,i #aagth ,,congress #b;d ,session ,h4 ,r4 #gaea ,,in ,,the ,,house ,,of ,,representatives ,march #ah1 #bjbb,mr4 ,barr 7for himself and ,mr4 ,allen7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,investment ,advisers ,act of #aidj and the ,employment ,retirement ,income ,security ,act of #aigd to specify that only pecuniary factors are to be taken into account in determining best interest1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,ensuring ,sound ,guidance ,act4 #b4 ,investment ,advisors ,act of #aidj amendment 7a7 ,in general ,section #baa7;g7 of the ,investment ,advisers ,act of #aidj 7#ae ,u4,s4,c4 #hj;b-#aa7;g77 is amended by adding at the end the following3 7#c7 ,best interest based on pecuniary factors ,for purposes of paragraph 7#a71 the best interest of a customer shall be determined using only pecuniary factors1 unless the customer specifically requests that non-pecuniary factors be considered4 4 7b7 ,rulemaking ,not later than the end of the #ab-month period beginning on the date of enactment of this ,act1 the ,securities and ,exchange ,commission shall revise or issue such rules as may be necessary to implement the amendment made by subsection 7a74 #c4 ,employee ,retirement ,income ,security ,act of #aigd amendment ,section #djd7;a7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aajd7;a77 is amended by adding at the end the following3 7#c7 ,interest based on pecuniary factors 7,a7 ,in general ,for purposes of paragraph 7#a71 a fiduciary of a plan shall be considered to act solely in the interest of the participants and beneficiaries of the plan with respect to a plan investment or investment course of action only if the fiduciary's action with respect to such investment is based only on pecuniary factors4 ,the fiduciary may not subordinate the interests of the participants and beneficiaries in their retirement income or financial benefits under the plan to other objectives and may not sacrifice investment return or take on additional investment risk to promote non-pecuniary benefits or goals4 ,the weight given to any pecuniary factor by a fiduciary should appropriately reflect a prudent assessment of the impact of such factor on risk-return4 7,b7 ,investment alternatives for participant-directed individual account plans ,in selecting investment options for a pension plan described in subsection 7c77#a77;,a71 a fiduciary is not prohibited from considering or including an investment option on the basis that such investment option promotes non-pecuniary benefits or goals1 provided that the fiduciary-- 7i7 satisfies the requirements of paragraph 7#a7 and subparagraph 7,a7 in considering or including any such investment option2 and 7ii7 does not consider or include such investment option as a default investment 7as defined in the regulations issued by the ,secretary under subsection 7c77#e77;,a771 or a component thereof4 7,c7 ,pecuniary factor defined ,for the purposes of this paragraph1 the term pecuniary factor means a factor that a fiduciary prudently determines is expected to have a material effect on the risk and return of an investment based on appropriate investment horizons consistent with the plan's investment objectives and the funding policy established pursuant to section #djb7;b77#a74 4 #d4 ,prohibition of rule related to fiduciary prudence and loyalty ,the ,secretary of ,labor may not finalize1 implement1 administer1 or enforce the proposed rule entitled 8,prudence and ,loyalty in ,selecting ,plan ,investments and ,exercising ,shareholder ,rights0 7#hf ,fed4 ,reg4 #egbgb7 and dated ,october #ad1 #bjba4