H.R. 2358 Introduced Finance and Financial Sector

ESG Act of 2025

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.

  1. Introduced
  2. Committee
  3. Passed House
  4. Passed Senate
  5. To President
  6. Became law
Sponsor Rep. Barr, Andy [R-KY-6] Introduced March 26, 2025 Cosponsors 1 (1 R) Latest action March 26, 2025

Summary

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.

Summary by the Congressional Research Service, Library of Congress.

Congress.gov

Actions

  1. Mar 26, 2025 Referred to the House Committee on Financial Services.
  2. Mar 26, 2025 Introduced in House

Congressional and federal records come from official public sources: the House Clerk, the U.S. Senate, GovInfo and the Library of Congress (bill status), the Federal Register, and the congress-legislators project. They are copied on a schedule and may lag the official record by a few hours; the official sources govern. News and coverage counts are drawn from the 4Search index and reflect what the press published, not 4Search's views. Nothing here is an endorsement of any candidate, party or position. Terms of use.