DOL Clarifies When Proxy Advisory Firms Are ERISA Fiduciaries: What Plan Fiduciaries Need to Know
On April 1, 2026, the Department of Labor (DOL) issued Technical Release 2026-01 (the “Technical Release”), providing guidance regarding the application of ERISA’s fiduciary requirements to proxy advisory firms. The Technical Release addresses the fiduciary responsibilities of plan fiduciaries that use proxy advisers, the circumstances under which proxy advisory firms may be treated as ERISA fiduciaries, and the extent to which ERISA preempts state laws regulating proxy advisory services. The Technical Release follows President Trump’s December 2025 Executive Order directing the DOL to reconsider its guidance regarding the fiduciary status of individuals who manage or advise on proxy voting. As discussed in our prior article, Proxy Voting Back in the Spotlight – Practical Steps for Now, the Executive Order specifically directed the DOL to consider whether proxy advisers that provide advice for a fee regarding shareholder rights attributable to shares held by ERISA plans should be treated as investment advice fiduciaries.