Key Takeaways
- • Mayer Brown partners Erin Cho and Richard Nowak provided expert commentary on a Department of Labor proposed rule governing alternative asset investments in 401(k) plans, drawing coverage across major financial and legal media outlets including The Wall Street Journal, Bloomberg Law, Reuters, CNBC, and Pensions & Investments.
- • The proposed rule focuses on fiduciary duty of prudence (Section 404(a)(1)(B)) standards for 401(k) plan sponsors selecting alternative investments, addressing how retirement plans should evaluate private assets alongside traditional securities.
- • The rule proposal targets the $14 trillion retirement market and could expand Wall Street access to 401(k) capital by clarifying fiduciary requirements around private equity and alternative asset allocation.
- • Mayer Brown submitted a comment letter on behalf of the Coalition for Modern Retirement Solutions (CMRS) to the Labor Department during the rulemaking process, positioning the firm as a substantive player in shaping retirement plan investment policy.
Summary
The Department of Labor's proposed rule on alternative assets in 401(k) plans generated significant market and legal attention in mid-2026, with Mayer Brown partners Erin Cho and Richard Nowak serving as key expert sources for media analysis of the rulemaking. The two partners were quoted across a broad spectrum of financial and legal publications, including tier-one outlets such as The Wall Street Journal, Bloomberg Law, and Reuters, as well as specialized retirement plan trade publications including Pensions & Investments, PLANSPONSOR, and PLANADVISER. Cho additionally provided commentary to private equity-focused media, appearing in Private Equity Wire and Private Equity Law Report.
The proposed rule specifically addresses Section 404(a)(1)(B) of the Employee Retirement Income Security Act (ERISA), which establishes the fiduciary duty of prudence governing how 401(k) plan sponsors select and monitor investments. By clarifying standards for evaluating alternative assets—including private equity, private credit, and other illiquid strategies—the Department of Labor effectively created a framework that could facilitate broader allocation of retirement capital to alternatives. The rule proposal carries substantial market implications, as the U.S. retirement system encompasses approximately $14 trillion in assets, and expanded clarity on prudence standards could accelerate Wall Street's penetration into this capital pool through alternative investment vehicles.
Mayer Brown engaged directly in the regulatory process, with Cho and Nowak submitting formal comment correspondence on behalf of the Coalition for Modern Retirement Solutions (CMRS), signaling the firm's substantive involvement in shaping the contours of retirement plan alternative asset policy. The prominence of their media commentary, spanning both generalist financial press and specialized retirement plan publications, reflects the cross-functional importance of the rule to plan sponsors, asset managers, and fiduciaries navigating evolving disclosure and valuation requirements for private assets.
The proposed rule specifically addresses Section 404(a)(1)(B) of the Employee Retirement Income Security Act (ERISA), which establishes the fiduciary duty of prudence governing how 401(k) plan sponsors select and monitor investments. By clarifying standards for evaluating alternative assets—including private equity, private credit, and other illiquid strategies—the Department of Labor effectively created a framework that could facilitate broader allocation of retirement capital to alternatives. The rule proposal carries substantial market implications, as the U.S. retirement system encompasses approximately $14 trillion in assets, and expanded clarity on prudence standards could accelerate Wall Street's penetration into this capital pool through alternative investment vehicles.
Mayer Brown engaged directly in the regulatory process, with Cho and Nowak submitting formal comment correspondence on behalf of the Coalition for Modern Retirement Solutions (CMRS), signaling the firm's substantive involvement in shaping the contours of retirement plan alternative asset policy. The prominence of their media commentary, spanning both generalist financial press and specialized retirement plan publications, reflects the cross-functional importance of the rule to plan sponsors, asset managers, and fiduciaries navigating evolving disclosure and valuation requirements for private assets.
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