Bill > S2282

This bill, the Ensuring Sound Guidance Act, amends the Investment Advisers Act of 1940 and the Employee Retirement Income Security Act of 1974 to specify requirements around the consideration of pecuniary (financial) and non-pecuniary (non-financial) factors by investment advisers and fiduciaries of employee benefit plans. The key provisions are: 1. Investment advisers must determine the best interest of customers using pecuniary factors unless the customer provides informed written consent to consider non-pecuniary factors, in which case the adviser must disclose the expected and actual pecuniary effects. 2. Employee benefit plan fiduciaries must act solely in the interest of plan participants and beneficiaries, and can only consider non-pecuniary factors if they are unable to distinguish between investment alternatives based on pecuniary factors alone. 3. The bill requires the Securities and Exchange Commission (SEC) to study the extent of climate change and environmental disclosures by municipal securities issuers, as well as the effectiveness of rules governing the solicitation of municipal securities business.

Housing and Urban Affairs

https://www.congress.gov/bill/118th-congress/senate-bill/2282/all-info