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DOL Issues Non-Enforcement Notice For Two Final ESG Investment Rules | Vinson & Elkins LLP

To embed, copy and paste the code into your website or blog: ERISA plan fiduciaries may be breathing a small sigh of relief this week after the U.S. Department of Labor (the “DOL”) issued a statement on March 10, 2021, that it would not pursue enforcement actions for violations of two recently published rules related to Environmental, Social, and Governance (“ESG”) investments. Those final rules, including “Financial Factors in Selecting Plan Investments” (published November 13, 2020) and “Fiduciary Duties Regarding Proxy Voting and Shareholder Rights” (published December 16, 2020), each amended the governing regulations for fiduciary responsibilities under Title I of the Employee Retirement Income Security Act (“ERISA”), Sections 403(c) and 404(a). As a result of the regulations’ amendment, ERISA plan fiduciaries would have been restricted to considering only “pecuniary factors” when selecting investments for ERISA plans. “Pecuniary factors” were defi

DOL Announces Non-Enforcement Policy Of Recent ESG And Proxy Voting Rules - Employment and HR

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