Responding to the “terrifying” reality that conflicted investment advice is costing retirement savers billions of dollars each year, on October 31, 2023, the Department of Labor (“DOL”) issued proposed rules representing its latest attempt to expand what it means to be providing “investment advice” for a fee under the Employee Retirement Income Security Act of
Department of Labor
Special DOL Proxy Voting Rules Set to Take Effect on December 1, 2023 – Potential Action Items for ERISA Plan Fiduciaries
By Ira G. Bogner, Seth Safra & Adam Scoll on
In late 2022, the U.S. Department of Labor (the “DOL”) issued final regulations (the “Final Rules”) which address the extent to which ERISA plan fiduciaries may consider environmental, social and governance (“ESG”) factors when making investment decisions and exercising shareholder rights, such as voting proxies, on behalf of ERISA-covered plans. For a detailed discussion of the Final Rules, see here.
Although the Final Rules generally became effective on January 30, 2023, certain special proxy voting-related rules are set to first take effect on December 1, 2023, and may require action by ERISA plan fiduciaries in advance of the effective date.
District Court Replaces Plan Trustees With Independent Fiduciary
By Joseph Clark & Neil V. Shah on
In Su v. Fensler, No. 22-cv-01030, 2023 WL 5152640 (N.D. Ill. Aug. 10, 2023), the court granted the Department of Labor’s motion for a preliminary injunction to replace with an independent fiduciary the trustees of the United Employee Benefit Fund, who are accused of breaching their fiduciary duties by using Fund assets to engage…
Latest ERISA Developments on the IRA Rollover Fiduciary Rules, the DOL’s QPAM Exemption Amendment Proposal and the DOL’s ESG Rules
By Adam Scoll, Ira G. Bogner & Seth Safra on
In addition to the excitement of the upcoming outdoor concert season, Proskauer’s lawyers are anxiously awaiting VERY different forms of entertainment:
- the next installment of the never-ending saga of U.S. Department of Labor (“DOL”) guidance on who is considered an investment advice fiduciary, including whether the fiduciary standard applies to advice on whether to take a rollover;
- finalization of the DOL’s QPAM Exemption amendment proposal; and
- resolution of court challenges to the DOL’s final “ESG” rules.
We discussed these developments at ERISAFest 2023. If you missed it, feel free to reach out to your Proskauer contact for a recording, and be sure to sign up next year!