Lobbyists representing some of Wall Street's biggest alternative asset managers have filed a formal request with the Securities and Exchange Commission, urging a relaxation of the longstanding prohibition on intra‑fund trading of private assets. They argue the rule hampers broader inclusion of these investments in retirement plans.

The current ban prevents funds managed by the same firm from buying or selling holdings with each other, a restriction originally designed to curb conflicts of interest. Critics say it also creates operational friction that discourages advisers from allocating pension dollars to illiquid strategies in practice.

Proponents contend that allowing intra‑fund transactions would lower transaction costs and improve liquidity, making private‑market exposure more attractive to 401(k) and IRA custodians. They point to growing demand from institutional investors seeking higher returns than traditional equities, suggesting that regulatory relief could unlock billions in new capital flows.

Financial advisers watching the petition see a potential shift in product design, as firms could bundle private‑asset vehicles across multiple fund series without breaching current rules. If the SEC grants the relief, managers may accelerate the push to embed private holdings in mainstream retirement accounts, reshaping asset allocation benchmarks.