DOL plots new proxy voting rule

According to the new Spring 2020 Unified Agenda of Regulatory and Deregulatory Actions, the DOL plans to pursue a “deregulatory action [that] would modernize fiduciary practices related to the voting rights associated with ERISA plan investments and harmonize those regulations with the requirements of other regulators.  The goal of this proposal would be to protect the interests of participants and beneficiaries by: (1) addressing practices that could present conflicts of interest associated with proxy advisory firm recommendations; (2) ensuring that proxy voting decisions are based on best information; and (3) ensuring that proxy voting decisions are solely in the interest of, and for the exclusive purpose of providing plan benefits to, participants and beneficiaries.”

This appears to be in response to the President’s April 2019 Executive Order.