320 
HR 2830 PCS 
‘‘(A) the transaction is executed through 
an exchange, electronic communication network, 
alternative trading system, or similar execution 
system or trading venue subject to regulation 
and oversight by— 
‘‘(i) the applicable Federal regulating 
entity, or 
‘‘(ii) such other applicable govern-
mental regulating agency as the Secretary 
may determine appropriate in the case of 
any fiduciary or party in interest or class 
of fiduciaries or parties in interest or any 
transaction or class of transactions, 
‘‘(B) neither the execution system nor the 
parties to the transaction take into account the 
identity of the parties in the execution of 
trades, 
‘‘(C) the transaction is effected pursuant 
to rules designed to match purchases and sales 
at the best price available through the execution 
system, 
‘‘(D) the price and compensation associ-
ated with the purchase and sale are not greater 
than an arm’s length transaction with an unre-
lated party,
321 
HR 2830 PCS 
‘‘(E) if the fiduciary or party in interest 
has an ownership interest in the system or 
venue described in subparagraph (A), the sys-
tem or venue has been authorized under the 
plan for transactions described in this para-
graph, and 
‘‘(F) not less than 30 days prior to the ini-
tial transaction described in this paragraph exe-
cuted through any system or venue described in 
subparagraph (A), the plan administrator is 
provided written notice of the execution of such 
transaction through such system or venue.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall take effect 30 days after the 
date of the enactment of this Act. 
(e) CONFORMING
ERISA’S PROHIBITED
TRANS-
ACTION PROVISION TO FERSA.—Section 408(b) of such 
Act (29 U.S.C. 1106), as amended by subsection (d), is 
further amended by adding at the end the following new 
paragraph: 
‘‘(17)(A) transactions described in subpara-
graphs (A), (B), and (D) of section 406(a)(1) be-
tween a plan and a party that is a party in interest 
(under section 3(14)) solely by reason of providing 
services, but only if in connection with such trans-
322 
HR 2830 PCS 
action the plan receives no less, nor pays no more, 
than adequate consideration. 
‘‘(B) For purposes of this paragraph, the term 
‘adequate consideration’ means— 
‘‘(i) in the case of a security for which 
there is a generally recognized market— 
‘‘(I) the price of the security pre-
vailing on a national securities exchange 
which is registered under section 6 of the 
Securities Exchange Act of 1934, taking 
into account factors such as the size of the 
transaction and marketability of the secu-
rity, or 
‘‘(II) if the security is not traded on 
such a national securities exchange, a price 
not less favorable to the plan than the of-
fering price for the security as established 
by the current bid and asked prices quoted 
by persons independent of the issuer and 
of the party in interest, taking into ac-
count factors such as the size of the trans-
action and marketability of the security, 
and 
‘‘(ii) in the case of an asset other than a 
security for which there is a generally recog-
323 
HR 2830 PCS 
nized market, the fair market value of the asset 
as determined in good faith by a fiduciary or fi-
duciaries in accordance with regulations pre-
scribed by the Secretary.’’. 
(f) RELIEF
FOR
FOREIGN
EXCHANGE
TRANS-
ACTIONS.—Section 408(b) of such Act (as amended by the 
preceding provisions of this section) is further amended 
by adding at the end the following new paragraph: 
‘‘(18) Any foreign exchange transactions, be-
tween a bank or broker-dealer, or any affiliate of ei-
ther thereof, and a plan with respect to which the 
bank or broker-dealer, or any affiliate, is a trustee, 
custodian, fiduciary, or other party in interest, if— 
‘‘(A) the transaction is in connection with 
the purchase or sale of securities, 
‘‘(B) at the time the foreign exchange 
transaction is entered into, the terms of the 
transaction are not less favorable to the plan 
than the terms generally available in com-
parable arm’s length foreign exchange trans-
actions between unrelated parties, or the terms 
afforded by the bank or the broker-dealer (or 
any affiliate thereof) in comparable arm’s- 
length foreign exchange transactions involving 
unrelated parties, and
324 
HR 2830 PCS 
‘‘(C) the exchange rate used by the bank 
or broker-dealer for a particular foreign ex-
change transaction may not deviate by more 
than 3 percent from the interbank bid and 
asked rates at the time of the transaction as 
displayed on an independent service that re-
ports rates of exchange in the foreign currency 
market for such currency.’’. 
(g) DEFINITION OF PLAN ASSET VEHICLE.—Section 
3 of such Act (29 U.S.C. 1002) is amended by adding 
at the end the following new paragraph: 
‘‘(42) the term ‘plan assets’ means plan assets as de-
fined by such regulations as the Secretary may prescribe, 
except that under such regulations the assets of any entity 
shall not be treated as plan assets if, immediately after 
the most recent acquisition of any equity interest in the 
entity, less than 50 percent of the total value of each class 
of equity interest in the entity is held by employee benefit 
plan investors. For purposes of determinations pursuant 
to this paragraph, the value of any equity interest owned 
by a person (other than such an employee benefit plan) 
who has discretionary authority or control with respect to 
the assets of the entity or any person who provides invest-
ment advice for a fee (direct or indirect) with respect to 
such assets, or any affiliate of such a person, shall be dis-