Tag Archives: Fiduciary Duty

In The News: Biden’s New Playbook for Greening the Financial System (The Atlantic)

“The nonprofits Public Citizen and Americans for Financial Reform have released an early copy of their new “roadmap” for climate-finance reform to The Weekly Planet. It’s a guide to what the new executive branch might do to shift the flows of capital toward greener investments.”

“Not that this will be easy. Yesterday, Senator Pat Toomey, a Republican from Pennsylvania, wrote a letter to the San Francisco Fed implying that it should stop researching “climate economics,” labeling the topic “bitterly partisan.” He’s not wrong—climate change is bitterly partisan. But all of the country’s largest banks have issued climate policies nevertheless. And if it is partisan, that is because partisans fought greenhouse-gas regulation for so long that climate change has become a costly and whole-of-society issue. The financial system is where those costs come to roost. Any big problem, ignored for long enough, becomes a financial issue.”

Clean Energy Climate

News Release: Labor Department Will Not Enforce Rules that Impede ESG Investing

In a significant reversal, the Department of Labor (DOL) today announced they will not enforce the anti-sustainable investing rules that were hastily published in the final days of the Trump administration. The two rules, which went into effect in January 2021, would have made it much harder for retirement plans to integrate environmental, social and governance (ESG) risks into their investment practices.

Letter to Regulators: Letter to the Department of Labor urging it to withdraw a proposal that would impose new burdens and costs on retirement plans.

AFREF submitted a letter to the Department of Labor urging it to withdraw a rule proposal that would impose onerous costs and process requirements on private sector retirement plans when deciding whether and how to vote on matters brought to a vote at public companies’ annual meetings. It will impose costs on retirement savers and undermine advances on corporations’ integration of environmental, social and governance factors, including those that have a material financial impact on long-term investment performance

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News Release: Consumer Groups Criticize SEC Investor-Protection Proposal During Agency Roundtable in Baltimore

The SEC’s proposed “Regulation Best Interest” is anything but, a plan for creating a veneer of investor protection that would fail to chase bad practices out of the industry that cost savers $40 billion per year. Many savers fall victim to brokers who steer them into investments that pay lucrative fees but don’t generate the best possible return for investors.

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AFR/CFA Report: Brokers and Insurers Say One Thing in Ads, Another Thing in Contracts

“Twenty-five top U.S. brokerage firms and insurance companies present their employees as trusted financial advisors putting client interests first even as their lobbyists argue in court that they are nothing more than commission-driven salespeople, according to a major new report from the Consumer Federation of America (CFA) and Americans for Financial Reform (AFR). The report also dissects how brokerage firms and insurance companies are systematically misleading unwary consumers.”