The Department of Labor has published its final regulation on the consideration of ESG and other factors in selecting investments for retirement plans. The regulatory provisions for prudence and loyalty in selecting investments for ERISA-governed plans are effective on January 30, 2023.
This article discusses the new guidance and its meaning for financial professionals who help plan sponsors select and monitor the investments for participant-directed plans, such as 401(k) and 403(b) plans. While the regulation only applies to ERISA-governed plans, many government plan sponsors of, e.g., public school 403(b) plans, are likely to have similar expectations.
The views expressed here are those of Fred Reish. They should not be construed as investment advice or as the views of Hartford Funds or the employees of Hartford Funds. They are based on available information and are subject to change without notice. The information above is intended as general information and is not intended to provide, nor may it be construed as providing, tax, accounting or legal advice. As with all matters of a tax or legal nature, please consult with your tax or legal counsel for advice. This material and/or its contents are current at the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Fred Reish.
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