U.S. Rep. Andy Barr (R-KY) on March 18 sponsored legislation intended to protect investors from advisors and asset managers who prioritize social and environmental goals over returns.
“Asset managers should be in the business of maximizing returns for investors, not pushing their own political agenda at the expense of everyday Americans,” said Rep. Barr, who serves on the U.S. House Financial Services Committee. “Our bill protects average Americans saving and building wealth through retirement plans.”
The Ensuring Sound Guidance (ESG) Act, H.R. 7151, which the congressman introduced alongside original cosponsor U.S. Rep. Rick Allen (R-GA), also aims to preserve access to capital for energy producers, according to a bill summary provided by Rep. Barr’s office.
The congressman said this would “ensure costs won’t skyrocket further for Americans at the pump during a time when gas prices are at a historic high.”
Under H.R. 7151, investors still would be allowed to allocate their capital in ways that may not prioritize returns if they choose to do so, the summary says.
The measure has been referred for consideration to both the House Financial Services Committee and the U.S. House Education and Labor Committee.