03.02.23
Congress Moves To Block Investment Rule, Setting Up Veto Fight
by: Stephanie Lai
Congress cleared a measure to block a U.S. Department of Labor rule that allows retirement plan managers to incorporate environmental, social and governance (ESG) factors into their investment decisions, setting up a veto fight with President Biden. The Biden administration put the rule in place to counter a Trump administration rule that sought to limit the ability of retirement and pension plans to consider those issues. The rule does not mandate any action by investors and advisors, who would still be free to disregard ESG factors when deciding how to allocate money. In its policy statement on the bill, White House officials said that the Trump administration rule had a “chilling effect” on advisors who wanted to consider ESG factors. “That rule stepped between workers and the investment advisors that they have trusted to protect their hard-earning life savings,” the statement said.
Read the full article on New York Times