Securities and Exchange Commission Commissioner Mark Uyeda calls for easing regulations to allow more private equity and credit investments in retirement plans, citing potential for higher returns and better diversification amid ongoing policy debates.
Securities and Exchange Commission Commissioner Mark Uyeda has strongly advocated for expanded access to private market investments, such as private equity and private credit, within 401(k) and other defined contribution retirement plans. Speaking at the Investment Company Institute’s Retail Alternatives and Closed-End Funds Conference in New York, Uyeda argued that the current regulatory environment, which largely restricts these investments, shortchanges U.S. retirement savers by limiting diversification and risk-adjusted returns.
Uyeda characterised the prevailing regulatory approach as overly “paternalistic,” suggesting that it prioritises rigid protection over prudent opportunity for long-term investors. He emphasised that private market assets have long been a valuable component of public pension systems, including those managed by CalPERS and the Massachusetts Pension Reserves Investment Trust, which have achieved double-digit annualised returns in selected periods over the past decade. Highlighting that illiquidity in private investments naturally commands a premium, Uyeda noted that 401(k) participants typically do not require daily liquidity and could benefit from the higher expected returns associated with longer holding periods.
In his address, Uyeda urged for regulatory frameworks that serve as “guardrails, not gates,” facilitating responsible inclusion of private assets under robust fiduciary oversight rather than outright prohibitions. He cited modern portfolio theory and empirical data to support the incorporation of private investments, stating: “The answer is not zero. The absence of access is not the same as the presence of protection.”
This call for reform aligns with the heightened focus in Washington on private market access in retirement accounts, sparked in part by an executive order issued in August 2025 directing regulators to provide guidance to facilitate such inclusion. The SEC’s 2025 examination priorities have also identified oversight of private fund exposure in retirement and retail investor products as a key area of attention. Despite private assets being technically eligible in retirement plans for years, their actual adoption remains limited due to litigation risks, regulatory uncertainty, and operational complexities faced by plan sponsors.
Data supports a modest upward trend: The 2025 PLANSPONSOR DC Plan Benchmarking Report showed that 3.9% of responding defined contribution plans offered alternative investments, including private equity, up from 2.2% in the prior year. Uyeda’s proposals resonate with a growing bipartisan chorus, including many Republicans in Congress, advocating for regulatory safe harbours that would protect plan sponsors who follow federal guidance when incorporating private investments.
Expanding broader access to private markets is seen by proponents not only as compatible with defined contribution plans but as an enhancement to them. Uyeda underscored that defined benefit plans have traditionally employed prudent allocations to private assets under the fiduciary framework of the Employee Retirement Income Security Act (ERISA), which similarly could apply to defined contribution plans with appropriate regulatory guardrails.
Beyond retirement plans, Uyeda’s broader agenda at the SEC includes proposals to expand retail investors’ access to private companies and private offerings. This would involve revising the ‘accredited investor’ standard and altering rules under the Investment Company Act of 1940 to facilitate greater retail participation in private funds. Uyeda also noted at recent industry forums the growing role of private markets in US economic growth, with private funds managing nearly $31 trillion in assets by late 2024, rejecting concerns that private market growth diminishes public markets and instead emphasising their symbiotic relationship.
As regulators deliberate on how best to balance innovation, investor protection, and transparency in these complex and illiquid asset classes, Uyeda’s remarks reflect a significant push towards modernising retirement investing frameworks to better serve the evolving needs of long-term savers by embracing diversification through private market exposure. However, the timing of forthcoming regulatory guidance may be affected by ongoing government shutdowns, adding an element of uncertainty to this evolving policy landscape.
- https://www.planadviser.com/sec-commissioner-uyeda-blasts-paternalistic-protection-of-401k-investors/?utm_source=rss-feed&utm_medium=news&utm_campaign=feed – Please view link – unable to able to access data
- https://www.sec.gov/newsroom/speeches-statements/uyeda-remarks-diversification-deficit-opening-401ks-private-markets-112025 – In his speech at the ICI Retail Alternatives and Closed-End Funds Conference, SEC Commissioner Mark Uyeda advocated for the inclusion of private investments in 401(k) plans. He argued that excluding private assets reduces risk-adjusted returns and diversification for retirement savers. Uyeda highlighted that defined benefit plans have historically invested in private assets under ERISA’s fiduciary framework, which permits prudent allocations to such assets. He emphasized that a zero percent allocation to private investments is not optimal and artificially constrains diversification, urging for regulatory guardrails that enable responsible exposure under a robust fiduciary process.
- https://www.napa-net.org/news/2025/11/sec-commissioner-backs-inclusion-of-private-investments-in-401ks/ – At the Retail Alternatives and Closed-End Funds Conference in New York, SEC Commissioner Mark Uyeda supported the inclusion of private securities in diversified portfolios within defined contribution plans. He noted that private investments like private equity, private credit, venture capital, infrastructure, and real estate offer return profiles less correlated to traditional public markets. Uyeda emphasized that for funds with target dates far into the future, the intended holding period aligns better with the limited liquidity of exempt offerings, suggesting that long-term investors may benefit from higher expected returns associated with longer holding periods.
- https://www.kslaw.com/news-and-insights/sec-commissioner-uyeda-advocates-for-private-investments-in-401k-plans – In his speech at the ICI Retail Alternatives and Closed-End Funds Conference, SEC Commissioner Mark Uyeda argued that excluding private assets from 401(k) plans is a policy choice that reduces risk-adjusted returns and diversification for retirement savers. He noted that defined benefit plans have historically invested in private assets under ERISA’s fiduciary framework, which permits prudent allocations to such assets. Uyeda emphasized that a zero percent allocation to private investments is not optimal and artificially constrains diversification, urging for regulatory guardrails that enable responsible exposure under a robust fiduciary process.
- https://401kspecialistmag.com/secs-uyeda-pushes-for-private-markets-in-401k-plans/ – SEC Commissioner Mark Uyeda advocated for the inclusion of private investments in 401(k) plans, stating that private investments like private equity, private credit, venture capital, infrastructure, and real estate offer diversification and reduced liquidity not typically seen in traditional public markets. He emphasized that long-term investors, such as those saving for retirement, do not require daily liquidity and may benefit from the higher expected returns associated with longer holding periods. Uyeda cited data from CalPERS, reporting a preliminary 11.6% return on its investments for fiscal year 2024-2025, as evidence of the potential benefits of private investments.
- https://financefeeds.com/secs-uyeda-retail-investors-should-have-exposure-to-vc-and-crypto-in-401ks/ – At the SIFMA Private Markets Valuation Roundtable, SEC Commissioner Mark Uyeda underscored the growing role of private markets in fueling U.S. economic growth and the regulatory complexities associated with valuing illiquid assets. He emphasized the balance between innovation, investor protection, and the need for transparency as private funds manage trillions in assets. Uyeda noted that private markets have expanded significantly over the past decades, with private funds alone managing $30.9 trillion by Q4 2024, and rejected the notion that private market growth diminishes public markets, instead stressing their symbiotic relationship.
- https://www.proskauer.com/alert/sec-acting-chair-remarks-on-private-capital – In recent remarks at the Florida Bar’s 41st Annual Federal Securities Institute and M&A Conference, SEC Acting Chair Mark Uyeda outlined his agenda for a ‘return to normalcy’ at the SEC. His proposals include expanding retail investors’ access to private companies by modifying the ‘accredited investor’ standard under Regulation D and revising rules under the Investment Company Act of 1940 to facilitate broader retail participation in private funds. These changes aim to bring significant alterations to the private offering regime and substantially expand the pool of investors eligible to participate in private offerings and private funds.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is based on a recent speech by SEC Commissioner Mark Uyeda on November 20, 2025, advocating for private investments in 401(k) plans. This is the earliest known publication date for this specific content. The speech was reported by reputable sources such as the SEC’s official website ([sec.gov](https://www.sec.gov/newsroom/speeches-statements/uyeda-remarks-diversification-deficit-opening-401ks-private-markets-112025?utm_source=openai)) and King & Spalding ([kslaw.com](https://www.kslaw.com/news-and-insights/sec-commissioner-uyeda-advocates-for-private-investments-in-401k-plans?utm_source=openai)). No evidence of recycled or republished content was found.
Quotes check
Score:
10
Notes:
The direct quotes attributed to Commissioner Uyeda in the narrative, such as his statement that “the answer is not zero.” ([sec.gov](https://www.sec.gov/newsroom/speeches-statements/uyeda-remarks-diversification-deficit-opening-401ks-private-markets-112025?utm_source=openai)), appear to be original and have not been identified in earlier publications. No discrepancies or variations in wording were found.
Source reliability
Score:
10
Notes:
The narrative originates from reputable sources: the SEC’s official website and King & Spalding, a well-established law firm. These sources are known for their credibility and authority in the field.
Plausability check
Score:
10
Notes:
The claims made in the narrative align with Commissioner Uyeda’s known positions and recent public statements. For instance, his remarks at the SIFMA Private Markets Valuation Roundtable on September 4, 2025, emphasized the importance of private markets in economic growth ([sec.gov](https://www.sec.gov/newsroom/speeches-statements/uyeda-remarks-sifma-private-markets-valuation-roundtable-090425?utm_source=openai)). The narrative’s tone and language are consistent with official communications from the SEC.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is fresh, original, and sourced from reputable outlets. The quotes are unique and consistent with Commissioner Uyeda’s known positions. No signs of disinformation or credibility issues were identified.