II 

108TH CONGRESS 

1ST SESSION S. 1698

To amend title I of the Employee Retirement Income Security Act of 1974 

and the Internal Revenue Code of 1986 to promote the provision of 

retirement investment advice to workers managing their retirement income assets. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 1, 2003

Mr. ENZI (for himself, Mr. GREGG, Mr. BOND, and Mr. SANTORUM) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL

To amend title I of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 

1986 to promote the provision of retirement investment 

advice to workers managing their retirement income assets.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 This Act may be cited as the ‘‘Retirement Security 

5 Advice Act of 2003’’. 
2

•S 1698 IS 

1 SEC. 2. PROHIBITED TRANSACTION EXEMPTION FOR THE 

2 PROVISION OF INVESTMENT ADVICE. 

3 (a) AMENDMENTS TO THE EMPLOYEE RETIREMENT

4 INCOME SECURITY ACT OF 1974.—

5 (1) EXEMPTION FROM PROHIBITED TRANS6 ACTIONS.—Section 408(b) of the Employee Retire7 ment Income Security Act of 1974 (29 U.S.C. 

8 1108(b)) is amended by adding at the end the fol9 lowing new paragraph: 

10 ‘‘(14)(A) Any transaction described in subpara11 graph (B) in connection with the provision of invest12 ment advice described in section 3(21)(A)(ii), in any 

13 case in which—

14 ‘‘(i) the investment of assets of the plan is 

15 subject to the direction of plan participants or 

16 beneficiaries, 

17 ‘‘(ii) the advice is provided to the plan or 

18 a participant or beneficiary of the plan by a fi19 duciary adviser in connection with any sale, ac20 quisition, or holding of a security or other prop21 erty for purposes of investment of plan assets, 

22 and 

23 ‘‘(iii) the requirements of subsection (g) 

24 are met in connection with the provision of the 

25 advice. 
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•S 1698 IS 

1 ‘‘(B) The transactions described in this sub2 paragraph are the following: 

3 ‘‘(i) the provision of the advice to the plan, 

4 participant, or beneficiary; 

5 ‘‘(ii) the sale, acquisition, or holding of a 

6 security or other property (including any lend7 ing of money or other extension of credit associ8 ated with the sale, acquisition, or holding of a 

9 security or other property) pursuant to the ad10 vice; and

11 ‘‘(iii) the direct or indirect receipt of fees 

12 or other compensation by the fiduciary adviser 

13 or an affiliate thereof (or any employee, agent, 

14 or registered representative of the fiduciary ad15 viser or affiliate) in connection with the provi16 sion of the advice or in connection with a sale, 

17 acquisition, or holding of a security or other 

18 property pursuant to the advice.’’. 

19 (2) REQUIREMENTS.—Section 408 of such Act 

20 is amended further by adding at the end the fol21 lowing new subsection: 

22 ‘‘(g) REQUIREMENTS RELATING TO PROVISION OF

23 INVESTMENT ADVICE BY FIDUCIARY ADVISERS.—

24 ‘‘(1) IN GENERAL.—The requirements of this 

25 subsection are met in connection with the provision 
4

•S 1698 IS 

1 of investment advice referred to in section 

2 3(21)(A)(ii), provided to an employee benefit plan or 

3 a participant or beneficiary of an employee benefit 

4 plan by a fiduciary adviser with respect to the plan 

5 in connection with any sale, acquisition, or holding 

6 of a security or other property for purposes of in7 vestment of amounts held by the plan, if—

8 ‘‘(A) in the case of the initial provision of 

9 the advice with regard to the security or other 

10 property by the fiduciary adviser to the plan, 

11 participant, or beneficiary, the fiduciary adviser 

12 provides to the recipient of the advice, at a time 

13 reasonably contemporaneous with the initial 

14 provision of the advice, a written notification 

15 (which may consist of notification by means of 

16 electronic communication)—

17 ‘‘(i) of all fees or other compensation 

18 relating to the advice that the fiduciary ad19 viser or any affiliate thereof is to receive 

20 (including compensation provided by any 

21 third party) in connection with the provi22 sion of the advice or in connection with the 

23 sale, acquisition, or holding of the security 

24 or other property, 
5

•S 1698 IS 

1 ‘‘(ii) of any material affiliation or con2 tractual relationship of the fiduciary ad3 viser or affiliates thereof in the security or 

4 other property, 

5 ‘‘(iii) of any limitation placed on the 

6 scope of the investment advice to be pro7 vided by the fiduciary adviser with respect 

8 to any such sale, acquisition, or holding of 

9 a security or other property, 

10 ‘‘(iv) of the types of services provided 

11 by the fiduciary adviser in connection with 

12 the provision of investment advice by the 

13 fiduciary adviser, 

14 ‘‘(v) that the adviser is acting as a fi15 duciary of the plan in connection with the 

16 provision of the advice, and 

17 ‘‘(vi) that a recipient of the advice 

18 may separately arrange for the provision of 

19 advice by another adviser, that could have 

20 no material affiliation with and receive no 

21 fees or other compensation in connection 

22 with the security or other property, 

23 ‘‘(B) the fiduciary adviser provides appro24 priate disclosure, in connection with the sale, 

25 acquisition, or holding of the security or other
6

•S 1698 IS 

1 property, in accordance with all applicable secu2 rities laws, 

3 ‘‘(C) the sale, acquisition, or holding oc4 curs solely at the direction of the recipient of 

5 the advice, 

6 ‘‘(D) the compensation received by the fi7 duciary adviser and affiliates thereof in connec8 tion with the sale, acquisition, or holding of the 

9 security or other property is reasonable, and 

10 ‘‘(E) the terms of the sale, acquisition, or 

11 holding of the security or other property are at 

12 least as favorable to the plan as an arm’s 

13 length transaction would be. 

14 ‘‘(2) STANDARDS FOR PRESENTATION OF IN15 FORMATION.—

16 ‘‘(A) IN GENERAL.—The notification re17 quired to be provided to participants and bene18 ficiaries under paragraph (1)(A) shall be writ19 ten in a clear and conspicuous manner and in 

20 a manner calculated to be understood by the av21 erage plan participant and shall be sufficiently 

22 accurate and comprehensive to reasonably ap23 prise such participants and beneficiaries of the 

24 information required to be provided in the noti25 fication. 
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•S 1698 IS 

1 ‘‘(B) MODEL FORM FOR DISCLOSURE OF

2 FEES AND OTHER COMPENSATION.—The Sec3 retary shall issue a model form for the disclo4 sure of fees and other compensation required in 

5 paragraph (1)(A)(i) which meets the require6 ments of subparagraph (A). 

7 ‘‘(3) EXEMPTION CONDITIONED ON MAKING RE8 QUIRED INFORMATION AVAILABLE ANNUALLY, ON

9 REQUEST, AND IN THE EVENT OF MATERIAL

10 CHANGE.—The requirements of paragraph (1)(A) 

11 shall be deemed not to have been met in connection 

12 with the initial or any subsequent provision of advice 

13 described in paragraph (1) to the plan, participant, 

14 or beneficiary if, at any time during the provision of 

15 advisory services to the plan, participant, or bene16 ficiary, the fiduciary adviser fails to maintain the in17 formation described in clauses (i) through (iv) of 

18 paragraph (1)(A) in currently accurate form and in 

19 the manner described in paragraph (2) or fails—

20 ‘‘(A) to provide, without charge, such cur21 rently accurate information to the recipient of 

22 the advice no less than annually, 

23 ‘‘(B) to make such currently accurate in24 formation available, upon request and without 

25 charge, to the recipient of the advice, or 
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•S 1698 IS 

1 ‘‘(C) in the event of a material change to 

2 the information described in clauses (i) through 

3 (iv) of paragraph (1)(A), to provide, without 

4 charge, such currently accurate information to 

5 the recipient of the advice at a time reasonably 

6 contemporaneous to the material change in in7 formation. 

8 ‘‘(4) MAINTENANCE FOR 6 YEARS OF EVIDENCE

9 OF COMPLIANCE.—A fiduciary adviser referred to in 

10 paragraph (1) who has provided advice referred to in 

11 such paragraph shall, for a period of not less than 

12 6 years after the provision of the advice, maintain 

13 any records necessary for determining whether the 

14 requirements of the preceding provisions of this sub15 section and of subsection (b)(14) have been met. A 

16 transaction prohibited under section 406 shall not 

17 be considered to have occurred solely because the 

18 records are lost or destroyed prior to the end of the 

19 6-year period due to circumstances beyond the con20 trol of the fiduciary adviser. 

21 ‘‘(5) EXEMPTION FOR PLAN SPONSOR AND CER22 TAIN OTHER FIDUCIARIES.—

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B), a plan sponsor or other person who 

25 is a fiduciary (other than a fiduciary adviser) 
9

•S 1698 IS 

1 shall not be treated as failing to meet the re2 quirements of this part solely by reason of the 

3 provision of investment advice referred to in 

4 section 3(21)(A)(ii) (or solely by reason of con5 tracting for or otherwise arranging for the pro6 vision of the advice), if—

7 ‘‘(i) the advice is provided by a fidu8 ciary adviser pursuant to an arrangement 

9 between the plan sponsor or other fidu10 ciary and the fiduciary adviser for the pro11 vision by the fiduciary adviser of invest12 ment advice referred to in such section, 

13 ‘‘(ii) the terms of the arrangement re14 quire compliance by the fiduciary adviser 

15 with the requirements of this subsection, 

16 and 

17 ‘‘(iii) the terms of the arrangement 

18 include a written acknowledgment by the 

19 fiduciary adviser that the fiduciary adviser 

20 is a fiduciary of the plan with respect to 

21 the provision of the advice. 

22 ‘‘(B) CONTINUED DUTY OF PRUDENT SE23 LECTION OF ADVISER AND PERIODIC REVIEW.—

24 Nothing in subparagraph (A) shall be construed 

25 to exempt a plan sponsor or other person who 
10

•S 1698 IS 

1 is a fiduciary from any requirement of this part 

2 for the prudent selection and periodic review of 

3 a fiduciary adviser with whom the plan sponsor 

4 or other person enters into an arrangement for 

5 the provision of advice referred to in section 

6 3(21)(A)(ii). The plan sponsor or other person 

7 who is a fiduciary has no duty under this part 

8 to monitor the specific investment advice given 

9 by the fiduciary adviser to any particular recipi10 ent of the advice. 

11 ‘‘(C) AVAILABILITY OF PLAN ASSETS FOR

12 PAYMENT FOR ADVICE.—Nothing in this part 

13 shall be construed to preclude the use of plan 

14 assets to pay for reasonable expenses in pro15 viding investment advice referred to in section 

16 3(21)(A)(ii). 

17 ‘‘(6) DEFINITIONS.—For purposes of this sub18 section and subsection (b)(14)—

19 ‘‘(A) FIDUCIARY ADVISER.—The term ‘fi20 duciary adviser’ means, with respect to a plan, 

21 a person who is a fiduciary of the plan by rea22 son of the provision of investment advice by the 

23 person to the plan or to a participant or bene24 ficiary and who is—
11

•S 1698 IS 

1 ‘‘(i) registered as an investment ad2 viser under the Investment Advisers Act of 

3 1940 (15 U.S.C. 80b–1 et seq.) or under 

4 the laws of the State in which the fiduciary 

5 maintains its principal office and place of 

6 business, 

7 ‘‘(ii) a bank or similar financial insti8 tution referred to in section 408(b)(4) or a 

9 savings association (as defined in section 

10 3(b)(1) of the Federal Deposit Insurance 

11 Act (12 U.S.C. 1813(b)(1))), but only if 

12 the advice is provided through a trust de13 partment of the bank or similar financial 

14 institution or savings association which is 

15 subject to periodic examination and review 

16 by Federal or State banking authorities, 

17 ‘‘(iii) an insurance company qualified 

18 to do business under the laws of a State, 

19 ‘‘(iv) a person registered as a broker 

20 or dealer under the Securities Exchange 

21 Act of 1934 (15 U.S.C. 78a et seq.), 

22 ‘‘(v) an affiliate of a person described 

23 in any of clauses (i) through (iv), or 

24 ‘‘(vi) an employee, agent, or registered 

25 representative of a person described in any 
12

•S 1698 IS 

1 of clauses (i) through (v) who satisfies the 

2 requirements of applicable insurance, 

3 banking, and securities laws relating to the 

4 provision of the advice. 

5 ‘‘(B) AFFILIATE.—The term ‘affiliate’ of 

6 another entity means an affiliated person of the 

7 entity (as defined in section 2(a)(3) of the In8 vestment Company Act of 1940 (15 U.S.C. 

9 80a–(a)(3))). 

10 ‘‘(C) REGISTERED REPRESENTATIVE.—

11 The term ‘registered representative’ of another 

12 entity means a person described in section 

13 3(a)(18) of the Securities Exchange Act of 

14 1934 (15 U.S.C. 78c(a)(18)) (substituting the 

15 entity for the broker or dealer referred to in 

16 such section) or a person described in section 

17 202(a)(17) of the Investment Advisers Act of 

18 1940 (15 U.S.C. 80b–(a)(17)) (substituting the 

19 entity for the investment adviser referred to in 

20 such section).’’. 

21 (b) AMENDMENTS TO THE INTERNAL REVENUE

22 CODE OF 1986.—

23 (1) EXEMPTION FROM PROHIBITED TRANS24 ACTIONS.—Subsection (d) of section 4975 of the In-
13

•S 1698 IS 

1 ternal Revenue Code of 1986 (relating to exemptions 

2 from tax on prohibited transactions) is amended—

3 (A) in paragraph (14), by striking ‘‘or’’ at 

4 the end; 

5 (B) in paragraph (15), by striking the pe6 riod at the end and inserting ‘‘; or’’; and 

7 (C) by adding at the end the following new 

8 paragraph: 

9 ‘‘(16) any transaction described in subsection 

10 (f)(7)(A) in connection with the provision of invest11 ment advice described in subsection (e)(3)(B)(i), in 

12 any case in which—

13 ‘‘(A) the investment of assets of the plan 

14 is subject to the direction of plan participants 

15 or beneficiaries, 

16 ‘‘(B) the advice is provided to the plan or 

17 a participant or beneficiary of the plan by a fi18 duciary adviser in connection with any sale, ac19 quisition, or holding of a security or other prop20 erty for purposes of investment of plan assets, 

21 and 

22 ‘‘(C) the requirements of subsection 

23 (f)(7)(B) are met in connection with the provi24 sion of the advice.’’. 
14

•S 1698 IS 

1 (2) ALLOWED TRANSACTIONS AND REQUIRE2 MENTS.—Subsection (f) of such section 4975 (relat3 ing to other definitions and special rules) is amended 

4 by adding at the end the following new paragraph: 

5 ‘‘(7) PROVISIONS RELATING TO INVESTMENT

6 ADVICE PROVIDED BY FIDUCIARY ADVISERS.—

7 ‘‘(A) TRANSACTIONS ALLOWABLE IN CON8 NECTION WITH INVESTMENT ADVICE PROVIDED

9 BY FIDUCIARY ADVISERS.—The transactions re10 ferred to in subsection (d)(16), in connection 

11 with the provision of investment advice by a fi12 duciary adviser, are the following:

13 ‘‘(i) the provision of the advice to the 

14 plan, participant, or beneficiary; 

15 ‘‘(ii) the sale, acquisition, or holding 

16 of a security or other property (including 

17 any lending of money or other extension of 

18 credit associated with the sale, acquisition, 

19 or holding of a security or other property) 

20 pursuant to the advice; and 

21 ‘‘(iii) the direct or indirect receipt of 

22 fees or other compensation by the fiduciary 

23 adviser or an affiliate thereof (or any em24 ployee, agent, or registered representative 

25 of the fiduciary adviser or affiliate) in con-
15

•S 1698 IS 

1 nection with the provision of the advice or 

2 in connection with a sale, acquisition, or 

3 holding of a security or other property pur4 suant to the advice. 

5 ‘‘(B) REQUIREMENTS RELATING TO PROVI6 SION OF INVESTMENT ADVICE BY FIDUCIARY

7 ADVISERS.—The requirements of this subpara8 graph (referred to in subsection (d)(16)(C)) are 

9 met in connection with the provision of invest10 ment advice referred to in subsection (e)(3)(B), 

11 provided to a plan or a participant or bene12 ficiary of a plan by a fiduciary adviser with re13 spect to the plan in connection with any sale, 

14 acquisition, or holding of a security or other 

15 property for purposes of investment of amounts 

16 held by the plan, if—

17 ‘‘(i) in the case of the initial provision 

18 of the advice with regard to the security or 

19 other property by the fiduciary adviser to 

20 the plan, participant, or beneficiary, the fi21 duciary adviser provides to the recipient of 

22 the advice, at a time reasonably contem23 poraneous with the initial provision of the 

24 advice, a written notification (which may
16

•S 1698 IS 

1 consist of notification by means of elec2 tronic communication)—

3 ‘‘(I) of all fees or other com4 pensation relating to the advice that 

5 the fiduciary adviser or any affiliate 

6 thereof is to receive (including com7 pensation provided by any third 

8 party) in connection with the provi9 sion of the advice or in connection 

10 with the sale, acquisition, or holding 

11 of the security or other property, 

12 ‘‘(II) of any material affiliation 

13 or contractual relationship of the fidu14 ciary adviser or affiliates thereof in 

15 the security or other property, 

16 ‘‘(III) of any limitation placed on 

17 the scope of the investment advice to 

18 be provided by the fiduciary adviser 

19 with respect to any such sale, acquisi20 tion, or holding of a security or other 

21 property, 

22 ‘‘(IV) of the types of services 

23 provided by the fiduciary adviser in 

24 connection with the provision of in-
17

•S 1698 IS 

1 vestment advice by the fiduciary ad2 viser, 

3 ‘‘(V) that the adviser is acting as 

4 a fiduciary of the plan in connection 

5 with the provision of the advice, and 

6 ‘‘(VI) that a recipient of the ad7 vice may separately arrange for the 

8 provision of advice by another adviser, 

9 that could have no material affiliation 

10 with and receive no fees or other com11 pensation in connection with the secu12 rity or other property, 

13 ‘‘(ii) the fiduciary adviser provides ap14 propriate disclosure, in connection with the 

15 sale, acquisition, or holding of the security 

16 or other property, in accordance with all 

17 applicable securities laws, 

18 ‘‘(iii) the sale, acquisition, or holding 

19 occurs solely at the direction of the recipi20 ent of the advice, 

21 ‘‘(iv) the compensation received by the 

22 fiduciary adviser and affiliates thereof in 

23 connection with the sale, acquisition, or 

24 holding of the security or other property is 

25 reasonable, and 
18

•S 1698 IS 

1 ‘‘(v) the terms of the sale, acquisition, 

2 or holding of the security or other property 

3 are at least as favorable to the plan as an 

4 arm’s length transaction would be. 

5 ‘‘(C) STANDARDS FOR PRESENTATION OF

6 INFORMATION.—The notification required to be 

7 provided to participants and beneficiaries under 

8 subparagraph (B)(i) shall be written in a clear 

9 and conspicuous manner and in a manner cal10 culated to be understood by the average plan 

11 participant and shall be sufficiently accurate 

12 and comprehensive to reasonably apprise such 

13 participants and beneficiaries of the information 

14 required to be provided in the notification. 

15 ‘‘(D) EXEMPTION CONDITIONED ON MAK16 ING REQUIRED INFORMATION AVAILABLE ANNU17 ALLY, ON REQUEST, AND IN THE EVENT OF MA18 TERIAL CHANGE.—The requirements of sub19 paragraph (B)(i) shall be deemed not to have 

20 been met in connection with the initial or any 

21 subsequent provision of advice described in sub22 paragraph (B) to the plan, participant, or bene23 ficiary if, at any time during the provision of 

24 advisory services to the plan, participant, or 

25 beneficiary, the fiduciary adviser fails to main-
19

•S 1698 IS 

1 tain the information described in subclauses (I) 

2 through (IV) of subparagraph (B)(i) in cur3 rently accurate form and in the manner re4 quired by subparagraph (C), or fails—

5 ‘‘(i) to provide, without charge, such 

6 currently accurate information to the re7 cipient of the advice no less than annually, 

8 ‘‘(ii) to make such currently accurate 

9 information available, upon request and 

10 without charge, to the recipient of the ad11 vice, or 

12 ‘‘(iii) in the event of a material 

13 change to the information described in 

14 subclauses (I) through (IV) of subpara15 graph (B)(i), to provide, without charge, 

16 such currently accurate information to the 

17 recipient of the advice at a time reasonably 

18 contemporaneous to the material change in 

19 information. 

20 ‘‘(E) MAINTENANCE FOR 6 YEARS OF EVI21 DENCE OF COMPLIANCE.—A fiduciary adviser 

22 referred to in subparagraph (B) who has pro23 vided advice referred to in such subparagraph 

24 shall, for a period of not less than 6 years after 

25 the provision of the advice, maintain any
20

•S 1698 IS 

1 records necessary for determining whether the 

2 requirements of the preceding provisions of this 

3 paragraph and of subsection (d)(16) have been 

4 met. A transaction prohibited under subsection 

5 (c)(1) shall not be considered to have occurred 

6 solely because the records are lost or destroyed 

7 prior to the end of the 6-year period due to cir8 cumstances beyond the control of the fiduciary 

9 adviser. 

10 ‘‘(F) EXEMPTION FOR PLAN SPONSOR AND

11 CERTAIN OTHER FIDUCIARIES.—A plan sponsor 

12 or other person who is a fiduciary (other than 

13 a fiduciary adviser) shall not be treated as fail14 ing to meet the requirements of this section 

15 solely by reason of the provision of investment 

16 advice referred to in subsection (e)(3)(B) (or 

17 solely by reason of contracting for or otherwise 

18 arranging for the provision of the advice), if—

19 ‘‘(i) the advice is provided by a fidu20 ciary adviser pursuant to an arrangement 

21 between the plan sponsor or other fidu22 ciary and the fiduciary adviser for the pro23 vision by the fiduciary adviser of invest24 ment advice referred to in such section, 
21

•S 1698 IS 

1 ‘‘(ii) the terms of the arrangement re2 quire compliance by the fiduciary adviser 

3 with the requirements of this paragraph, 

4 ‘‘(iii) the terms of the arrangement 

5 include a written acknowledgment by the 

6 fiduciary adviser that the fiduciary adviser 

7 is a fiduciary of the plan with respect to 

8 the provision of the advice, and 

9 ‘‘(iv) the requirements of part 4 of 

10 subtitle B of title I of the Employee Re11 tirement Income Security Act of 1974 are 

12 met in connection with the provision of 

13 such advice. 

14 ‘‘(G) DEFINITIONS.—For purposes of this 

15 paragraph and subsection (d)(16)—

16 ‘‘(i) FIDUCIARY ADVISER.—The term 

17 ‘fiduciary adviser’ means, with respect to a 

18 plan, a person who is a fiduciary of the 

19 plan by reason of the provision of invest20 ment advice by the person to the plan or 

21 to a participant or beneficiary and who 

22 is—

23 ‘‘(I) registered as an investment 

24 adviser under the Investment Advisers 

25 Act of 1940 (15 U.S.C. 80b–1 et seq.) 
22

•S 1698 IS 

1 or under the laws of the State in 

2 which the fiduciary maintains its prin3 cipal office and place of business, 

4 ‘‘(II) a bank or similar financial 

5 institution referred to in subsection 

6 (d)(4) or a savings association (as de7 fined in section 3(b)(1) of the Federal 

8 Deposit Insurance Act (12 U.S.C. 

9 1813(b)(1))), but only if the advice is 

10 provided through a trust department 

11 of the bank or similar financial insti12 tution or savings association which is 

13 subject to periodic examination and 

14 review by Federal or State banking 

15 authorities, 

16 ‘‘(III) an insurance company 

17 qualified to do business under the 

18 laws of a State, 

19 ‘‘(IV) a person registered as a 

20 broker or dealer under the Securities 

21 Exchange Act of 1934 (15 U.S.C. 78a 

22 et seq.), 

23 ‘‘(V) an affiliate of a person de24 scribed in any of subclauses (I) 

25 through (IV), or 
23

•S 1698 IS 

1 ‘‘(VI) an employee, agent, or reg2 istered representative of a person de3 scribed in any of subclauses (I) 

4 through (V) who satisfies the require5 ments of applicable insurance, bank6 ing, and securities laws relating to the 

7 provision of the advice. 

8 ‘‘(ii) AFFILIATE.—The term ‘affiliate’ 

9 of another entity means an affiliated per10 son of the entity (as defined in section 

11 2(a)(3) of the Investment Company Act of 

12 1940 (15 U.S.C. 80a–(a)(3))). 

13 ‘‘(iii) REGISTERED REPRESENTA14 TIVE.—The term ‘registered representa15 tive’ of another entity means a person de16 scribed in section 3(a)(18) of the Securi17 ties Exchange Act of 1934 (15 U.S.C. 

18 78c(a)(18)) (substituting the entity for the 

19 broker or dealer referred to in such sec20 tion) or a person described in section 

21 202(a)(17) of the Investment Advisers Act 

22 of 1940 (15 U.S.C. 80b–(a)(17)) (sub23 stituting the entity for the investment ad24 viser referred to in such section).’’.

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