,i #aad? ,,congress #a/ ,session ,h4 ,r4 #cibb ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,novemb] #d1 #bjae ,mr4 ,kelly ( ,p5nsylvania 7= himself & ,mr4 ,sam ,johnson ( ,texas7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,education & ! ,work=ce1 & 9 addition to ! ,committee on ,ways & ,means1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf & ! ,employee ,retirem5t ,income & ,security ,act ( #aigd to provide = a be/ int]e/ /&>d = advice fiduci>ies1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,retirem5t ,*oice ,protection ,act ( #bjae4 #b4 ,transf] to ,secret>y ( ! ,treasury ( au?orities reg>d+ individual retirem5t plans 7a7 ,9 g5]al ,section #ajb ( ,reorganization ,plan ,no4 #d ( #aigh 7ratifi$ & affirm$ z law by ,public ,law #ih-ecb 7#ih ,/at4 #bgje77 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by /rik+ & at ! end ( clause 7ii72 7,b7 by /rik+ & at ! end ( clause 7iii72 & 7,c7 by ins]t+ aft] clause 7iii7 ! foll[+3 7iv7 regulations1 rul+s1 op9ions1 & exemptions relat+ to individual retirem5t acc\nts describ$ 9 section #djh7;a7 ( ! ,code & individual retirem5t annuities describ$ 9 section #djh7;b7 ( ! ,code1 includ+ simplifi$ employee p5sions "u section #djh7k7 ( ! ,code & simple retirem5t acc\nts "u section #djh7p7 ( ! ,code2 & 7v7 regulations describ$ 9 section #ajc7;b7 ( ?is ,plan2 2 & 7#b7 by add+ at ! end ! foll[+ new flu% s5t5ce3 ,! ,secret>y ( ! ,treasury %all consult ) ! ,securities & ,ex*ange ,commission 9 prescrib+ regulations1 rul+s1 op9ions1 & exemptions "u subsection 7a77iv7 t provide guidance ( g5]al application z to ! pr(essional /&>ds ( c>e 7:e!r involv+ fiduci>y1 suitability1 or o!r /&>ds7 ow$ by brok]s & inve/m5t advisors to own]s & acc\nt hold]s ( acc\nts & annuities describ$ 9 su* subsection44 7b7 ,jo9t au?ority ,section #ajc ( su* ,plan is am5d$-- 7#a7 by /rik+ ,9 ! case ( & ins]t+3 7a7 ,9 ! case (2 & 7#b7 by add+ at ! end ! foll[+3 7b7 7#a7 ,! ,secret>y ( ! ,treasury & ! ,secret>y ( ,labor %all h jo9t au?ority to issue regulations describ$ 9 ?is subsection1 & any su* regulations %all be issu$ jo9tly by su* ,secret>ies4 7#b7 ,a regulation is describ$ 9 ?is subsection if 7i7 ! regulation is n describ$ 9 clause 7i71 7ii71 7iii71 or 7iv7 ( section #ajb7;a7 ( ?is ,plan & 7ii7 def9es or int]prets a t]m or requirem5t t is includ$ 9 section #dige ( ! ,code or section #djf ( ,,erisa4 ,! det]m9ation ( :e!r any regulation is describ$ 9 ?is subsection %all be made )\t reg>d to :e!r any su* t]m or requirem5t is also us$ or def9$ 9 any o!r provision ( ! ,code or ,,erisa4 4 7c7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to regulations1 rul+s1 op9ions1 & exemptions :i* h n be5 f9aliz$ z ( ,july #h1 #bjac4 7#b7 ,transition ,any f9al regulation1 rul+1 op9ion1 or exemption describ$ 9 section #ajb7;a77iv7 or #ajc7;b7 ( ,reorganization ,plan ,no4 #d ( #aigh 7z add$ by ! am5dm5ts made by ?is section7 :i* 0 issu$ by ! ,secret>y ( ,labor be=e ,july #i1 #bjac1 %all apply until su* "t z su* regulation1 rul+1 op9ion1 or exemption is revok$ or modifi$ pursuant to su* am5dm5ts4 #c4 ,be/ int]e/ /&>d = advice fiduci>ies 7a7 ,am5dm5ts to ! ,int]nal ,rev5ue ,code ( #aihf 7#a7 ,be/ int]e/ /&>d = advice fiduci>ies reg>d+ iras & non-erisa plans ,section #dige7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ ! foll[+ new p>agraph 7#g73 7#g7 ,be/ int]e/ recomm5dation rule = advice fiduci>ies to iras & non-erisa plans 7,a7 ,be/ int]e/ prohibit$ transaction ,= purposes ( ?is section & ) respect to plans n subject to section #djd ( title ,i1 subtitle ,b ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7relat+ to fiduci>y obligations71 ! t]m prohibit$ transaction includes ! receipt ( any consid]ation = 8 own p]sonal acc\nt by any disqualifi$ p]son :o is a fiduci>y by reason ( provid+ inve/m5t advice 7)9 ! mean+ ( section #dige7;e77#c77;,b77 f ! plan or any p>ty 9 connection ) a transaction involv+ ! inve/m5t ( income or assets ( ! plan result+ f ! recomm5dation ( su* p]son1 unless su* inve/m5t advice con/itutes a be/ int]e/ recomm5dation4 ,?is p>agraph %all n apply to any transaction unless su* transaction is describ$ 9 subp>agraph 7,e7 or 7,f7 ( subsection 7c77#a7 7)\t reg>d to any exemption f ! prohibitions ( subsection 7c774 7,b7 ,be/ int]e/ recomm5dation 7i7 ,= purposes ( ?is p>agraph1 ! t]m be/ int]e/ recomm5dation means a recomm5dation provid$ by a p]son act+ ) ! c>e1 skill1 prud5ce1 & dilig5ce "u ! circum/ances !n prevail+ t a prud5t p]son w\ld ex]cise bas$ on ! in=mation obta9$ ?r\gh ! reasonable dilig5ce ( ! p]son reg>d+ factors su* z ! advice recipi5t's age1 & any o!r in=mation t ! advice recipi5t discloses to ! p]son 9 connection ) receiv+ su* recomm5dation1 :]e ! p]son does n subord9ate ! int]e/s ( ! plan or advice recipi5t1 z applicable1 to its own4 7ii7 ,be/ int]e/ recomm5dations may include1 )\t limitation1 recomm5dations t-- 7,i7 are bas$ on a limit$ range ( products1 provid]s or (f]+s 7includ+ recomm5dations t include1 or are limit$ only to1 propriet>y products & provid]s71 :]e su* limits are cle>ly disclos$ to ! advice recipi5t at any "t prior to a transaction bas$ on ! recomm5dation1 or 7,,ii7 may result 9 v>iable comp5sation to ! p]son 7or its affiliate71 su* z transaction1 s]vices1 placem5t1 or o!r types ( comp5sation t diff] by product or s]vice1 :]e ! receipt ( su* comp5sation is cle>ly disclos$ to ! advice recipi5t4 7iii7 ,= purposes ( ?is p>agraph1 cle> disclosure ( v>iable comp5sation means notification at any "t prior to a transaction bas$ on ! p]son's recomm5dation1 9 a mann] calculat$ to be und]/ood by ! av]age individual1 ( ! foll[+ in=mation1 :i* c be provid$ 9 "o or m /atem5ts or docum5ts3 7,i7 ,! p]son 7or its affiliate7 may receive v>y+ am\nts ( fees or o!r comp5sation or consid]ation ) respect to recomm5d$ transactions4 7,,ii7 ,! am\nt ( any fee or o!r comp5sation or consid]ation t is directly payable to ! p]son 7or its affiliate7 f ! plan or advice recipi5t ) respect to recomm5d$ transactions1 provid$ t any su* am\nt may be express$ 9 t]ms ( a monet>y am\nt1 =mula1 p]c5tage ( assets1 p] capita *>ge1 or e/imate or range ( su* comp5sation or consid]ation4 7,,iii7 ,a description ( ! types & ranges ( indirect comp5sation t may be paid to ! p]son 7or its affiliate7 by any ?ird p>ty 9 connection ) recomm5d$ transactions1 provid$ t any su* ranges may be express$ 9 t]ms ( a monet>y am\nt1 =mula1 p]c5tage ( assets1 p] capita *>ge1 or e/imate ( su* comp5sation or consid]ation4 7,,iv7 ,^u ! advice recipi5t's reque/ prior to ! transaction1 a disclosure ( ! specific am\nts ( comp5sation describ$ 9 subclause 7,,ii7 or 7,,iii7 t ! p]son w receive 9 connection ) ! p>ticul> transaction1 provid$ t any su* am\nts may be express$ 9 t]ms ( a monet>y am\nt1 =mula1 p]c5tage ( assets1 p] capita *>ge1 or e/imate ( su* comp5sation or consid]ation4 ,no recomm5dation w fail to be a be/ int]e/ recomm5dation solely because ! p]son1 act+ 9 good fai? & ) reasonable dilig5ce1 makes an error or omission 9 disclos+ ! in=mation specifi$ 9 ?is subp>agraph1 provid$ t ! p]son discloses ! correct in=mation to ! advice recipi5t z soon z practicable1 b n lat] ?an #cj days f ! date on :i* ! p]son kn[s ( su* error or omission4 7,c7 ,correction ,= purposes ( ?is section & not)/&+ subsection 7f77#e7 to ! contr>y1 ! t]ms correction & correct mean1 ) respect to ?is prohibit$ transaction only1 ! paym5t to1 or reimbursem5t (1 actual damages ( ! plan result+ directly f ! plan's reliance on su* inve/m5t advice1 if any1 t h n o!rwise be5 paid or reimburs$ to ! plan1 includ+ paym5ts & reimbursem5ts made pursuant to subsection 7f77#e74 ,any su* damages %all be det]m9$ 9 a mann] consi/5t ) ! damages t w\ld be payable ) respect to su* prohibit$ transaction "u ! ,employee ,retirem5t ,income ,security ,act ( #aigd4 7,d7 ,calculation ( am\nt involv$ ,= purposes ( ?is section & not)/&+ subsection 7f77#d7 to ! contr>y1 ! t]m am\nt involv$ means1 ) respect to ?is prohibit$ transaction only1 ! am\nt ( su* consid]ation receiv$ by ! disqualifi$ p]son ) respect to ! transaction t has n o!rwise be5 paid or reimburs$ to ! plan1 includ+ paym5ts & reimbursem5ts made pursuant to subsection 7f77#e74 4 7#b7 ,modification ( exi/+ /atutory exemptions to ,apply ! be/ int]e/ /&>d to advice fiduci>ies ( iras & non-erisa plans ?r\gh section #dige7;c77#g7 ,section #dige7;d7 ( su* ,code is am5d$ by delet+ ! language prec$+ p>agraph 7#a7 & replac+ x ) ! foll[+3 7d7 ,exemptions ,except z provid$ 9 subsection 7f77#f71 ! prohibitions provid$ 9 subsection 7c77#a7 %all n apply to-- 4 7#c7 ,def9ition ( inve/m5t advice ,subp>agraph 7,b7 ( subsection #dige7;e77#c7 ( su* ,code is am5d$ to read z foll[s3 7,b7 r5d]s inve/m5t advice = a fee or o!r comp5sation1 direct or indirect1 ) respect to moneys or o!r prop]ty ( su* plan1 or has any au?ority or responsibility to d s4 ,inve/m5t advice means a recomm5dation-- 7i7 z to ! advisability ( acquir+1 hold+1 dispos+1 or ex*ang+ securities or o!r inve/m5t prop]ty1 includ+ a recomm5dation to take a di/ribution ( b5efits or a recomm5dation z to ! inve/m5t ( securities or o!r prop]ty to be roll$ ov] or o!rwise di/ribut$ f ! plan2 7ii7 z to ! managem5t ( securities or o!r prop]ty1 includ+ recomm5dations z to ! managem5t ( securities or o!r prop]ty to be roll$ ov] or o!rwise di/ribut$ f ! plan2 or 7iii7 ( a p]son :o is also go+ to receive a fee or o!r comp5sation = provid+ any ( ! types ( advice describ$ 9 clause 7i7 or 7ii72 ,provid$ t1 su* recomm5dation is r5d]$ pursuant to a mutual agreem5t1 arrangem5t1 or und]/&+ betwe5 su* p]son & ! plan1 plan fiduci>y1 or advice recipi5t t su* advice is individualiz$ to ! plan & su* plan1 fiduci>y1 or advice recipi5t int5ds to mat]ially rely on su* recomm5dation 9 mak+ inve/m5t or managem5t decisions ) respect to moneys1 securities1 or o!r inve/m5t prop]ty ( ! plan4 ,a p]son %all n be consid]$ to be provid+ inve/m5t advice if su* recomm5dation is provid$ 9 conjunction ) full & fair disclosure to ! recipi5t1 :i* c be writt5 or v]bal1 t ! p]son is provid+ or mak+ ! recomm5dation ( s]vices or prop]ty 9 its m>ket+1 sales1 or educational capacity1 & t ! p]son is n und]tak+ to provide imp>tial inve/m5t advice or to give advice z a fiduci>y 7)9 ! mean+ ( ?is subp>agraph74 ,9 addition1 a p]son %all n be a fiduci>y "u ?is subp>agraph ) respect to ! t]ms & conditions ( engagem5t ( ! p]son1 includ+ ! scope ( ! obligation to provide advice1 ! products or s]vices ) respect to :i* advice is provid$ & ! comp5sation payable to ! p]son1 provid$ ! recipi5t has cons5t$ to ! t]ms & conditions ( ! engagem5t aft] disclosure ( all mat]ial aspects ( su* t]ms & conditions1 includ+ fee disclosure t satisfies subclauses 7,i71 7,,ii71 & 7,,iii7 ( p>agraph 7#g77;,b77i74 ,except z o!rwise provid$ 9 subp>agraph 7,d7 & not)/&+ subp>agraph 7,e71 inve/m5t advice %all include a recomm5dation "u ?is subp>agraph provid$ pursuant to a writt5 ackn[l$gm5t ( fiduci>y /atus ) respect to ! provision ( su* recomm5dation4 ,= purposes ( ?is subp>agraph1 prop]ty means moneys & inve/m5t prop]ty1 & managem5t ( securities means ex]cis+ rights or obligations ) respect to securities or o!r prop]ty1 4 7#d7 ,def9ition ( inve/m5t advice ,section #dige7;e77#c7 ( su* ,code is am5d$ by /rik+ ! p]iod at ! end ( subp>agraph 7,c7 & ins]t+ a comma & by add+ ! foll[+ new subp>agraphs 7,d7 & 7,e73 7,d7 ,! ext5t ( a fiduci>y's obligations z su* c be def9$ & limit$ pursuant to a mutual agreem5t1 arrangem5t1 or und]/&+ betwe5 ! p]son & ! p>ty engag+ ! p]son z a fiduci>y to ! plan4 ,su* limitations c include limits on scope1 tim+1 & responsibility to provide ongo+ monitor+ or advice s]vices4 7,e7 ,a p]son %all n be deem$ to be a fiduci>y on acc\nt ( section #dige7;e77#c77;,b7 if su* p]son meets "o or m ( ! foll[+3 7i7 ,c\nt]p>ties & s]vices provid]s ,9 su* p]son's capacity z a c\nt]p>ty1 s]vice provid]1 or repres5tative !re(1 ! p]son provides advice to a plan fiduci>y :o is indep5d5t ( su* p]son & :o is indep5d5t ( ! plan sponsor1 ) respect to an arm's-l5g? s]vice arrangem5t1 sale1 pur*ase1 loan1 or bilat]al contract betwe5 ! plan & p]son1 ea* a transaction = purposes ( ?is subclause1 if1 prior to ent]+ into ! transaction1 ! plan fiduci>y repres5ts t x und]/&s t ! p]son has a f9ancial int]e/ 9 ! matt]1 & t ! p]son is n und]tak+ to provide imp>tial f9ancial advice or to give advice z a fiduci>y 7)9 ! mean+ ( ?is p>agraph72 provid$ su* p]son has n ackn[l$g$ 9 writ+ t x is act+ z a fiduci>y 7)9 ! mean+ ( ?is p>agraph7 ) respect to ! transaction4 7ii7 ,swap transactions ,! p]son is a c\nt]p>ty1 s]vice provid] or repres5tative !re( 9 connection ) a swap or security-bas$ swap1 z def9$ 9 section #a7;a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a7;a77 & section #c7;a7 ( ! ,securities ,ex*ange ,act 7#ae ,u4,s4,c4 #gh;c7a771 if3 ! plan is repres5t$ by a fiduci>y indep5d5t ( ! p]son2 ! p]son is a swap cle>+ firm or o!r s]vice provid] 9 relation to a swap1 swap deal]1 security-bas$ swap deal]1 major swap p>ticipant1 or major security-bas$ swap p>ticipant2 ! p]son 7if a swap deal]1 security-bas$ swap deal]1 cle>+ firm1 or o!r simil> s]vice provid]7 is n act+ z an advisor to ! plan 7)9 ! mean+ ( section #ds7h7 ( ! ,commodity ,ex*ange ,act or section #ae;,f7h7 ( ! ,securities ,ex*ange ,act ( #aicd7 9 connection ) ! transaction2 & 9 advance ( provid+ any recomm5dations ) respect to ! transaction1 ! p]son obta9s a writt5 repres5tation f ! indep5d5t plan fiduci>y1 t ! fiduci>y w n rely on recomm5dations provid$ by ! p]son4 7iii7 ,employees ,9 8 or h] capacity z an employee ( any employ] or employee organization sponsor+ ! plan or an affiliate ( su* plan sponsor1 ! p]son provides ! advice 7directly or indirectly7 to ! plan1 plan fiduci>y1 p>ticipant1 or b5efici>y1 & he or %e receives no fee or o!r comp5sation1 direct or indirect1 9 connection ) ! advice beyond ! employee's normal comp5sation = "w p]=m$ = ! employ] or employee organization or an affiliate4 ,9 su* cases1 su* an employee is n r5d]+ inve/m5t advice = a fee or o!r comp5sation4 ,no inf]5ce is int5d$ ) respect to :e!r any o!r p]son %all be treat$ z r5d]+ inve/m5t advice = a fee or o!r comp5sation4 7iv7 ,plat=m provid]s ,! p]son m]ely m>kets & makes available to a plan 7includ+ its p>ticipants1 b5efici>ies1 & fiduci>ies 7:i* includes an own] ( an individual retirem5t plan 7z def9$ 9 section #ggja7;a77#cg77771 )\t reg>d to ! individualiz$ ne$s ( ! plan1 its p>ticipants1 or b5efici>ies1 securities or o!r prop]ty ?r\gh a plat=m or simil> me*anism 7:i* may consi/ ( or include "o or m annuity contracts7 f :i* a plan fiduci>y may select or monitor inve/m5t alt]natives1 includ+ qualifi$ default inve/m5t alt]natives1 into :i* plan p>ticipants or b5efici>ies may direct ! inve/m5t ( assets held 91 or contribut$ to1 _! individual acc\nts1 if ! p]son discloses 9 writ+ to ! plan fiduci>y t ! p]son is n und]tak+ to provide imp>tial inve/m5t advice or to give advice z a fiduci>y 7)9 ! mean+ ( ?is p>agraph7 :5 e/abli%+ or ma9ta9+ ! plat=m4 7v7 ,selection & monitor+ assi/ance ,! p]son m]ely id5tifies inve/m5t alt]natives t meet objective crit]ia specifi$ by ! plan fiduci>y 7includ+ an own] ( an individual retirem5t plan 7z def9$ 9 section #ggja7;a77#cg7771 p>ticipant1 or b5efici>y 7e4g41 /at$ p>amet]s conc]n+ exp5se ratios1 size ( fund1 type ( asset1 or cr$it quality72 or m]ely provides objective f9ancial data & comp>isons ) indep5d5t b5*m>ks to ! plan fiduci>y1 p>ticipant or b5efici>y4 7vi7 ,f9ancial reports & valuations ,! p]son provides or reports valuation in=mation1 b does n repres5t 9 writ+ t x is und]tak+ to provide su* valuation in=mation z a fiduci>y 7)9 ! mean+ ( ?is subsection74 7vii7 ,education ,! p]son provides ! in=mation-- 7,i7 describ$ 9 ,dep>tm5t ( ,labor ,int]pretive ,bullet9 #if-a 7#bi ,c4,f4,r4 #beji4if-a1 z 9 effect on ,janu>y #a1 #bjae72 7,,ii7 describ$ 9 ,dep>tm5t ( ,labor ,int]pretive ,bullet9 #if-a 7#bi ,c4,f4,r4 #beji4if-a1 z 9 effect on ,janu>y #a1 #bjae7 b = ! fact t su* education is provid$ to a plan or plan fiduci>y2 7,,iii7 describ$ 9 ,dep>tm5t ( ,labor ,int]pretive ,bullet9 #if-a 7#bi ,c4,f4,r4 #beji4if-a1 z 9 effect on ,janu>y #a1 #bjae7 b = ! fact t su* education is provid$ to an own] ( an individual retirem5t plan 7z def9$ 9 section #ggja7;a77#cg772 7,,iv7 to p>ticipants & b5efici>ies reg>d+ ! factors to consid] 9 decid+ :e!r to elect to receive a di/ribution f a plan or an individual retirem5t plan 7z def9$ 9 section #ggja7;a77#cg77 & :e!r to roll ov] su* di/ribution to a plan or an individual retirem5t plan 7z def9$ 9 section #ggja7;a77#cg772 su* education c include examples ( diff]5t di/ribution & rollov] alt]natives1 s long z all mat]ial facts & assumptions on :i* ! examples are bas$ accompany ! examples2 or 7,v7 any additional in=mation treat$ z education by ! ,secret>y ( ,labor4 4 7#e7 ,exemption to pres]ve inve/or *oice ,section #dige7;d7 ( su* ,code is am5d$ by add+ at ! end !re( ! foll[+ new p>agraph3 7#bd7 ) respect to transactions describ$ 9 section #dige7;c77#a7 7,a7-7,f71 any transaction or s]vice 9 connection ) ! provision ( inve/m5t advice describ$ 9 section #dige7;e77#c77;,b7 if ! conditions "u subp>agraphs 7,a71 7,b71 & 7,c7 are satisfi$3 7,a7 ,! provision ( inve/m5t advice ) respect to ! transaction is subject to subsection 7c77#g7 or section #djd ( title ,i1 subtitle ,b ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7relat+ to fiduci>y obligations74 7,b7 ,! conditions ( section #dige7;d77#b7 are satisfi$ :5 o!rwise applicable4 7,c7 ,) respect to plans subject to section #djd ( title ,i1 subtitle ,b ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 ! inve/m5t advice may include recomm5dations t-- 7i7 are bas$ on a limit$ range ( products1 provid]s1 or (f]+s 7includ+ recomm5dations t include1 or are limit$ only to1 propriet>y products & provid]s71 :]e su* limits are cle>ly disclos$ to ! advice recipi5t at any "t prior to a transaction bas$ on ! recomm5dation1 or 7ii7 may result 9 v>iable comp5sation to ! p]son 7or its affiliate71 su* z transaction1 s]vices1 placem5t1 or o!r types ( comp5sation t diff] by product or s]vice1 :]e ! receipt ( su* comp5sation is cle>ly disclos$ to ! advice recipi5t4 7,d7 ,= purposes ( ?is p>agraph1 cle> disclosure ( v>iable comp5sation means notification at any "t prior to a transaction bas$ on ! p]son's recomm5dation1 9 a mann] calculat$ to be und]/ood by ! av]age individual1 ( ! foll[+ in=mation1 :i* c be provid$ 9 "o or m /atem5ts or docum5ts3 7i7 ,! p]son 7or its affiliate7 may receive v>y+ am\nts ( fees or o!r comp5sation or consid]ation ) respect to recomm5d$ transactions4 7ii7 ,! am\nt ( any fee or o!r comp5sation or consid]ation t is directly payable to ! p]son 7or its affiliate7 f ! plan or advice recipi5t ) respect to recomm5d$ transactions1 provid$ t any su* am\nt may be express$ 9 t]ms ( a monet>y am\nt1 =mula1 p]c5tage ( assets1 p] capita *>ge1 or e/imate or range ( su* comp5sation or consid]ation4 7iii7 ,a description ( ! types & ranges ( indirect comp5sation t may be paid to ! p]son 7or its affiliate7 by any ?ird p>ty 9 connection ) ! recomm5d$ transaction1 provid$ t any su* range may be express$ 9 t]ms ( a monet>y am\nt1 =mula1 p]c5tage ( assets1 p] capita *>ge or e/imate ( su* comp5sation or consid]ation4 7iv7 ,^u ! advice recipi5t's reque/ prior to ! transaction1 a disclosure ( ! specific am\nts ( comp5sation describ$ 9 clause 7ii7 or 7iii7 t ! p]son w receive 9 connection ) ! p>ticul> transaction1 provid$ t any su* am\nts may be express$ 9 t]ms ( a monet>y am\nt1 =mula1 p]c5tage ( assets1 p] capita *>ge1 or e/imate ( su* comp5sation or consid]ation4 ,! disclosure requirem5ts describ$ 9 ?is subp>agraph w n fail to be met solely because ! p]son1 act+ 9 good fai? & ) reasonable dilig5ce1 makes an error or omission 9 disclos+ ! in=mation specifi$ 9 ?is subsection1 provid$ t ! p]son discloses ! correct in=mation to ! advice recipi5t z soon z practicable1 b n lat] ?an #cj days f ! date on :i* ! p]son kn[s ( su* error or omission4 4 7#f7 ,effective date ,! am5dm5ts made by ?is subsection %all apply on or aft] ! #a/ day ( ! #cf? mon? aft] ! date ( ! enactm5t ( ?is ,act1 b ! exemption add$ "u section #dige7;d77#bd7 ( su* ,code %all be available imm$iately ^u enactm5t ( ?is ,act = p]sons meet+ its conditions 7includ+ ! conditions ( a be/ int]e/ recomm5dation :i* may n be effective at su* "t74 ,! ,secret>y ( ,labor is prohibit$ f am5d+ any rules or adm9i/rative positions promulgat$ "u section #c7ba7 ( ,,erisa or section #dige7;e77#c7 ( su* ,code 7includ+ ,dep>tm5t ( ,labor ,int]pretive ,bullet9 #if-a 7#bi ,c4,f4,r4 #beji4if-a7 & ,dep>tm5t ( ,labor ,advisory ,op9ion #bjje-bc;,a7 prior to ! effective date ( ?is ,act1 & no su* rules or positions promulgat$ by ! ,secret>y ( ,labor prior to ! date ( ! enactm5t ( ?is ,act1 b n yet effective or applicable1 may become effective prior to ! effective date ( ?is ,act4 7#g7 ,gr&fa!r$ transactions & s]vices ,! am5dm5ts made to section #dige7;e77#c77;,b7 ( su* ,code by ?is ,act %all n apply to any s]vices if su* s]vices-- 7,a7 7 r5d]$ prior to ! effective date ( ?is ,act1 7,b7 relate to a transaction ent]$ into prior to ! effective date ( ?is ,act1 7,c7 7 paid = prior to ! effective date ( ?is ,act1 or 7,d7 are n describ$ 9 subp>agraph 7,a71 7,b71 or 7,c7 b ! p]son p]=m+ ! s]vices does n receive m comp5sation 7ei!r z a fix$ doll> am\nt or z a p]c5tage ( assets7 z a result ( ! s]vices ?an ! p]son is contractually eligible to receive = su* s]vices prior to ! effective date ( ?is ,act4 7b7 ,am5dm5ts to ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#a7 ,def9ition ( inve/m5t advice ,subp>agraph 7,a7 ( section #c7ba7 ( ! ,employee ,retirem5t ,security ,act ( #aigd is am5d$ by am5d+ clause 7ii7 to read z foll[s3 7ii7 r5d]s inve/m5t advice = a fee or o!r comp5sation1 direct or indirect1 ) respect to moneys or o!r prop]ty ( su* plan1 or has any au?ority or responsibility to d s4 ,inve/m5t advice means a recomm5dation-- 7,i7 z to ! advisability ( acquir+1 hold+1 dispos+1 or ex*ang+ securities or o!r inve/m5t prop]ty1 includ+ a recomm5dation to take a di/ribution ( b5efits or a recomm5dation z to ! inve/m5t ( securities or o!r prop]ty to be roll$ ov] or o!rwise di/ribut$ f ! plan2 7,,ii7 z to ! managem5t ( securities or o!r prop]ty1 includ+ recomm5dations z to ! managem5t ( securities or o!r prop]ty to be roll$ ov] or o!rwise di/ribut$ f ! plan2 or 7,,iii7 ( a p]son :o is also go+ to receive a fee or o!r comp5sation = provid+ any ( ! types ( advice describ$ 9 subclause 7,i7 or 7,,ii72 ,provid$ t1 su* recomm5dation is r5d]$ pursuant to a mutual agreem5t1 arrangem5t1 or und]/&+ betwe5 su* p]son & ! plan1 plan fiduci>y1 or advice recipi5t t su* advice is individualiz$ to ! plan & su* plan1 fiduci>y1 or advice recipi5t int5ds to mat]ially rely on su* recomm5dation 9 mak+ inve/m5t or managem5t decisions ) respect to moneys1 securities1 or o!r inve/m5t prop]ty ( ! plan4 ,a p]son %all n be consid]$ to be provid+ inve/m5t advice if su* recomm5dation is provid$ 9 conjunction ) full & fair disclosure to ! recipi5t1 :i* c be writt5 or v]bal1 t ! p]son is provid+ or mak+ ! recomm5dation ( s]vices or prop]ty 9 its m>ket+1 sales1 or educational capacity1 & t ! p]son is n und]tak+ to provide imp>tial inve/m5t advice or to give advice z a fiduci>y 7)9 ! mean+ ( ?is subp>agraph74 ,9 addition1 a p]son %all n be a fiduci>y "u ?is subp>agraph ) respect to ! t]ms & conditions ( engagem5t ( ! p]son1 includ+ ! scope ( ! obligation to provide advice1 ! products or s]vices ) respect to :i* advice is provid$ & ! comp5sation payable to ! p]son1 provid$ ! recipi5t has cons5t$ to ! t]ms & conditions ( ! engagem5t aft] disclosure ( all mat]ial aspects ( su* t]ms & conditions1 includ+ fee disclosure t satisfies clauses 7i71 7ii71 & 7iii7 ( section #djh7;b77#ba77;,c74 ,except z o!rwise provid$ 9 subp>agraph 7,c7 & not)/&+ subp>agraph 7,d71 inve/m5t advice %all include a recomm5dation "u ?is subp>agraph provid$ pursuant to a writt5 ackn[l$gm5t ( fiduci>y /atus ) respect to ! provision ( su* recomm5dation4 ,= purposes ( ?is clause1 prop]ty means moneys & inve/m5t prop]ty1 & managem5t ( securities means ex]cis+ rights or obligations ) respect to securities or o!r prop]ty4 4 7#b7 ,def9ition ( inve/m5t advice ,subsection #c7ba7 ( su* ,act is am5d$ by add+ ! foll[+ new subp>agraphs 7,c7 & 7,d73 7,c7 ,! ext5t ( a fiduci>y's obligations z su* c be def9$ & limit$ pursuant to a mutual agreem5t1 arrangem5t1 or und]/&+ betwe5 ! p]son & ! p>ty engag+ ! p]son z a fiduci>y to ! plan4 ,su* limitations c include limits on scope1 tim+1 & responsibility to provide ongo+ monitor+ or advice s]vices4 7,d7 ,a p]son %all n be deem$ to be a fiduci>y on acc\nt ( subp>agraph 7,a77ii7 if su* p]son meets "o or m ( ! foll[+3 7i7 ,c\nt]p>ties & s]vices provid]s ,9 su* p]son's capacity z a c\nt]p>ty1 s]vice provid]1 or repres5tative !re(1 ! p]son provides advice to a plan fiduci>y :o is indep5d5t ( su* p]son & :o is indep5d5t ( ! plan sponsor1 ) respect to an arm's-l5g? s]vice arrangem5t1 sale1 pur*ase1 loan1 or bilat]al contract betwe5 ! plan & p]son1 ea* a transaction = purposes ( ?is clause if1 prior to ent]+ into ! transaction1 ! plan fiduci>y repres5ts t x und]/&s t ! p]son has a f9ancial int]e/ 9 ! matt]1 & t ! p]son is n und]tak+ to provide imp>tial f9ancial advice or to give advice z a fiduci>y 7)9 ! mean+ ( ?is subsection72 provid$ su* p]son has n ackn[l$g$ 9 writ+ t x is act+ z a fiduci>y 7)9 ! mean+ ( ?is subsection7 ) respect to ! transaction4 7ii7 ,swap transactions ,! p]son is a c\nt]p>ty1 s]vice provid] or repres5tative !re( 9 connection ) a swap or security-bas$ swap1 z def9$ 9 section #a7;a7 ( ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a7;a77 & section #c7;a7 ( ! ,securities ,ex*ange ,act 7#ae ,u4,s4,c4 #gh;c7a771 if3 ! plan is repres5t$ by a fiduci>y indep5d5t ( ! p]son2 ! p]son is a swap cle>+ firm or o!r s]vice provid] 9 relation to a swap1 swap deal]1 security-bas$ swap deal]1 major swap p>ticipant1 or major security-bas$ swap p>ticipant2 ! p]son 7if a swap deal]1 security-bas$ swap deal]1 cle>+ firm1 or o!r simil> s]vice provid]7 is n act+ z an advisor to ! plan 7)9 ! mean+ ( section #ds7h7 ( ! ,commodity ,ex*ange ,act or section #ae;,f7h7 ( ! ,securities ,ex*ange ,act ( #aicd7 9 connection ) ! transaction2 & 9 advance ( provid+ any recomm5dations ) respect to ! transaction1 ! p]son obta9s a writt5 repres5tation f ! indep5d5t plan fiduci>y1 t ! fiduci>y w n rely on recomm5dations provid$ by ! p]son4 7iii7 ,employees ,9 8 or h] capacity z an employee ( any employ] or employee organization sponsor+ ! plan or an affiliate ( su* plan sponsor1 ! p]son provides ! advice 7directly or indirectly7 to ! plan1 plan fiduci>y1 p>ticipant1 or b5efici>y1 & he or %e receives no fee or o!r comp5sation1 direct or indirect1 9 connection ) ! advice beyond ! employee's normal comp5sation = "w p]=m$ = ! employ] or employee organization or an affiliate4 ,9 su* cases1 su* an employee is n r5d]+ inve/m5t advice = a fee or o!r comp5sation4 ,no inf]5ce is int5d$ ) respect to :e!r any o!r p]son %all be treat$ z r5d]+ inve/m5t advice = a fee or o!r comp5sation4 7iv7 ,plat=m provid]s ,! p]son m]ely m>kets & makes available to a plan 7includ+ its p>ticipants1 b5efici>ies1 & fiduci>ies71 )\t reg>d to ! individualiz$ ne$s ( ! plan1 its p>ticipants1 or b5efici>ies1 securities or o!r prop]ty ?r\gh a plat=m or simil> me*anism 7:i* may consi/ ( or include "o or m annuity contracts7 f :i* a plan fiduci>y may select or monitor inve/m5t alt]natives1 includ+ qualifi$ default inve/m5t alt]natives1 into :i* plan p>ticipants or b5efici>ies may direct ! inve/m5t ( assets held 91 or contribut$ to1 _! individual acc\nts1 if ! p]son discloses 9 writ+ to ! plan fiduci>y t ! p]son is n und]tak+ to provide imp>tial inve/m5t advice or to give advice z a fiduci>y 7)9 ! mean+ ( ?is subsection7 :5 e/abli%+ or ma9ta9+ ! plat=m4 7v7 ,selection & monitor+ assi/ance ,! p]son m]ely id5tifies inve/m5t alt]natives t meet objective crit]ia specifi$ by ! plan fiduci>y1 p>ticipant1 or b5efici>y 7e4g41 /at$ p>amet]s conc]n+ exp5se ratios1 size ( fund1 type ( asset1 or cr$it quality72 or m]ely provides objective f9ancial data & comp>isons ) indep5d5t b5*m>ks to ! plan fiduci>y1 p>ticipant or b5efici>y4 7vi7 ,f9ancial reports & valuations ,! p]son provides or reports valuation in=mation1 b does n repres5t 9 writ+ t x is und]tak+ to provide su* valuation in=mation z a fiduci>y 7)9 ! mean+ ( ?is subsection74 7vii7 ,education ,! p]son provides ! in=mation-- 7,i7 describ$ 9 ,dep>tm5t ( ,labor ,int]pretive ,bullet9 #if-a 7#bi ,c4,f4,r4 #beji4if-a1 z 9 effect on ,janu>y #a1 #bjae72 7,,ii7 describ$ 9 ,dep>tm5t ( ,labor ,int]pretive ,bullet9 #if-a 7#bi ,c4,f4,r4 #beji4if-a1 z 9 effect on ,janu>y #a1 #bjae7 b = ! fact t su* education is provid$ to a plan or plan fiduci>y2 7,,iii7 to p>ticipants & b5efici>ies reg>d+ ! factors to consid] 9 decid+ :e!r to elect to receive a di/ribution f a plan or an individual retirem5t plan 7z def9$ 9 section #ggja7;a77#cg7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 & :e!r to roll ov] su* di/ribution to a plan or an individual retirem5t plan 7z def9$ 9 section #ggja7;a77#cg7 ( ! ,int]nal ,rev5ue ,code ( #aihf72 su* education c include examples ( diff]5t di/ribution & rollov] alt]natives1 s long z all mat]ial facts & assumptions on :i* ! examples are bas$ accompany ! examples2 or 7,,iv7 any additional in=mation treat$ z education by ! ,secret>y4 4 7#c7 ,exemption to pres]ve inve/or *oice ,section #djh7;b7 ( su* ,act is am5d$ by add+ at ! end !re( ! foll[+ new p>agraph3 7#ba7 ) respect to transactions describ$ 9 sections #djf7;a7 & #djf7;b71 any transaction or s]vice 9 connection ) ! provision ( inve/m5t advice describ$ 9 section #c7ba77;,a77ii7 if ! conditions "u subp>agraphs 7,a71 7,b71 & 7,c7 are satisfi$3 7,a7 ,! provision ( inve/m5t advice ) respect to ! transaction is subject to section #djd4 7,b7 ,! conditions ( section #djh7;b77#b7 are satisfi$ :5 o!rwise applicable4 7,c7 ,! inve/m5t advice may include recomm5dations t-- 7i7 are bas$ on a limit$ range ( products1 provid]s1 or (f]+s 7includ+ recomm5dations t include1 or are limit$ only to1 propriet>y products & provid]s71 :]e su* limits are cle>ly disclos$ to ! advice recipi5t at any "t prior to a transaction bas$ on ! recomm5dation1 or 7ii7 may result 9 v>iable comp5sation to ! p]son 7or its affiliate71 su* z transaction1 s]vices1 placem5t1 or o!r types ( comp5sation t diff] by product or s]vice1 :]e ! receipt ( su* comp5sation is cle>ly disclos$ to ! advice recipi5t4 7,d7 ,= purposes ( ?is p>agraph1 cle> disclosure ( v>iable comp5sation means notification at any "t prior to a transaction bas$ on ! p]son's recomm5dation1 9 a mann] calculat$ to be und]/ood by ! av]age individual1 ( ! foll[+ in=mation1 :i* c be provid$ 9 "o or m /atem5ts or docum5ts3 7i7 ,! p]son 7or its affiliate7 may receive v>y+ am\nts ( fees or o!r comp5sation or consid]ation ) respect to recomm5d$ transactions4 7ii7 ,! am\nt ( any fee or o!r comp5sation or consid]ation t is directly payable to ! p]son 7or its affiliate7 f ! plan or advice recipi5t ) respect to recomm5d$ transactions1 provid$ t any su* am\nt may be express$ 9 t]ms ( a monet>y am\nt1 =mula1 p]c5tage ( assets1 p] capita *>ge1 or e/imate or range ( su* comp5sation or consid]ation4 7iii7 ,a description ( ! types & ranges ( indirect comp5sation t may be paid to ! p]son 7or its affiliate7 by any ?ird p>ty 9 connection ) ! recomm5d$ transaction1 provid$ t any su* ranges may be express$ 9 t]ms ( a monet>y am\nt1 =mula1 p]c5tage ( assets1 p] capita *>ge or e/imate ( su* comp5sation or consid]ation4 7iv7 ,^u ! advice recipi5t's reque/ prior to ! transaction1 a disclosure ( ! specific am\nts ( comp5sation describ$ 9 clauses 7ii7 & 7iii7 t ! p]son w receive 9 connection ) ! p>ticul> transaction1 provid$ t any su* am\nts may be express$ 9 t]ms ( a monet>y am\nt1 =mula1 p]c5tage ( assets1 p] capita *>ge1 or e/imate ( su* comp5sation or consid]ation4 ,! disclosure requirem5ts describ$ 9 ?is p>agraph w n fail to be met solely because ! p]son1 act+ 9 good fai? & ) reasonable dilig5ce1 makes an error or omission 9 disclos+ ! in=mation specifi$ 9 ?is subsection1 provid$ t ! p]son discloses ! correct in=mation to ! advice recipi5t z soon z practicable1 b n lat] ?an #cj days f ! date on :i* ! p]son kn[s ( su* error or omission4 4 7#d7 ,effective date ,! am5dm5ts made by ?is subsection %all apply on or aft] ! #a/ day ( ! #cf? mon? aft] ! date ( ! enactm5t ( ?is ,act1 b ! exemption add$ "u section #djh7;b77#ba7 ( ! ,employee ,retirem5t ,security ,act ( #aigd %all be available imm$iately ^u enactm5t ( ?is ,act = p]sons meet+ its conditions 7includ+ ! conditions ( a be/ int]e/ recomm5dation :i* may n be effective at su* "t74 ,! ,secret>y ( ,labor is prohibit$ f am5d+ any rules or adm9i/rative positions promulgat$ "u section #c7ba7 ( ,,erisa or section #dige7;e77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7includ+ ,dep>tm5t ( ,labor ,int]pretive ,bullet9 #if-a 7#bi ,c4,f4,r4 #beji4if-a7 & ,dep>tm5t ( ,labor ,advisory ,op9ion #bjje-bc;,a7 prior to ! effective date ( ?is ,act1 & no su* rules or positions promulgat$ by ! ,secret>y ( ,labor prior to ! date ( ! enactm5t ( ?is ,act1 b n yet effective or applicable1 may become effective prior to ! effective date ( ?is ,act4 7#e7 ,gr&fa!r$ transactions & s]vices ,! am5dm5ts made to section #c7ba77;,a77ii7 by ?is ,act %all n apply to any s]vices if su* s]vices-- 7,a7 7 r5d]$ prior to ! effective date ( ?is ,act1 7,b7 relate to a transaction ent]$ into prior to ! effective date ( ?is ,act1 7,c7 7 paid = prior to ! effective date ( ?is ,act1 or 7,d7 are n describ$ 9 subp>agraph 7,a71 7,b71 or 7,c7 b ! p]son p]=m+ ! s]vices does n receive m comp5sation 7ei!r z a fix$ doll> am\nt or z a p]c5tage ( assets7 z a result ( ! s]vices ?an ! p]son is contractually eligible to receive = su* s]vices prior to ! effective date ( ?is ,act4 #d4 ,regulations ,! ,secret>y ( ! ,treasury & ! ,secret>y ( ,labor %all make rules1 9 accordance ) sub*apt] ,,ii ( *apt] #e ( title #e1 ,unit$ ,/ates ,code1 to c>ry out ?is ,act & ! am5dm5ts made by ?is ,act4