TION.—The Secretary shall issue a 
model form for the disclosure of fees 
and other compensation required in 
clause (vii)(I)(bb) which meets the re-
quirements of subclause (I). 
‘‘(x) MAINTENANCE FOR 6 YEARS OF 
EVIDENCE
OF
COMPLIANCE.—The require-
ments of this clause are met with respect to 
the program if the investment adviser who 
provides advice under the program main-
tains, for a period of not less than 6 years 
after the provision of the advice, any 
records necessary for determining whether 
the requirements of the preceding provisions 
of this subparagraph and of subsection 
(b)(14) have been met. A failure to meet the 
requirements of this clause shall not be con-
sidered to have occurred solely because the 
records are lost or destroyed prior to the end 
of the 6-year period due to circumstances 
beyond the control of the investment adviser. 
‘‘(D) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) AFFILIATE.—The term ‘affiliate’ 
means, in connection with any other person, 
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any person directly or indirectly (through 
one or more intermediaries) controlling, 
controlled by, or under common control 
with such other person, or any officer, direc-
tor, agent, or employee of, or partner with, 
such other person. 
‘‘(ii) 
REGISTERED
REPRESENTA-
TIVE.—The term ‘registered representative’ 
of another entity means a person described 
in section 3(a)(18) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78c(a)(18)) 
(substituting the entity for the broker or 
dealer referred to in such section) or a per-
son described in section 202(a)(17) of the 
Investment Advisers Act of 1940 (15 U.S.C. 
80b–2(a)(17)) (substituting the entity for 
the investment adviser referred to in such 
section). 
‘‘(iii) PLAN INVESTMENT PROVIDER.— 
The term ‘plan investment provider’ means 
any person (or any person affiliated with 
such person) that creates or manages any 
investment in which any individual ac-
count plan invests. Such term does not in-
clude— 
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‘‘(I) a plan sponsor (or an affil-
iate thereof) with respect to any invest-
ment created or managed by the plan 
sponsor (or affiliate), if only employee 
benefit plans maintained by such plan 
sponsor or an affiliate thereof invest in 
such investments, 
‘‘(II) any person who makes the 
investment available to the plan, or 
any participant or beneficiary in the 
plan, as a part of a portfolio of invest-
ment options, to the extent that the in-
vestment options are created and man-
aged by a person who is not an affil-
iate of the person making such port-
folio available, and 
‘‘(III) any person, solely by rea-
son of authorization by a participant 
or beneficiary in the plan of such per-
son to exercise control over the assets 
in the participant’s or beneficiary’s ac-
count in such plan, if such assets are 
not invested in any investments cre-
ated or managed by such person (or an 
affiliate thereof). 
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‘‘(iv) FEES
OR
OTHER
COMPENSA-
TION.—The term ‘fees or other compensa-
tion’ includes money or any other thing of 
monetary value (for example, gifts, awards, 
and trips) received, or to be received, di-
rectly from the plan or plan sponsor or in-
directly (i.e., from any source other than the 
plan or the plan sponsor) by the investment 
adviser or any affiliate thereof in connec-
tion with the advice to be provided pursu-
ant to the arrangement or because of the in-
vestment adviser’s or any affiliate’s position 
with the plan. Fees or other compensation 
may be expressed in terms of a monetary 
amount, percentage of the plan’s assets, or 
per capita charge for each participant or 
beneficiary of the plan. The manner in 
which compensation or fees are expressed 
shall contain sufficient information to en-
able the plan fiduciary to evaluate the rea-
sonableness of such compensation or fees.’’. 
(b) FIDUCIARY DUTIES WITH RESPECT TO INVEST-
MENT ADVICE.— 
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(1) IN GENERAL.—Section 404(a) of such Act 
(29 U.S.C. 1104(a)) is amended by adding at the end 
the following new paragraph: 
‘‘(3)(A) The fiduciary of an individual account plan 
that permits a participant or beneficiary to direct the in-
vestment of assets in the individual account shall not ap-
point, contract with, or otherwise arrange for an investment 
adviser to provide investment advice referred to in section 
3(21)(A)(ii) to the plan or the participant or beneficiary 
unless the investment adviser is an independent investment 
adviser (as defined in section 3(43)). 
‘‘(B) The independent investment adviser providing 
investment advice to a plan or to a participant or bene-
ficiary shall provide, before a reasonable period prior to the 
initial provision of the advice, a written notification— 
‘‘(i) of the past performance and historical rates 
of return of the investment options available with re-
spect to the plan and comparisons of such options to 
relevant benchmarks, and 
‘‘(ii) that the investment adviser is acting as a 
fiduciary of the plan in connection with the provision 
of the advice. 
‘‘(C) Nothing in this paragraph shall be construed to 
exempt a plan sponsor or other person who is a fiduciary 
from any requirement of this part for the prudent selection 
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and periodic review of an independent investment adviser 
with whom the plan sponsor or other person enters into an 
arrangement for the provision of investment advice referred 
to in section 3(21)(A)(ii), except that any such requirement 
shall not be construed to preclude reasonable reliance by the 
plan sponsor or other person on the representation of any 
person that such person making the representation meets 
the requirements of section 3(43)(A). The plan sponsor and 
any other person who is a fiduciary (other than the inde-
pendent investment adviser) has no duty under this part 
to monitor the specific investment advice given by the inde-
pendent investment adviser to any particular recipient of 
the advice and shall not be liable under this title for any 
loss, or by reason of any breach, which results from such 
specific investment advice given by the independent invest-
ment adviser. 
‘‘(D) Nothing in this part shall be construed to pre-
clude the use of plan assets to pay for reasonable expenses 
in providing investment advice referred to in section 
3(21)(A)(ii).’’. 
(2) REPORT ON PRIOR ADVISORY OPINIONS AND 
EXCEPTIONS.—The Secretary of Labor shall, as soon 
as practicable after the date of the enactment of this 
Act— 
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