adviser on an ongoing basis, such regulations 
shall provide for such disclosures on at least an 
annual basis. 
‘‘(C) PLAN ASSETS MAY BE USED TO PAY 
REASONABLE EXPENSES.—Nothing in this part 
shall be construed to preclude the use of plan 
assets to pay for reasonable expenses in pro-
viding qualified investment advice. 
‘‘(6) ANNUAL REVIEWS BY THE SECRETARY.— 
The Secretary shall conduct annual reviews of ran-
domly selected fiduciary advisers providing qualified 
investment advice to participants and beneficiaries. 
In the case of each review, the Secretary shall review 
the following: 
‘‘(A) COMPLIANCE BY ADVICE COMPUTER 
MODELS WITH GENERALLY ACCEPTED INVEST-
MENT MANAGEMENT PRINCIPLES.—The extent 
to which advice computer models employed by 
the fiduciary adviser comply with generally ac-
cepted investment management principles. 
‘‘(B) COMPLIANCE WITH DISCLOSURE RE-
QUIREMENTS.—The extent to which disclosures 
provided by the fiduciary adviser have complied 
with the requirements of this subsection.
‘‘(C) EXTENT
OF
VIOLATIONS.—The ex-
tent to which any violations of fiduciary duties 
have occurred in connection with the provision 
of the advice. 
‘‘(D) 
EXTENT
OF
REPORTED
COM-
PLAINTS.—The extent to which complaints to 
relevant agencies have been made in connection 
with the provision of the advice. 
Any proprietary information obtained by the Sec-
retary shall be treated as confidential. 
‘‘(7) DUTY
OF
CONFLICTED
FIDUCIARY
AD-
VISER
TO
PROVIDE
FOR
ALTERNATIVE
INDE-
PENDENT ADVICE.— 
‘‘(A) IN
GENERAL.—In connection with 
any qualified investment advice provided by a 
fiduciary adviser to a participant or beneficiary 
regarding any security or other property, if the 
fiduciary adviser— 
‘‘(i) has an interest in the security or 
other property, or 
‘‘(ii) has an affiliation or contractual 
relationship with any third party that has 
an interest in the security or other prop-
erty,
the requirements of paragraph (1) shall be 
treated as not met in connection with the advice 
unless the fiduciary adviser has arranged, as an 
alternative to the advice that would otherwise 
be provided by the fiduciary advisor, for quali-
fied investment advice with respect to the secu-
rity or other property provided by at least one 
alternative investment adviser meeting the re-
quirements of subparagraph (B). 
‘‘(B) INDEPENDENCE
AND
QUALIFICA-
TIONS
OF
ALTERNATIVE
INVESTMENT
AD-
VISER.—Any alternative investment adviser 
whose qualified investment advice is arranged 
for by a fiduciary adviser pursuant to subpara-
graph (A)— 
‘‘(i) shall have no material interest in, 
and no material affiliation or contractual 
relationship with any third party having a 
material interest in, the security or other 
property with respect to which the invest-
ment adviser is providing the advice, and 
‘‘(ii) shall meet the requirements of a 
fiduciary adviser under paragraph (8)(A), 
except that an alternative investment ad-
viser may not be a fiduciary of the plan
other than in connection with the provision 
of the advice. 
‘‘(C) SCOPE AND FEES OF ALTERNATIVE 
INVESTMENT
ADVICE.—Any qualified invest-
ment advice provided pursuant to this para-
graph by an alternative investment adviser shall 
be of the same type and scope, and provided 
under the same terms and conditions (including 
no additional charge to the participant or bene-
ficiary), as apply with respect to the qualified 
investment advice to be provided by the fidu-
ciary adviser. 
‘‘(8) FIDUCIARY ADVISER DEFINED.—For pur-
poses of this subsection and subsection (b)(14)— 
‘‘(A) IN
GENERAL.—The term ‘fiduciary 
adviser’ means, with respect to a plan, a person 
who— 
‘‘(i) is a fiduciary of the plan by rea-
son of the provision of qualified investment 
advice by such person to a participant or 
beneficiary, 
‘‘(ii) meets the qualifications of sub-
paragraph (B), and 
‘‘(iii) meets the additional require-
ments of subparagraph (C).