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Could There Be Changes To ERISA Fiduciary Requirements Under The Biden Administration? | Roetzel & Andress


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President Biden nominated Marty Walsh, Mayor of Boston, as Secretary of Labor, and as his nomination remains pending, questions arise on what changes will be made regarding ERISA fiduciary rules that were established under the Trump Administration.
One rule that will likely be reviewed, and possibly changed, is a final rule regarding the “environmental, social and governance” (ESG) factors used by fiduciaries to determine Employee Retirement Income Security Act (ERISA) investments. These factors continuously have been reviewed by Republican and Democratic Departments of Labor most recently by the Trump Administration, which established the “Financial Factors in Selecting Plan Investments” final rule. The Financial Factors Rule generally prohibits ERISA fiduciaries from considering “non-pecuniary” factors for plan investments. This Rule received criticisms because it has been perceived as possibly dete ....

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