07.27.20
DOL's ESG Proposal "Out Of Step" with Best Advisor Practices: Morningstar
by: Tracey Longo
The Department of Labor's proposed rule on retirement plan investment selection is “out of step” with the best practices that asset managers and financial advisors currently use to integrate ESG considerations into their plans, according to a comment letter from Morningstar. If the DOL passes the rule as proposed, “it would lead to worse outcomes for plan participants as plan sponsors shy away from assessing ESG risks in selecting investments," said the comment letter. "Indeed, since most participants use qualified default investment options—and ESG considerations would be barred in these options—most participants would not get the benefits that ESG risk analysis can deliver.”
Read the full article on Financial Advisor.