Congressman Andy Barr | Rep. Andy Barr Official U.S. House headshot
Congressman Andy Barr | Rep. Andy Barr Official U.S. House headshot
U.S. Congressman Andy Barr, representing Kentucky's 6th District and a senior member of the House Financial Services Committee, has announced the reintroduction of the Ensuring Sound Guidance (ESG) Act. This legislation is designed to protect retail investors by ensuring that asset managers focus on financial returns rather than political or ideological goals.
According to the act, investment advisors are required to prioritize financial returns over factors such as environmental or social objectives when managing client portfolios. "Institutional investors and retirement plan sponsors have a fiduciary duty to maximize returns—not to advance political agendas," Congressman Barr stated.
He further emphasized that "the ESG Act protects hardworking Americans saving for retirement from asset managers who put progressive activism ahead of financial performance. It also ensures continued access to capital for traditional energy producers at a time when American families are already paying more at the pump due to failed energy policies."
The Effort to reintroduce the Ensuring Sound Guidance Act comes amid worries that investment strategies based on political motivations might influence investors' long-term financial plans and alter capital market dynamics.
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