In “Labor Agency to Defend ESG 401(k) Rule in Bad-Blood Jurisdiction,” Bloomberg Law turned to benefits and executive compensation partner Brad Campbell for his commentary on the United States Department of Labor’s (DOL) attempt to implement a climate-friendly retirement investment rule in the U.S. District Court for the Northern District of Texas.
“There’s a big picture issue here about the role of the federal government versus the role of the states…. Jurisdiction is key here,” said Campbell, adding that the Texas lawsuit signals that the 25 red states suing the DOL may have shopped for a friendly venue.
Campbell noted that the fiduciary rule sought to extend the DOL’s regulatory authority to financial advisers and broker-dealers who usually operate outside its reach. “Rather than have a political ping-pong game about whether ESG is good or bad, the proposal the Biden administration has put out restores the traditional approach of government neutrality,” he explained.