HR 2358
ESG Act of 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.
Bill status
- Status
- In committee
- Sponsor
- Rep. Andy Barr [R-KY-6]
- Cosponsors
- 1
- Policy area
- Finance and Financial Sector
- Introduced
- 2025-03-26
- Latest action
- 2025-03-26: Referred to the House Committee on Financial Services.
Committee referrals
Recent actions
- 2025-03-26: Referred to the House Committee on Financial Services.
- 2025-03-26: Introduced in House
- 2025-03-26: Introduced in House