The Fiduciary is the "Decider"

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President George W. Bush explained the workings of his White House in 2006. He said, “I hear the voices …. But I’m the decider.”

In those often-quoted words, Bush made a point worth recalling this week. President Biden just issued the first veto of his presidency to support the DOL rule.

The importance of the Biden veto is not about assessing environmental, social or governmental (ESG) factors (more on that below). It was about affirming the role of the fiduciary in investment advice.

The role of retirement-plan fiduciaries must transcend the role of elected politicians. The fiduciary must be, in the words of the 43rd president, “the decider.”

The CFA Institute’s Paul Andrews explained why when he said, “Politicians make poor asset managers.”