The $12T Question: How Far Will 401(k)s Go into Commercial Real Estate?
Litigation attorney Lindsey Camp was interviewed for a Bisnow article about the federal government's shifting policy toward 401(k) plan investments. President Donald Trump issued an executive order directing the U.S. Department of Labor and other federal agencies to review and update guidance on fiduciary responsibilities related to alternative asset investments in 401(k) plans, with a goal of opening the door to investing in areas such as cryptocurrency, commercial real estate and private equity for plans covered by the Employee Retirement Income Security Act of 1974 (ERISA). Ms. Camp commented that regardless of what happens federally, retirement plan sponsors and fiduciaries are still obligated to exercise caution when making investment decisions, noting that large private equity firms will likely be early targets as established industry players with the resources to adapt to regulatory changes.
"At the end of the day, when a plan fiduciary is considering whether to allow an investment in a plan's lineup, they've got to be prudent in the selection. It's going to be easier to get comfortable with a major player as opposed to someone new to the market," she said.
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