Investment professionals can collect payment for a wider range of transactions, so long as they satisfy the reinstated ‘five-part test’ for fiduciaries.
Lawsuit claims default retirement plan investments have underperformed up to 90% of peers for nearly a decade.
The regulation still requires that plans only use financial considerations in investments, but says companies’ pollution and bad governance may be factors, too.
Investment professionals acting in their clients’ best interest can receive compensation for advice such as rollover recommendations, the agency said.
The proposed federal rule takes a dim view of sustainable investing that’s not focused solely on returns.