"Do-good" or "socially responsible" investing - meaning choosing investments based on environmental, social, and governance factors or excluding investments in tobacco or weapons, for example - has been rising in popularity. However, the Department of Labor is adopting amendments to the "investment duties" regulation under ERISA, which require plan fiduciaries to select investments and investment courses of action based on financial considerations as opposed to "nonpecuniary" benefits such as social, environmental, or other policy goals. The rule, which applies to retirement plans sponsored by private employers governed by ERISA, will be effective 60 days after publication in the Federal Register.
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DOL Releases Final Rule on "Do-Good" Investing
Published Tuesday, November 3, 2020 3:02 pm