Trump signs order to increase investment options in US retirement system

WASHINGTON/ISTANBUL

US President Donald Trump has signed an executive order Thursday paving the way for alternative assets such as digital assets, private equity, and real estate to be included in individual retirement plans.

A statement from the White House said that Trump wants to offer American workers more investment options to ensure they have a stronger and more financially secure retirement.

The statement also noted that the Department of Labor has been instructed to review existing investment rules for retirement plans, known as "401(k)" plans in the US.

It said that the appropriate processes for including alternative assets in these plans should be clarified.

"In carrying out the directives in this section, the Secretary shall, as appropriate, consult with the Secretary of the Treasury, the Securities and Exchange Commission (SEC), and other Federal regulators as necessary to carry out the policy objectives of this order, including as to parallel regulatory changes that may be incorporated by such other Federal regulators," it said.

The statement noted that more than 90 million Americans are enrolled in such plans, but most are currently unable to invest in alternative assets, noting that alternative assets offer higher returns and portfolio diversification.

Meanwhile, Trump signed a separate executive order to prevent US banks from refusing service to customers based on their political views, religious beliefs, or legitimate business activities.

The executive order urged banking regulators to eliminate rules that unfairly reject customers based on excuses such as "reputation risk."