The Trump Administration took a major step this week to get politics out of investments, and investments out of politics. Among the government agencies with a hand in financial regulation, the Department of Labor may seem an unlikely candidate to come to the rescue of everyday investors, but this week it took action to ensure investors are protected from the political agenda of activist fund managers.
On Monday the DOL's Office of Regulations and Interpretations released new guidance on how investment managers should consider their fiduciary duties. The Field Assistance Bulletin issued a stark warning to managers of employer-sponsored retirement funds to beware of politically motivated investment strategies, especially those under the environmental, social and governance (ESG) umbrella.
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