Our colleagues Kurt E. Linsenmayer and Cristopher D. Jones just issued an update on the U.S. Department of Labor’s proposal to change the standards for ERISA plan fiduciaries when evaluating investments or voting proxies. Their article discusses the proposed changes and their implications. The DOL’s proposal stands in stark contrast to the ESG-related rules adopted under the prior administration. Those rules, which were never enforced, could have severely hampered the access of retirement plan investors to certain types of ESG strategies by: (i) preventing ERISA retirement plan accounts from investing based on “non-pecuniary” factors in ESG strategies if doing so would sacrifice returns or increase risks for participants, and (ii) prohibiting retirement plan fiduciaries from voting on shareholder resolutions with no direct economic impact on a plan.

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Photo of Gwen Williamson Gwen Williamson

Gwen Williamson represents registered investment companies and their independent directors, as well as investment advisers, family offices, and nonprofit organizations. She advises clients on governance and compliance responsibilities under the federal securities laws, including the Investment Company Act of 1940 and the Investment…

Gwen Williamson represents registered investment companies and their independent directors, as well as investment advisers, family offices, and nonprofit organizations. She advises clients on governance and compliance responsibilities under the federal securities laws, including the Investment Company Act of 1940 and the Investment Advisers Act of 1940. Gwen has significant experience in the ESG and principles-based investing space.