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SEC Proposes to Amend Regulation S-P: Privacy of Consumer Financial Information and Safeguarding Customer Information

On March 15, 2023, the SEC issued a release (the “Release”) containing proposed amendments to Regulation S-P (the “Proposals”) that, if adopted, would require broker-dealers, registered investment companies (with business development companies, “registered funds”) and investment advisers to adopt written policies and procedures creating an incident response program to deal with unauthorized access to customer information, including procedures for notifying persons affected by the incident within 30 days. The Proposals would be in addition to the SEC’s other pending cybersecurity regulations.

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The Department of Labor Provides a Road Map for Offering Private Equity and Other Alternative Investments in 401(k) Plans


Time to Read: 1 minutes Practices: Asset Management, Private Funds, Private Equity, Sponsor Representation, Regulatory Compliance for Private Funds, Executive Compensation & Employee Benefits, ERISA

On June 3, 2020, the U.S. Department of Labor issued guidance stating its view that plan sponsors of 401(k) and other defined contribution plans may offer participants access to alternative assets (including private equity funds) through broadly diversified investment options such as target date funds. Although this guidance does not change the law, it may encourage plan sponsors who have been hesitant to offer such products to incorporate alternative assets into their plans.

As the various stakeholders choose to prepare for this opportunity, the following initial steps should be considered:

  • Target date fund managers will need to decide whether and how they will incorporate alternative investments into their product offerings and how they plan to address the valuation and liquidity needs of plan sponsors and their participants.
  • Alternative asset allocators (such as fund of funds managers) should consider how to construct durable asset allocation products that include a good pipeline for future opportunities as 401(k) plan participants’ needs change over time and that can scale up or down in size. Additionally, they should consider how they will comply with their fiduciary duties under ERISA.
  • Alternative fund managers should begin to explore whether and how they can tailor products and investments to better suit the needs of defined contribution plan investors.
  • Plan fiduciaries should follow an objective, thorough and analytical process, which considers all relevant facts and circumstances, when evaluating investment products such as alternative assets.

Please stay tuned for details on our upcoming webinar covering the DOL guidance.

Click here to read the full Alert.

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