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Pinpoint Policy Institute Submits Public Comment In Strong Support Of Department of Labor’s Proposed 401(K) Alternative Assets Rule

Regulatory Comment

WASHINGTON, D.C. — The Pinpoint Policy Institute today submitted a formal public comment in strong support of the Department of Labor’s proposed rule implementing Executive Order 14330, “Democratizing Access to Alternative Assets for 401(k) Investors.” Pinpoint’s comment letter – which can be read here – states in part:

“Pinpoint Policy Institute urges the Department to finalize this rule substantially as proposed. This rulemaking represents a meaningful and long-overdue step toward closing the investment opportunity gap between everyday retirement savers and institutional investors. The six-factor safe harbor framework is sound, the process-based approach correctly prioritizes fiduciary judgment over rigid outcome mandates, and the rule faithfully executes EO 14330’s directive to expand access while curbing unnecessary litigation risk. …

“America’s workers deserve the same opportunities to build wealth that have long been available to pension funds, endowments, and high-net-worth investors. This rule moves us closer to that goal. We appreciate the Department’s attention to this matter and look forward to the final rule.”

Pinpoint’s comment fully endorses the rule’s six-factor safe harbor framework and offers four targeted recommendations: 

  • “First, remove the 15% illiquid asset cap from the Liquidity factor as it applies to collective investment trusts, which are regulated by the OCC and not subject to SEC Rule 22e-4. 
  • “Second, provide additional guidance clarifying the meaning of “conflict-free, independent” valuation under the Valuation factor.
  • “Third, include explicit process-based monitoring parameters in the final rule so fiduciaries understand their ongoing obligations and are not deterred from adopting new investment alternatives.
  • “Fourth, state explicitly that obtaining advice from a Section 3(21) investment advisory fiduciary is not required to access the safe harbor, and that a fiduciary’s well-documented independent judgment on that question is entitled to deference.”

Pinpoint’s national polling, conducted by Fabrizio Ward last year, found that 57% of voters support giving workers greater access to private equity through their 401(k) plans, compared to just 13% opposed.

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