The Trump administration’s proposal to require retirement plans to justify their investment in environmental, social, and corporate governance funds could lead to breach-of-fiduciary-duty cases piling up in courts.
A U.S. Chamber of Commerce representative called the proposed guidance “very problematic” and said the administration’s cure is worse than the supposed disease.
“The standards included will easily be challenged because there always could be an investment that performs better,” Chantel Sheaks, the Chamber’s retirement policy director, said. “In addition, the added documentation requirements are a road map for the plaintiffs’ bar.”
The new Labor Department guidance, released Tuesday, mandates that plan ...