Most funds operate under an exemption from ERISA, which avoids compliance with burdensome ERISA regulatory requirements. The DOL concluded that an asset allocation fund with a privateequity component may be offered to participants in an ERISAcovered individual account plan.The Court of Appeals for the First Circuit ruled on November 22 in favor of private equity funds, thus settling a longrunning dispute. Riskmanagement requirements. 3. Adherence to any limits as defined in the Client's investment guidelines. 4. The amendments clarify the application of ERISA's fiduciary duties of prudence and loyalty to selecting investments and investment courses of action. The Court found that the state statute "binds ERISA plan administrators to a particular choice of rules for determining beneficiary status. With a record number of private equity firms in the marketplace, including numerous new entrants, competition is increasing for available opportunities. ERISA sets fiduciary standards that require employee benefit plan funds be handled prudently and in the best interests of the participants.