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ESG Act of 2025
4/4/2025, 4:31 PM
Summary of Bill HR 2358
Bill 119 hr 2358, also known as the "Investment Advisers Act of 1940 Amendment Act," aims to make changes to the existing Investment Advisers Act of 1940. The bill specifically focuses on specifying requirements for considering both pecuniary (financial) and non-pecuniary (non-financial) factors when making investment decisions.
Additionally, the bill mandates that the Securities and Exchange Commission (SEC) conduct a study on climate change and other environmental disclosures within the municipal bond market. This study will help to assess the impact of climate change and environmental factors on municipal bond investments, providing valuable information for investors and policymakers.
Furthermore, the bill requires the SEC to conduct a study on the solicitation of municipal securities business. This study will examine the practices and regulations surrounding the solicitation of municipal securities, ensuring transparency and fairness in the municipal bond market. Overall, Bill 119 hr 2358 aims to enhance the regulation and oversight of investment advisers, promote the consideration of both financial and non-financial factors in investment decisions, and provide valuable insights into the impact of climate change and environmental disclosures in the municipal bond market.
Additionally, the bill mandates that the Securities and Exchange Commission (SEC) conduct a study on climate change and other environmental disclosures within the municipal bond market. This study will help to assess the impact of climate change and environmental factors on municipal bond investments, providing valuable information for investors and policymakers.
Furthermore, the bill requires the SEC to conduct a study on the solicitation of municipal securities business. This study will examine the practices and regulations surrounding the solicitation of municipal securities, ensuring transparency and fairness in the municipal bond market. Overall, Bill 119 hr 2358 aims to enhance the regulation and oversight of investment advisers, promote the consideration of both financial and non-financial factors in investment decisions, and provide valuable insights into the impact of climate change and environmental disclosures in the municipal bond market.
Congressional Summary of HR 2358
Ensuring Sound Guidance Act of 2025 or the ESG Act of 2025
This bill further defines the best interest of a customer for purposes of the standard of conduct for all brokers, dealers, and investment advisers. Currently, these professionals must act in the best interest of the customer without regard to the financial or other interests of the professional providing the advice. The bill adds that the best interest standard must be based on pecuniary factors (i.e., a factor that a fiduciary determines will have a material effect on an investment's performance) unless the customer otherwise directs.
In addition, the Securities and Exchange Commission must report on (1) municipal bond disclosures regarding climate change and environmental matters, and (2) the effectiveness of specified rules in preventing the payment of government officials or candidates in exchange for government business in connection with the sale or offer of municipal securities.
Read the Full Bill
Current Status of Bill HR 2358
Bill HR 2358 is currently in the status of Bill Introduced since March 26, 2025. Bill HR 2358 was introduced during Congress 119 and was introduced to the House on March 26, 2025. Bill HR 2358's most recent activity was Referred to the House Committee on Financial Services. as of March 26, 2025
Bipartisan Support of Bill HR 2358
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
1Democrat Cosponsors
0Republican Cosponsors
1Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 2358
Primary Policy Focus
Finance and Financial SectorAlternate Title(s) of Bill HR 2358
To amend the Investment Advisers Act of 1940 to specify requirements concerning the consideration of pecuniary and non-pecuniary factors, to require the Securities and Exchange Commission to conduct a study on climate change and other environmental disclosures in the municipal bond market, and to require the Securities and Exchange Commission to conduct a study on the solicitation of municipal securities business.
To amend the Investment Advisers Act of 1940 to specify requirements concerning the consideration of pecuniary and non-pecuniary factors, to require the Securities and Exchange Commission to conduct a study on climate change and other environmental disclosures in the municipal bond market, and to require the Securities and Exchange Commission to conduct a study on the solicitation of municipal securities business.
Comments
Sponsors and Cosponsors of HR 2358
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