MFA sends letter to DOL on expanding access to alternative investments

MFA submitted a letter to the Department of Labor (DOL) in response to a notice published regarding the proposed regulation concerning fiduciary duties under the U.S. Employee Retirement Income Security Act of 1974 (ERISA).

The letter included seven recommendations:

• Use clear "safe harbor" language
• Ensure meaningful comparisons for three investment alternatives
• Ensure that the examples are illustrative and not exclusive
• Clarify the potential role of independent fiduciaries
• For "allocator" products that are subject to the 40 Act or ERISA, focus the plan fiduciary's consideration of the valuation, liquidity and complexity factors at the allocator product level and to its investment manager
• Adjust the focus of the liquidity factor in "allocator" products with exposure to alternative assets
• Clarify the benchmark factor