JACKSON, Miss. – New guidance has been released by the SEC to better protect retirees’ finances from breaches of fiduciary duty due to DEI and ESG policies. The announcement comes just weeks after State Treasurer David McRae joined 22 state financial officers on a letter to the SEC and Department of Labor, urging the agencies to take this specific action.
“ESG funds prey upon retirees, charging high fees and often fewer returns,” said McRae. “I applaud the SEC for hearing our concerns and issuing these critical protections for retirees and investors. This is a big victory in our efforts to combat ESG, but we must keep the pressure on regulators and financial professionals to uphold their fiduciary duties and protect those working hard to save for their retirement.”
In recent years, the shareholder proposal process has been weaponized by activist investors for their own agenda. For example, some entities staged a coup to replace board members with anti-oil activists, an abuse of the system. The SEC’s new guidance would force fund managers that hold 5 percent of public companies to disclose why and how they acquired their stake, and the purpose they have investing in the company.
For more information or to book an interview, please contact Brittany Comins at press@treasury.ms.gov.
