Category: Legislative & Regulatory Update

Impact of SEC Rule Changes for Money Market Funds Regulatory Update

Over the past year, the SEC has been phasing in regulatory changes for money market funds resulting from adopted amendments to Rule 2a-7. These amendments were passed on July 12, 2023, in response to the stress that money market funds faced at the start of the pandemic in March 2020 when investors rapidly pulled more than $130 billion dollars from money market funds. As a result, the Treasury and Federal Reserve had to step in to provide emergency liquidity facilities to shore up the short-term funding market. The changes primarily focus on institutional prime and tax-exempt money market funds, which have historically been more susceptible to investor runs.

This regulatory update summarizes these changes as well as which fund types are impacted.

Defined Contribution Plan Legislative Update – 1Q 2024

This legislative update covers proposed regulation by the Department of Labor defining “investment fiduciary,” outlines SECURE Act 2.0’s optional provision regarding student loan repayments, analyzes an increasing trend of private real estate investments within defined contribution plans, summarizes new guidance from CFA Institute defining responsible investment terminology, and reviews 2024 contribution limits from the IRS.

Defined Contribution Plan Legislative Update – 1Q 2023

This legislative update covers the SECURE Act 2.0, part of the Consolidated Appropriations Act, 2023 signed into law by President Biden on December 29, 2022. SECURE 2.0 is a follow-up law to the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) and includes an array of changes that will impact employer retirement plans.

The text itself is quite lengthy (357 pages to be exact) so we have summarized a few of SECURE 2.0’s key provisions, broken down by effective date. While many provisions are already in effect, there is a grace period for compliance. For the 2023 effective date provisions, amendments to satisfy the new rules must be adopted by plans no later than the end of the 2025 plan year for nongovernmental plans, and the end of the 2027 plan year for governmental plans and collectively bargained plans. SECURE 2.0 also extends the plan amendment deadline for the SECURE Act, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 to align with the plan amendment deadlines noted above.

Read > 1Q 2023 DC Legislative Update

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Sustainability Briefing – 3Q 2022

Sustainable investing is not new to Marquette. Ranging from mission-driven screening to minority-owned investment manager utilization, Marquette has been partnering with clients for over thirty years to implement investment strategies that address a myriad of environmental, social, and governance (ESG) themes. But something has shifted over the last few years, bringing ESG to the forefront of client discussions and manager presentation decks. To help clients navigate this evolving space, we will be sharing quarterly briefings that highlight trending topics surrounding sustainable investing.

In this edition:

  • Greenwashing and increased regulatory scrutiny by the SEC
  • ESG and sustainability-themed ETF flows
  • The SEC’s recent proposed rule, File No. S7-10-22: The Enhancement and Standardization of Climate-Related Disclosures for Investors
  • Business impact of increasing interest and attention to ESG themes:
    • Electric vehicle adoption
    • Unionization efforts
    • ESG disclosures by corporate issuers

Read > 3Q22 Sustainability Briefing

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Defined Contribution Plan Legislative Update – 2Q 2022

This legislative update covers the SECURE Act 2.0, summarizes requirements in the SECURE Act for defined contribution plans to provide participants with lifetime income illustrations, addresses the Department of Labor’s recent guidance regarding cryptocurrencies in retirement plans, and reviews plan features and enhancements employers are considering to improve employee retention amidst the “Great Resignation.”

Read > 2Q 2022 DC Legislative Update

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Defined Contribution Plan Legislative Update – 4Q 2021

This legislative update covers Congress’ continued negotiation of retirement legislation with the hope of finalizing Secure Act 2.0 early next year; as it stands, there are two legislative bills proposed by the House and Senate. We also review updates from the Department of Labor on a proposed rule entitled Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights that would allow plan participants to consider environmental, social, and governance (ESG) factors when selecting investments and exercising shareholder rights; recent cybersecurity guidance from the Department of Labor; an upcoming review and report by the Government Accountability Office for Congress on Target Date Funds; and 2022 contribution limits issued by the IRS.

Read > 4Q21 DC Legislative Update

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Build Back Better Act: Proposed Tax Changes by the House Ways & Means Committee Legislative Update

The House Ways and Means Committee released 881 pages of a proposed bill that would make changes to the tax code impacting income, estate, and gift taxes on September 14th, 2021. The bill will most likely see some changes to reach a majority vote in the Senate, but even with some revisions to the current proposal, major tax reform is expected in 2022. In this legislative update, we provide a summary of potential tax code changes based on the most recently available information.

Read > Build Back Better Act: Proposed Tax Changes by the House Ways and Means Committee Legislative Update

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Defined Contribution Plan Legislative Update – 2Q 2021

This legislative update covers the Secure Act 2.0, provides an update on the Department of Labor’s enforcement of its final rules on ESG investments and proxy voting by employee benefit plans, reviews best practices for investment committees coming out of the disruptions caused by COVID, and examines growth and integration of Health Savings Accounts (HSAs) as offerings in defined contribution plans.

Read > 2Q 2021 DC Legislative Update

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Defined Contribution Plan Legislative Update – 4Q 2020

While legislators have been focused on negotiating the next round of stimulus and dealing with the implications of the recent election cycle, the U.S. Department of Labor (DOL), as the primary regulator of the Employee Retirement Income Security Act (ERISA), has been fairly active with issuing proposed changes and final rules that may impact many of our defined contribution plan clients in the past several months.

This legislative update covers recent communications regarding private investments in defined contribution plans, proxy voting guidelines, ESG considerations (an update to an earlier Proposed Rule), and 2021 contribution limits.

Read > 4Q 2020 DC Legislative Update

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

 

Financial Factors in Selecting Plan Investments Proposed Rule

On June 23rd, 2020, the U.S. Department of Labor released a proposal to amend certain fiduciary regulation around the consideration of economically targeted investments, or those that incorporate environmental, social, and governance factors.

The purpose of this legislative update is to provide some background on ESG integration and the subsequent DOL guidance on these issues as well as a summary of the Proposed Rule and its impact on ERISA plans.

Read > Financial Factors in Selecting Plan Investments Legislative Update

For additional Marquette coverage on sustainable investing, reference our recent newsletter, Sustainable Investing in a Post-COVID World, and white paper, The Future of Investing: Sustainability and ESG Integration.

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.