Second Quarter 2026 Regulatory Updates for SEC Registered Investment Advisers

Top 5 Takeaways

1. DOL Opens the Door to More Alternative Investments in 401(k) Plans

   • The Department of Labor has proposed a safe harbor that could make plan fiduciaries more comfortable offering alternative investments, including private equity, private credit, real estate, and infrastructure strategies within retirement plans.

2. Process Matters More Than Asset Type

   • Under the proposed rule, fiduciaries will not be expected to favor or avoid alternative investments. Instead, protection depends on following a prudent evaluation process that examines performance, fees, liquidity, valuation, benchmarks, and investment complexity.

3. New Growth Opportunities for Investment Advisers

   • Advisers and asset managers offering alternative investment products may gain access to a significant new distribution channel through retirement-plan platforms if the DOL’s proposal is finalized.

4. SEC Reinforces Focus on Trade Allocation Controls

   • The SEC’s $100 million enforcement action demonstrates that advisers must maintain effective controls to ensure trade allocations are fair, equitable, and free from favoritism or conflicts of interest.

5. Written Policies Alone Are Not Enough

   • Advisers must actively monitor and test compliance procedures. The SEC emphasized that firms need supervisory systems and data-driven oversight capable of detecting misconduct, not merely documented allocation policies.