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The US Department of Labour (DOL) has watered down proposals to oblige investors to calculate the direct economic impact of their shareholding voting strategies, after significant market pushback.
The DOL’s revision of the Final Rule on Proxy Voting and Shareholder Rights by Employee Benefit Plans, published after a final consultation period, left out the proposal for a cost/benefit calculation on share voting. The US Forum for Sustainable and Responsible Investment (SIF), welcomed the omission, saying: “This would have been a costly and imprudent use of plan assets – the exact thing DOL should be protecting against.”
The SIF said institutional investors had been unified in opposition to the DOL’s proposals as they were, and that a survey it had carried out found that 96% of asset managers and investment advisers, and 97% of investor organizations, multi-employer…