a plan or plan fiduciary or a participant or 
beneficiary; 
‘‘(bb) information provided to participants 
or beneficiaries regarding the factors to consider 
in deciding whether to elect to receive a distribu-
tion from a plan or an individual retirement 
plan (as defined in section 7701(a)(37) of the In-
ternal Revenue Code of 1986) and whether to roll 
over such distribution to a plan or an individual 
retirement 
plan 
(as 
defined 
in 
section 
7701(a)(37) of the Internal Revenue Code of 
1986), so long as any examples of different dis-
tribution alternatives are accompanied by all 
material facts and assumptions on which the ex-
amples are based; or 
‘‘(cc) any additional information treated as 
education by the Secretary.’’. 
(2) EXEMPTION RELATING TO INVESTMENT AD-
VICE.—Section 408(b) of the Employee Retirement 
Income Security Act of 1974 is amended by adding 
at the end the following: 
‘‘(21)(A) Any transaction, including a contract 
for service, between a person providing investment ad-
vice described in section 3(21)(A)(ii) and the advice 
recipient in connection with such investment advice, 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6203
E:\BILLS\H4293.RH
H4293
sradovich on DSK3TPTVN1PROD with BILLS
and any transaction consisting of the provision of 
such investment advice, if the following conditions are 
satisfied: 
‘‘(i) No more than reasonable compensation 
is paid (as determined under section 408(b)(2)) 
for such investment advice. 
‘‘(ii) If the investment advice is based on a 
limited range of investment options (which may 
consist, in whole or in part, of proprietary prod-
ucts), 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 following: ‘This rec-
ommendation is based on a limited range of in-
vestment options, and the same or similar in-
vestments may be available at a different cost 
(greater or lesser) from other sources.’. 
‘‘(iii) If the investment advice may result in 
variable compensation to the person providing 
the investment advice (or any affiliate of such 
person), the receipt of such compensation shall be 
clearly disclosed to the advice recipient prior to 
any transaction based on the investment advice. 
For purposes of this subparagraph, clear disclo-
sure of variable compensation shall include, in a 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6203
E:\BILLS\H4293.RH
H4293
sradovich on DSK3TPTVN1PROD with BILLS
manner calculated to be understood by the aver-
age individual, each of the following: 
‘‘(I) A notice that states only the fol-
lowing: ‘This recommendation may result 
in varying amounts of fees or other com-
pensation to the person providing the rec-
ommendation (or its affiliate), and the 
same or similar investments may be avail-
able at a different cost (greater or lesser) 
from other sources.’. Any regulations or ad-
ministrative guidance implementing this 
subclause may not require this notice to be 
updated more than annually. 
‘‘(II) A description of any fee or other 
compensation that is directly or indirectly 
payable to the person (or its affiliate) by 
the advice recipient with respect to such 
transaction (expressed as an amount, for-
mula, percentage of assets, per capita 
charge, or estimate or range of such com-
pensation). 
‘‘(III) A description of the types and 
ranges of any compensation that may be di-
rectly or indirectly payable to the person 
(or its affiliate) by any third party in con-
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6203
E:\BILLS\H4293.RH
H4293
sradovich on DSK3TPTVN1PROD with BILLS
nection with such transaction (expressed as 
an amount, formula, percentage of assets, 
per capita charge, or estimate or range of 
such compensation). 
‘‘(IV) Upon request of the advice re-
cipient, a disclosure of the specific amounts 
of compensation described in clause (iii) 
that the person will receive in connection 
with the particular transaction (expressed 
as an amount, formula, percentage of assets, 
per capita charge, or estimate of such com-
pensation). 
‘‘(B) No recommendation will fail to satisfy the 
conditions described in clauses (i) through (iii) of 
subparagraph (A) solely because the person, acting in 
good faith and with reasonable diligence, makes an 
error or omission in disclosing the information speci-
fied in such clauses, provided that the person discloses 
the correct information to the advice recipient as soon 
as practicable, but not later than 30 days from the 
date on which the person knows of such error or omis-
sion. 
‘‘(C) Any notice provided pursuant to a require-
ment under clause (ii) or clause (iii)(I) of subpara-
graph (A) shall have no effect on any other notice oth-
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H4293.RH
H4293
sradovich on DSK3TPTVN1PROD with BILLS
erwise required without regard to this title, and shall 
be provided in addition to, and not in lieu of, any 
other such notice. 
‘‘(D) For purposes of this paragraph, the term 
‘affiliate’ has the meaning given in subsection 
(g)(11)(B).’’. 
(b) EFFECTIVE DATE.— 
(1) MODIFICATION
OF
CERTAIN
RULES, AND 
RULES
AND
ADMINISTRATIVE
POSITIONS
PROMUL-
GATED BEFORE ENACTMENT BUT NOT EFFECTIVE ON 
JANUARY 1, 2015, PROHIBITED.—The Department of 
Labor is prohibited from amending any rules or ad-
ministrative positions promulgated under, or applica-
ble for purposes of, section 3(21) of the Employee Re-
tirement Income Security Act of 1974 (including De-
partment of Labor Interpretive Bulletin 96–1 (29 
C.F.R. 2509.96–1) and Department of Labor Advi-
sory Opinion 2005–23A), and no such rule or admin-
istrative position promulgated by the Department of 
Labor prior to the date of the enactment of this Act 
but not effective on January 1, 2015, may become ef-
fective unless a bill or joint resolution referred to in 
paragraph (3) is enacted as described in such para-
graph not later than 60 days after the date of the en-
actment of this Act. 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H4293.RH
H4293
sradovich on DSK3TPTVN1PROD with BILLS
(2) GENERAL
EFFECTIVE
DATE
OF
AMEND-
MENTS.—Except as provided in paragraph (3), the 
amendments made by subsection (a) of this section 
shall take effect on the 61st day after the date of the 
enactment of this Act and shall apply with respect to 
information provided or recommendations made on or 
after 2 years after the date of the enactment of this 
Act. 
(3) EXCEPTION.—If a bill or joint resolution is 
enacted prior to the 61st day after the date of the en-
actment of this Act that specifically approves any 
rules or administrative positions promulgated under, 
or applicable for purposes of, section 3(21) of the Em-
ployee Retirement Income Security Act of 1974 that 
are not in effect on January 1, 2015, the amendments 
made by subsection (a) of this section shall not take 
effect. 
(c) GRANDFATHERED
TRANSACTIONS
AND
SERV-
ICES.—The amendments made by subsection (a) shall not 
apply to any service or transaction rendered, entered into, 
or for which a person has been compensated prior to the 
date on which the amendments made by subsection (a) of 
this Act become effective under subsection (b)(2). 
(d) TRANSITION.—If the amendments made by sub-
section (a) of this section take effect, then nothing in this 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6203
E:\BILLS\H4293.RH
H4293
sradovich on DSK3TPTVN1PROD with BILLS
section shall be construed to prohibit the issuance of guid-
ance to carry out such amendments so long as such guid-
ance is necessary to implement such amendments. Until 
such time as regulations or other guidance are issued to 
carry out such amendments, a plan or a fiduciary shall 
be treated as meeting the requirements of such amendments 
if the plan or fiduciary, as the case may be, complies with 
a reasonable good faith interpretation of such amendments. 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6203
E:\BILLS\H4293.RH
H4293
sradovich on DSK3TPTVN1PROD with BILLS
Union Calendar No. 391 
114TH CONGRESS 
2D SESSION 
H. R. 4293 
[Report No. 114–511] 
A BILL 
To amend the Employee Retirement Income Secu-
rity Act of 1974 to ensure that retirement inves-
tors receive advice in their best interests, and for 
other purposes. 
APRIL 20, 2016 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
VerDate Sep 11 2014 
20:58 Apr 20, 2016
Jkt 059200
PO 00000
Frm 00016
Fmt 6651
Sfmt 6651
E:\BILLS\H4293.RH
H4293
sradovich on DSK3TPTVN1PROD with BILLS