DOL Proposed Alts Rule Could Fuel Future ERISA Cases

Richard Shea was quoted in a Planadviser article about a rule proposal on the fiduciary duties in selecting designated investment alternatives, thereby providing a regulatory safe harbor. The safe harbor would allow retirement plan fiduciaries to meet their duty of prudence under the Employee Retirement Income Security Act when selecting investments. The safe harbor is available to plan fiduciaries that follow “a prudent process” when selecting investments.

“Litigation has not been able to develop a comprehensive approach to how one thinks about [alternative assets in DC plans],” Richard said. “I think that this proposed regulation is trying to put a lot more meat on the bones of what it is that fiduciaries have to do.”