Rule to Curb Fiduciaries’ Proxy Power OK’d by White House

A Labor Department final rule that restricts asset managers from voting on certain pension or retirement plan matters was approved by the White House Wednesday, the last step before it’s published in the Federal Register and can take effect.

The Fiduciary Duties Regarding Proxy Voting and Shareholder Rights rule (RIN: 1210-AB91) is expected to bar asset managers from voting on a pension or 401(k) retirement plan matter unless doing so is in the plan’s financial interest. The rule is one of three major proposals released this summer by the DOL’s Employee Benefits Security Administration that affect fiduciary responsibilities ...