Fiduciary Duties in Selecting Designated Investment Alternatives

April 07, 2026 | Matt Nowak, AIF®, Associate Director of Defined Contribution

On March 30, 2026, the Department of Labor (DOL) issued its proposed regulation: Fiduciary Duties in Selecting Designated Investment Alternatives. This comes after the executive order released by the Trump Administration last August which asked the DOL to clarify its position on alternative assets as well as provide guidance to plan sponsors on fiduciary processes for incorporating alternative investments into DC plans. Marquette’s first DC Perspectives paper on this topic can be found here.

The key takeaways from this newly proposed regulation for fiduciaries selecting designated investment alternatives (DIAs) in participant-directed defined contribution plans include:

• Process matters most: Fiduciary decisions will continue to be evaluated based on a prudent and well‑documented process, focused solely on participants’ best interests.
• Asset‑neutral framework: The DOL does not require or prohibit any particular asset class, including alternative investments.
• Clear evaluation factors: To qualify for safe harbor protection, fiduciaries should evaluate DIAs across six areas — performance, fees, liquidity, valuation, benchmarking, and complexity.
• No immediate changes required: The proposal does not require plans to add new investment options or alter current menus; changes occur only if a fiduciary chooses to act.

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