,,ib  ,union ,calendar ,no4 #cia  #aadth
 ,,congress  #b;d ,session  ,h4 ,r4     
#dbic  ,report ,no4 #aad-eaa  ,,in ,,the
 ,,house ,,of ,,representatives         
,december #ah1 #bjae ,mr4 ,roe of       
,tennessee 7for himself1 ,mr4 ,neal1    
,mr4 ,roskam1 ,mr4 ,larson of           
,connecticut1 ,mr4 ,carter of ,georgia1 
and ,mr4 ,david ,scott of ,georgia7     
introduced the following bill2 which was
 referred to the ,committee on          
,education and the ,workforce  ,april   
#bj1 #bjaf ,additional sponsors3 ,ms4   
,michelle ,lujan ,grisham of ,new       
,mexico1 ,mr4 ,reed1 ,mr4 ,young of     
,indiana1 ,mr4 ,byrne1 ,mr4 ,boustany1  
,mr4 ,wilson of ,south ,carolina1 ,mr4  
,clay1 ,mr4 ,holding1 ,mr4 ,renacci1    
,ms4 ,jenkins of ,kansas1 ,mrs4         
,walorski1 ,mr4 ,mac,arthur1 ,mr4       
,paulsen1 ,mr4 ,ashford1 ,mr4 ,zinke1   
,mr4 ,duncan of ,tennessee1 ,mr4        
,thompson of ,pennsylvania1 ,mr4 ,gibbs1
 ,mr4 ,guthrie1 ,mr4 ,bishop of         
,michigan1 ,mr4 ,tiberi1 ,mr4 ,meehan1  

,mr4 ,nunes1 ,mr4 ,reichert1 ,mr4       
,allen1 ,mr4 ,barletta1 ,mr4 ,marchant1 
,mr4 ,olson1 ,mr4 ,cramer1 ,mr4 ,latta1 
,mr4 ,amodei1 ,mr4 ,gohmert1 and ,mr4   
,sessions  ,april #bj1 #bjaf ,reported  
with an amendment1 committed to the     
,committee of the ,whole ,house on the  
,state of the ,union1 and ordered to be 
printed ,strike out all after the       
enacting clause and insert the part     
printed in italic ,for text of          
introduced bill1 see copy of bill as    
introduced on ,december #ah1 #bjae  ,a  
,,bill  ,to amend the ,employee         
,retirement ,income ,security ,act of   
#aigd to ensure that retirement         
investors receive advice in their best  
interests1 and for other purposes4  #a4 
,short title ,this ,act may be cited as 
the ,affordable ,retirement ,advice     
,protection ,act4  #b4 ,purpose ,the    
purpose of this ,act is to provide that 
advisors who--  7#a7 provide advice that
 is impermissible under the prohibited  
transaction provisions under section    

#djf of the ,employee ,retirement       
,income ,security ,act of #aigd1 or     
7#b7 breach the best interest standard  
for the provision of investment advice1 
are subject to liability under the      
,employee ,retirement ,income ,security 
,act of #aigd4  #c4 ,rules relating to  
the provision of investment advice  7a7 
,amendments to the ,employee ,retirement
 ,income ,security ,act of #aigd  7#a7  
,definition of investment advice        
,section #c7ba7 of the ,employee        
,retirement ,income ,security ,act of   
#aigd 7#bi ,u4,s4,c4 #ajjb7ba77 is      
amended by adding at the end the        
following3  7,c7 7i7 ,for purposes of   
clause 7ii7 of subparagraph 7,a71 the   
term investment advice means a          
recommendation that--  7,i7 relates to--
 7aa7 the advisability of acquiring1    
holding1 disposing1 or exchanging any   
moneys or other property of a plan by   
the plan1 plan participants1 or plan    
beneficiaries1 including any            
recommendation whether to take a        

distribution of benefits from such plan 
or any recommendation relating to the   
investment of any moneys or other       
property of such plan to be distributed 
from such plan2  7bb7 the management of 
moneys or other property of such plan1  
including recommendations relating to   
the management of moneys or other       
property to be distributed from such    
plan2 or  7cc7 the advisability of      
retaining or ceasing to retain a person 
who would receive a fee or other        
compensation for providing any of the   
types of advice described in this       
subclause2 and  7,,ii7 is rendered      
pursuant to-- 7aa7 a written            
acknowledgment of the obligation of the 
advisor to comply with section #djd with
 respect to the provision of such       
recommendation2 or  7bb7 a mutual       
agreement1 arrangement1 or              
understanding1 which may include        
limitations on scope1 timing1 and       
responsibility to provide ongoing       
monitoring or advice services1 between  

the person making such recommendation   
and the plan that such recommendation is
 individualized to the plan and such    
plan intends to materially rely on such 
recommendation in making investment or  
management decisions with respect to any
 moneys or other property of such plan4 
7ii7 ,for purposes of clause            
7i77,,ii77bb71 any disclaimer of a      
mutual agreement1 arrangement1 or       
understanding shall only state the      
following3 ,this information is not     
individualized to you1 and you are not  
intended to materially rely on this     
information in making investment or     
management decisions44 ,such disclaimer 
shall not be effective unless such      
disclaimer is in writing and is         
communicated in a clear and prominent   
manner and an objective person would    
reasonably conclude that1 based on all  
the facts and circumstances1 there was  
not a mutual agreement1 arrangement1 or 
understanding4  7iii7 ,for purposes of  
clause 7i77,,ii77bb71 information shall 

not be considered to be a recommendation
 made pursuant to a mutual agreement1   
arrangement1 or understanding1 and such 
information shall contain the disclaimer
 required by clause 7ii71 if-- 7,i7 it  
is provided in conjunction with full and
 fair disclosure in writing to a plan1  
plan participant1 or beneficiary that   
the person providing the information is 
doing so in its marketing or sales      
capacity1 including any information     
regarding the terms and conditions of   
the engagement of the person providing  
the information1 and that the person is 
not intending to provide investment     
advice within the meaning of this       
subparagraph or to otherwise act within 
and under the obligations of the best   
interest standard as described in this  
subparagraph2  7,,ii7 the person        
providing the information is a          
counterparty or service provider to the 
plan in connection with any transaction 
based on the information 7including a   
service arrangement1 sale1 purchase1    

loan1 bilateral contract1 swap 7as      
defined in section #a;a of the          
,commodity ,exchange ,act 7#g ,u4,s4,c4 
#a;a771 or security-based swap 7as      
defined in section #c7;a7 of the        
,securities ,exchange ,act 7#ae         
,u4,s4,c4 #gh;c7a77771 but only if--    
7aa7 the plan is represented1 in        
connection with such transaction1 by a  
plan fiduciary that is independent of   
the person providing the information1   
and1 except in the case of a swap or    
security-based swap1 independent of the 
plan sponsor2 and  7bb7 prior to such   
transaction1 the independent plan       
fiduciary represents in writing to the  
person providing the information that it
 is aware that the person has a         
financial interest in the transaction   
and that it has determined that the     
person is not intending to provide      
investment advice within the meaning of 
this subparagraph or to otherwise act as
 a fiduciary to the plan subject to     
section #djd2  7,,iii7 the person       

providing the information is an employee
 of any sponsoring employer or employee 
organization who provides the           
information to the plan for no fee or   
other compensation other than the       
employee's normal compensation2  7,,iv7 
the person providing the information    
discloses in writing to the plan        
fiduciary that the person is not        
undertaking to provide investment advice
 as a fiduciary to the plan subject to  
section #djd and the information        
consists solely of-- 7aa7 making        
available to the plan1 without regard to
 the individualized needs of the plan1  
securities or other property through a  
platform or similar mechanism from which
 a plan fiduciary may select or monitor 
investment alternatives1 including      
qualified default investment            
alternatives1 into which plan           
participants or beneficiaries may direct
 the investment of assets held in1 or   
contributed to1 their individual        
accounts2 or  7bb7 in connection with a 

platform or similar mechanism described 
in item 7aa7-- 7,,aa7 identifying       
investment alternatives that meet       
objective criteria specified by the     
plan1 such as criteria concerning       
expense ratios1 fund sizes1 types of    
asset1 or credit quality2 or 7,,bb7     
providing objective financial data and  
comparisons with independent benchmarks 
to the plan2  7,v7 the information      
consists solely of valuation            
information2 or  7,,vi7 the information 
consists solely of-- 7aa7 information   
described in ,department of ,labor      
,interpretive ,bulletin #if-a 7#bi      
,c4,f4,r4 #beji4if-a1 as in effect on   
,january #a1 #bjae71 regardless of      
whether such education is provided to a 
plan or plan fiduciary or a participant 
or beneficiary2  7bb7 information       
provided to participants or             
beneficiaries regarding the factors to  
consider in deciding whether to elect to
 receive a distribution from a plan or  
an individual retirement plan 7as       

defined in section #ggja7;a77#cg7 of the
 ,internal ,revenue ,code of #aihf7 and 
whether to roll over such distribution  
to a plan or an individual retirement   
plan 7as defined in section             
#ggja7;a77#cg7 of the ,internal ,revenue
 ,code of #aihf71 so long as any        
examples of different distribution      
alternatives are accompanied by all     
material facts and assumptions on which 
the examples are based2 or  7cc7 any    
additional information treated as       
education by the ,secretary4  4  7#b7   
,exemption relating to investment advice
 ,section #djh7;b7 of the ,employee     
,retirement ,income ,security ,act of   
#aigd is amended by adding at the end   
the following3  7#ba7 7,a7 ,any         
transaction1 including a contract for   
service1 between a person providing     
investment advice described in section  
#c7ba77;,a77ii7 and the advice recipient
 in connection with such investment     
advice1 and any transaction consisting  
of the provision of such investment     

advice1 if the following conditions are 
satisfied3  7i7 ,no more than reasonable
 compensation is paid 7as determined    
under section #djh7;b77#b77 for such    
investment advice4  7ii7 ,if the        
investment advice is based on a limited 
range of investment options 7which may  
consist1 in whole or in part1 of        
proprietary products71 such limitations 
shall be clearly disclosed to the advice
 recipient prior to any transaction     
based on the investment advice in the   
form of a notice that only states the   
following3 ,this recommendation is based
 on a limited range of investment       
options1 and the same or similar        
investments may be available at a       
different cost 7greater or lesser7 from 
other sources44  7iii7 ,if the          
investment advice may result in variable
 compensation to the person providing   
the investment advice 7or any affiliate 
of such person71 the receipt of such    
compensation shall be clearly disclosed 
to the advice recipient prior to any    

transaction based on the investment     
advice4 ,for purposes of this           
subparagraph1 clear disclosure of       
variable compensation shall include1 in 
a manner calculated to be understood by 
the average individual1 each of the     
following3 7,i7 ,a notice that states   
only the following3 ,this recommendation
 may result in varying amounts of fees  
or other compensation to the person     
providing the recommendation 7or its    
affiliate71 and the same or similar     
investments may be available at a       
different cost 7greater or lesser7 from 
other sources44 ,any regulations or     
administrative guidance implementing    
this subclause may not require this     
notice to be updated more than annually4
  7,,ii7 ,a description of any fee or   
other compensation that is directly or  
indirectly payable to the person 7or its
 affiliate7 by the advice recipient with
 respect to such transaction 7expressed 
as an amount1 formula1 percentage of    
assets1 per capita charge1 or estimate  

or range of such compensation74  7,,iii7
 ,a description of the types and ranges 
of any compensation that may be directly
 or indirectly payable to the person 7or
 its affiliate7 by any third party in   
connection with such transaction        
7expressed as an amount1 formula1       
percentage of assets1 per capita charge1
 or estimate or range of such           
compensation74  7,,iv7 ,upon request of 
the advice recipient1 a disclosure of   
the specific amounts of compensation    
described in clause 7iii7 that the      
person will receive in connection with  
the particular transaction 7expressed as
 an amount1 formula1 percentage of      
assets1 per capita charge1 or estimate  
of such compensation74  7,b7 ,no        
recommendation will fail to satisfy the 
conditions described in clauses 7i7     
through 7iii7 of subparagraph 7,a7      
solely because the person1 acting in    
good faith and with reasonable          
diligence1 makes an error or omission in
 disclosing the information specified in

 such clauses1 provided that the person 
discloses the correct information to the
 advice recipient as soon as            
practicable1 but not later than #cj days
 from the date on which the person knows
 of such error or omission4  7,c7 ,any  
notice provided pursuant to a           
requirement under clause 7ii7 or clause 
7iii77,i7 of subparagraph 7,a7 shall    
have no effect on any other notice      
otherwise required without regard to    
this title1 and shall be provided in    
addition to1 and not in lieu of1 any    
other such notice4  7,d7 ,for purposes  
of this paragraph1 the term affiliate   
has the meaning given in subsection     
7g77#aa77;,b74  4  7b7 ,effective date  
7#a7 ,modification of certain rules1 and
 rules and administrative positions     
promulgated before enactment but not    
effective on ,january #a1 #bjae1        
prohibited ,the ,department of ,labor is
 prohibited from amending any rules or  
administrative positions promulgated    
under1 or applicable for purposes of1   

section #c7ba7 of the ,employee         
,retirement ,income ,security ,act of   
#aigd 7including ,department of ,labor  
,interpretive ,bulletin #if-a 7#bi      
,c4,f4,r4 #beji4if-a7 and ,department of
 ,labor ,advisory ,opinion #bjje-bc;,a71
 and no such rule or administrative     
position promulgated by the ,department 
of ,labor prior to the date of the      
enactment of this ,act but not effective
 on ,january #a1 #bjae1 may become      
effective unless a bill or joint        
resolution referred to in paragraph 7#c7
 is enacted as described in such        
paragraph not later than #fj days after 
the date of the enactment of this ,act4 
7#b7 ,general effective date of         
amendments ,except as provided in       
paragraph 7#c71 the amendments made by  
subsection 7a7 of this section shall    
take effect on the #fast day after the  
date of the enactment of this ,act and  
shall apply with respect to information 
provided or recommendations made on or  
after #b years after the date of the    

enactment of this ,act4  7#c7 ,exception
 ,if a bill or joint resolution is      
enacted prior to the #fast day after the
 date of the enactment of this ,act that
 specifically approves any rules or     
administrative positions promulgated    
under1 or applicable for purposes of1   
section #c7ba7 of the ,employee         
,retirement ,income ,security ,act of   
#aigd that are not in effect on ,january
 #a1 #bjae1 the amendments made by      
subsection 7a7 of this section shall not
 take effect4  7c7 ,grandfathered       
transactions and services ,the          
amendments made by subsection 7a7 shall 
not apply to any service or transaction 
rendered1 entered into1 or for which a  
person has been compensated prior to the
 date on which the amendments made by   
subsection 7a7 of this ,act become      
effective under subsection 7b77#b74  7d7
 ,transition ,if the amendments made by 
subsection 7a7 of this section take     
effect1 then nothing in this section    
shall be construed to prohibit the      

issuance of guidance to carry out such  
amendments so long as such guidance is  
necessary to implement such amendments4 
,until such time as regulations or other
 guidance are issued to carry out such  
amendments1 a plan or a fiduciary shall 
be treated as meeting the requirements  
of such amendments if the plan or       
fiduciary1 as the case may be1 complies 
with a reasonable good faith            
interpretation of such amendments4      
,april #bj1 #bjaf ,reported with an     
amendment1 committed to the ,committee  
of the ,whole ,house on the ,state of   
the ,union1 and ordered to be printed