02.24.21
Walsh to Revisit Trump-Era ESG, Proxy Voting Rules
by: Brian Croce
Secretary of Labor nominee Marty Walsh has concerns about two recent rule-makings finalized under the Trump administration and, if confirmed, will instruct the Employee Benefits Security Administration to re-examine the rules, according to a written response to a question posed by Sen. Patty Murray (D-WA), chair of the Senate Health, Education, Labor, and Pensions Committee. Walsh took issue with the DOL's rule that ERISA plan fiduciaries cannot invest in "non-pecuniary" vehicles that sacrifice investment returns or take on additional risk. Walsh also noted DOL's proxy voting rule, which provides a regulatory framework for plan fiduciaries to follow when they exercise shareholder rights. The rules were finalized in November and December, respectively, and became effective days before the Biden administration took office.
Read the full article on Pensions & Investments.