Bill > HR4237

This bill amends the Investment Advisers Act of 1940 and the Employee Retirement Income Security Act of 1974 to specify requirements concerning the consideration of pecuniary (financial) and non-pecuniary (non-financial) factors by investment advisors and plan fiduciaries. The key provisions are: 1. Investment advisors must determine the best interest of customers based on pecuniary factors, unless the customer provides informed consent to consider non-pecuniary factors. If non-pecuniary factors are considered, the advisor must disclose the expected and actual pecuniary effects to the customer. 2. Pension plan fiduciaries must act solely based on pecuniary factors, except when unable to distinguish between investment alternatives using pecuniary factors alone, in which case they may use non-pecuniary factors if properly documented. The bill also directs the Comptroller General to study the impact of state and local pension plan underfunding on the federal government, and the SEC to conduct studies on climate change and other environmental disclosures in the municipal bond market, as well as the effectiveness of rules governing the solicitation of municipal securities business.

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https://www.congress.gov/bill/118th-congress/house-bill/4237/all-info