As discussed in a previous LawFlash, the US Department of Labor’s Final Rule on Prudence and Loyalty in Selecting Plan Investment Options, also known as the ESG Rule, contains provisions on proxy voting, which are not limited to environmental, social and governance issues. As a reminder, the ESG Rule, including the changes regarding proxy voting, will go into effect on December 1, 2023.

Given that impending effective date, it may be worthwhile to consult the rule’s requirements to confirm that proxy voting policies and other relevant documents will be in compliance with the rule, including specifically the rules for collective funds discussed in our aforementioned LawFlash.