Bloomberg Law quoted partner Julie Stapel in an article about a case challenging the authority of the US Department of Labor (DOL) to promulgate its sustainable 401(k) investing regulation.
The district court initially upheld the rule, but the US Court of Appeals for the Fifth Circuit sent the case back to the district court to consider the impacts of the US Supreme Court’s decision overturning the Chevron doctrine, which gave deference to agencies’ interpretations of ambiguous statutes.
“If I were the DOL, I would argue there’s no need to defer, but that the notion central to this rule is that ESG [environmental, social, and governance] factors are indeed appropriate considerations among many when a fiduciary is making investment decisions,” Julie told the publication.
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