On April 15, 2026, the US Department of Labor (“DOL”) issued Technical Release 2026-01 , which provides guidance on the “application of ERISA’s fiduciary requirements and preemption provisions to proxy advisory services.” The Technical Release follows President Donald Trump’s December 2025 Executive Order, which directed DOL to update its regulations and guidance regarding proxy advisors and proxy voting with respect to ERISA-governed plans. As described more fully below, the Technical Release explains DOL’s views on (1) when a proxy advisory firm is a functional or investment advice fiduciary under ERISA, and (2) when a state law regulating proxy advisory firms is preempted by ERISA.
The bottom line, as DOL emphasizes in its accompanying News Release, is that DOL believes “proxy advisory firms commonly engage in business practices that meet the test for being investment advice fiduciaries” and also “regularly fit the definition of functional fiduciaries” under ERISA. Accordingly, proxy advisors, plan sponsors, and plan fiduciaries should ensure they are engaging in a prudent process and acting in the best interests of their plan participants when voting the shares of ERISA-governed plans.