Regulatory Outlook | 09.02.20
Newly Proposed DOL Rule Would Curb Fiduciaries' Proxy Power
Under a new proposal from the DOL, fiduciaries and other asset managers would be prohibited from voting proxies or exercising other shareholder rights impacting a retirement plan unless a matter has an economic impact on pension and 401(k) plans. The proposal sets forth additional “permitted practices” under which the plan fiduciary can adopt certain proxy voting policies and parameters to only serve in the plan's economic interest. DOL's Employee Benefits Security Administration sought the rulemaking to establish clearer proxy voting guidance for fiduciaries out of concern prior guidance caused confusion, the agency said Monday. The proposal relates to efforts to limit the ability of fiduciaries to incorporate ESG factors when making investment decisions.
Read the full article on Bloomberg Law.