case that could reshape how ERISA fiduciaries evaluate and select alternative investments like private equity and hedge funds for retirement plans. The case arrives amid significant regulatory activity, including President Trump's August 2025 Executive Order directing the DOL and SEC to reduce barriers to alternative investments in 401(k) plans and pending DOL rulemaking on fiduciary duties in investment selection.