I 
115TH CONGRESS 
1ST SESSION H. R. 2823 
To amend the Employee Retirement Income Security Act of 1974 and the 
Internal Revenue Code of 1986 to ensure that retirement investors re-
ceive advice in their best interests, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 8, 2017 
Mr. ROE of Tennessee (for himself, Mr. ROSKAM, Mr. WALBERG, and Mr. 
WILSON of South Carolina) introduced the following bill; which was re-
ferred to the Committee on Education and the Workforce, and in addition 
to the Committee on Ways and Means, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Employee Retirement Income Security Act 
of 1974 and the Internal Revenue Code of 1986 to 
ensure that retirement investors receive advice in their 
best interests, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Affordable Retirement 
Advice for Savers Act’’. 
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SEC. 2. REPEAL OF FIDUCIARY DEFINITION RULEMAKING. 
(a) IN GENERAL.—The Fiduciary Definition rule-
making described in subsection (b) is repealed and shall 
have no force or effect, and the regulations and prohibited 
transaction exemptions amended or repealed by such rule-
making are restored or revived as if such rulemaking had 
not been issued. 
(b) FIDUCIARY DEFINITION RULEMAKING.—The Fi-
duciary Definition rulemaking described in this subsection 
consists of the following: 
(1) The final rule of the Department of Labor 
titled ‘‘Definition of the Term ‘Fiduciary’; Conflict 
of Interest Rule—Retirement Investment Advice’’ 
published April 8, 2016 (81 Fed. Reg. 20946). 
(2) The ‘‘Best Interest Contract Exemption’’ 
published April 8, 2016 (81 Fed. Reg. 21002), and 
the technical correction published July 11, 2016 (81 
Fed. Reg. 44773). 
(3) The ‘‘Class Exemption for Principal Trans-
actions in Certain Assets Between Investment Ad-
vice Fiduciaries and Employee Benefit Plans and 
IRAs’’ published April 8, 2016 (81 Fed. Reg. 
21089), and the technical correction published July 
11, 2016 (81 Fed. Reg. 44784). 
(4) The ‘‘Amendment to Prohibited Transaction 
Exemption (PTE) 75–1, Part V, Exemptions From 
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Prohibitions Respecting Certain Classes of Trans-
actions Involving Employee Benefit Plans and Cer-
tain Broker-Dealers, Reporting Dealers and Banks’’ 
published April 8, 2016 (81 Fed. Reg. 21139). 
(5) The ‘‘Amendment to and Partial Revocation 
of Prohibited Transaction Exemption (PTE) 86–128 
for Securities Transactions Involving Employee Ben-
efit Plans and Broker-Dealers; Amendment to and 
Partial Revocation of PTE 75–1, Exemptions From 
Prohibitions Respecting Certain Classes of Trans-
actions Involving Employee Benefits Plans and Cer-
tain Broker-Dealers, Reporting Dealers and Banks’’ 
published April 8, 2016 (81 Fed. Reg. 21181). 
(6) The ‘‘Amendments to Class Exemptions 
75–1, 77–4, 80–83 and 83–1’’ published April 8, 
2016 (81 Fed. Reg. 21208). 
(7) The ‘‘Amendment to and Partial Revocation 
of Prohibited Transaction Exemption (PTE) 84–24 
for Certain Transactions Involving Insurance Agents 
and Brokers, Pension Consultants, Insurance Com-
panies, and Investment Company Principal Under-
writers’’ published April 8, 2016 (81 Fed. Reg. 
21147). 
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SEC. 3. RULES RELATING TO THE PROVISION OF INVEST-
MENT ADVICE. 
(a) AMENDMENTS TO THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974.— 
(1) DEFINITION
OF
INVESTMENT
ADVICE.— 
Section 3(21) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002(21)) is 
amended by adding at the end the following: 
‘‘(C)(i) For purposes of clause (ii) of subparagraph 
(A), the term ‘investment advice’ means a recommenda-
tion communicated electronically, on paper, or orally 
that— 
‘‘(I) relates to— 
‘‘(aa) the advisability of acquiring, holding, 
disposing, or exchanging any moneys or other 
property of a plan by the plan, plan partici-
pants, or plan beneficiaries, including any rec-
ommendation whether to take a distribution of 
benefits from such plan or any recommendation 
relating to the investment of any moneys or 
other property of such plan to be distributed 
from such plan; 
‘‘(bb) the management of moneys or other 
property of such plan, including recommenda-
tions relating to the management of moneys or 
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other property to be distributed from such plan; 
or 
‘‘(cc) the advisability of retaining or ceas-
ing to retain a person who would receive a fee 
or other compensation for providing any of the 
types of advice described in this subclause; and 
‘‘(II) is rendered pursuant to— 
‘‘(aa) a written acknowledgment, provided 
electronically or on paper, of the obligation of 
the advisor to comply with section 404 with re-
spect to the provision of such recommendation; 
or 
‘‘(bb) a mutual agreement, arrangement, 
or understanding, which may include limitations 
on scope, timing, and responsibility to provide 
ongoing monitoring or advice services, between 
the person making such recommendation and 
the plan that such recommendation is individ-
ualized to the plan and such plan intends to 
materially rely on such recommendation in 
making investment or management decisions 
with respect to any moneys or other property of 
such plan. 
‘‘(ii) For purposes of clause (i)(II)(bb), any dis-
claimer of a mutual agreement, arrangement, or under-
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standing shall state only the following: ‘This communica-
tion is not individualized to you, and you are not intended 
to rely materially on this communication in making invest-
ment or management decisions.’. Such disclaimer shall not 
be effective unless such disclaimer is in writing and is 
communicated in a clear and prominent manner and an 
objective person would reasonably conclude that, based on 
all the facts and circumstances, there was not a mutual 
agreement, arrangement, or understanding. 
‘‘(iii) For purposes of clause (i)(II)(bb), a commu-
nication shall not be considered to be a recommendation 
made pursuant to a mutual agreement, arrangement, or 
understanding, if such communication contains the dis-
claimer required by clause (ii), and— 
‘‘(I) it is provided in conjunction with clear and 
prominent disclosure in writing to a plan, plan par-
ticipant, or beneficiary that the person providing the 
communication is doing so in its marketing or sales 
capacity, including any communication regarding the 
terms and conditions of the engagement of the per-
son providing the communication, and that the per-
son is not intending to provide investment advice 
within the meaning of this subparagraph or to other-
wise act within and under the obligations of the best 
interest standard as described in this subparagraph; 
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munication to the plan for no fee or other compensa-
tion other than the employee’s normal compensation; 
‘‘(IV) the person providing the communication 
discloses in writing to the plan fiduciary that the 
person is not undertaking to provide investment ad-
vice as a fiduciary to the plan subject to section 404 
and the communication consists solely of— 
‘‘(aa) making available to the plan, without 
regard to the individualized needs of the plan, 
securities or other property or investment prod-
ucts through a platform or similar mechanism 
from which a plan fiduciary may select or mon-
itor investment alternatives; or 
‘‘(bb) in connection with a platform or 
similar mechanism described in item (aa)— 
‘‘(AA) identifying investment alter-
natives that meet objective criteria speci-
fied by the plan, such as criteria con-
cerning expense ratios, fund sizes, types of 
asset, or credit quality; 
‘‘(BB) providing objective financial 
data and comparisons with independent 
benchmarks to the plan; or 
‘‘(CC) identifying a sample set of in-
vestment alternatives based on the plan’s 
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stated criteria in response to an inquiry 
from a plan fiduciary; 
‘‘(V) the communication consists solely of valu-
ation information; or 
‘‘(VI) the communication consists solely of— 
‘‘(aa) information described in Department 
of Labor Interpretive Bulletin 96–1 (29 C.F.R. 
2509.96–1, as in effect on January 1, 2015), 
regardless of whether such education is pro-
vided to a plan or plan fiduciary or a partici-
pant or beneficiary; 
‘‘(bb) information provided to participants 
or beneficiaries regarding the factors to con-
sider in deciding whether to elect to receive a 
distribution from a plan or an individual retire-
ment plan (as defined in section 7701(a)(37) of 
the Internal Revenue Code of 1986) and wheth-
er 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 
examples are based; or 
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‘‘(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 
advice described in section 3(21)(A)(ii) and the ad-
vice recipient in connection with such investment ad-
vice, and any transaction consisting of the provision 
of such investment advice, if the following conditions 
are satisfied: 
‘‘(i) No more than reasonable compensa-
tion 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 
products), such limitations shall be clearly dis-
closed to the advice recipient prior to any trans-
action based on the investment advice in the 
form of a notice that only states the following: 
‘This recommendation is based on a limited 
range of investment options, and the same or 
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similar investments may be available at a dif-
ferent cost (greater or lesser) from other 
sources.’. 
‘‘(iii) If the investment advice may result 
in variable compensation to the person pro-
viding 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 invest-
ment advice. For purposes of this subpara-
graph, clear disclosure of variable compensation 
shall include, in a manner calculated to be un-
derstood by the average 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 
administrative guidance implementing this 
subclause may not require this notice to be 
updated more than annually. 
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‘‘(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 are rea-
sonably expected to be directly or indirectly 
payable to the person (or its affiliate) by 
any third party in connection with such 
transaction (expressed as an amount, for-
mula, percentage of assets, per capita 
charge, or estimate or range of such com-
pensation). 
‘‘(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, percent-
age of assets, per capita charge, or esti-
mate of such compensation). 
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‘‘(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 
specified in such clauses, provided that the person 
discloses the correct information to the advice recipi-
ent as soon as practicable, but not later than 30 
days from the date on which the person knows of 
such error or omission. 
‘‘(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 
otherwise 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) AMENDMENTS
TO
THE INTERNAL REVENUE 
CODE OF 1986.— 
(1) EXEMPTION
FOR
INVESTMENT
ADVICE 
WHICH IS BEST INTEREST RECOMMENDATION.—Sec-
tion 4975(d) of the Internal Revenue Code of 1986 
is amended by striking ‘‘or’’ at the end of paragraph 
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(22), by striking the period at the end of paragraph 
(23) and inserting ‘‘, or’’, and by inserting after 
paragraph (23) the following: 
‘‘(24) provision of investment advice by a fidu-
ciary to a plan, plan participant, or beneficiary with 
respect to the plan, which is a best interest rec-
ommendation or a transaction connected to such ad-
vice.’’. 
(2) INVESTMENT ADVICE; BEST INTEREST REC-
OMMENDATION.—Section 4975(e) of such Code is 
amended by adding at the end the following: 
‘‘(10) INVESTMENT ADVICE.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘investment advice’ means a 
recommendation, communicated electronically, 
on paper, or orally, that— 
‘‘(i) relates to— 
‘‘(I) the advisability of acquiring, 
holding, disposing, or exchanging any 
moneys or other property of a plan by 
the plan, plan participants, or plan 
beneficiaries, 
including 
any 
rec-
ommendation whether to take a dis-
tribution of benefits from such plan or 
any recommendation relating to the 
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investment of any moneys or other 
property of such plan to be distrib-
uted from such plan; 
‘‘(II) the management of moneys 
or other property of such plan, includ-
ing recommendations relating to the 
management of moneys or other prop-
erty to be distributed from such plan; 
or 
‘‘(III) the advisability of retain-
ing or ceasing to retain a person who 
would receive a fee or other com-
pensation for providing any of the 
types of advice described in this sub-
clause; and 
‘‘(ii) is rendered pursuant to— 
‘‘(I) a written acknowledgment, 
provided electronically or on paper, 
that the person is a fiduciary with re-
spect to the provision of such rec-
ommendation; or 
‘‘(II) a mutual agreement, ar-
rangement, or understanding which 
may include limitations on scope, tim-
ing, and responsibility to provide on-
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going monitoring or advice services, 
between the person making such rec-
ommendation and the plan, plan par-
ticipant, or beneficiary that such rec-
ommendation is individualized to the 
plan, plan participant, or beneficiary 
and such plan, plan participant, or 
beneficiary intends to materially rely 
on such recommendation in making 
investment or management decisions 
with respect to any moneys or other 
property of such plan. 
‘‘(B) DISCLAIMER OF A MUTUAL AGREE-
MENT, ARRANGEMENT, OR UNDERSTANDING.— 
For purposes of subparagraph (A)(ii)(II), any 
disclaimer of a mutual agreement, arrangement, 
or understanding shall state only the following: 
‘This communication is not individualized to 
you, and you are not intended to rely materially 
on this communication in making investment or 
management decisions.’. Such disclaimer shall 
not be effective unless such disclaimer is in 
writing and is communicated in a clear and 
prominent manner and an objective person 
would reasonably conclude that, based on all 
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the facts and circumstances, there was not a 
mutual agreement, arrangement, or under-
standing. 
‘‘(C) WHEN RECOMMENDATION TREATED 
AS
MADE
PURSUANT
TO
A
MUTUAL
AGREE-
MENT, ARRANGEMENT, OR UNDERSTANDING.— 
For purposes of subparagraph (A)(ii)(II), a 
communication shall not be treated as a rec-
ommendation made pursuant to a mutual 
agreement, arrangement, or understanding, if 
such communication contains the disclaimer re-
quired by subparagraph (B), and— 
‘‘(i) 
SELLER’S
EXCEPTION.—The 
communication is provided in conjunction 
with clear and prominent disclosure in 
writing to a plan, plan participant, or ben-
eficiary that the person providing the com-
munication is doing so in its marketing or 
sales capacity, including any communica-
tion regarding the terms and conditions of 
the engagement of the person providing 
the communication, and that the person is 
not intending to provide investment advice 
within the meaning of this subparagraph 
or to otherwise act as a fiduciary to the 
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plan or under the obligations of a best in-
terest recommendation. 
‘‘(ii) CERTAIN
COUNTERPARTIES
OR 
SERVICE
PROVIDERS.—The person pro-
viding the communication is a current or 
potential counterparty or service provider 
to the plan in connection with any trans-
action based on the communication, but 
only if— 
‘‘(I) the plan is represented, in 
connection with such transaction, by a 
plan fiduciary that is independent of 
the person providing the communica-
tion, and, except in the case of a swap 
(as defined in section 1a of the Com-
modity Exchange Act (7 U.S.C. 1a) or 
security-based swap (as defined in 
section 3(a) of the Securities Ex-
change Act (15 U.S.C. 78c(a)))), 
independent of the plan sponsor; and 
‘‘(II) prior to entering into such 
transaction, the independent plan fi-
duciary represents in writing to the 
person providing the communication 
that it is aware that the person has a 
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financial interest in the transaction 
and that it has determined that the 
person is not intending to provide in-
vestment advice within the meaning of 
this subparagraph or to otherwise act 
as a fiduciary to the plan, plan par-
ticipants, or plan beneficiaries. 
‘‘(iii) EMPLOYEES OF A PLAN SPON-
SOR.—The person providing the commu-
nication is an employee of any sponsoring 
employer or affiliate or employee organiza-
tion who provides the communication to 
the plan for no fee or other compensation 
other than the employee’s normal com-
pensation. 
‘‘(iv) PLATFORM
PROVIDERS
SELEC-
TION AND MONITORING ASSISTANCE.—The 
person providing the communication dis-
closes in writing to the plan fiduciary that 
the person is not undertaking to provide 
investment advice as a fiduciary (within 
the meaning of this paragraph) or under 
the obligations of a best interest rec-
ommendation and the communication con-
sists solely of— 
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‘‘(I) making available to the plan, 
plan 
participants, 
or 
plan 
bene-
ficiaries, without regard to the indi-
vidualized needs of the plan, plan par-
ticipants, or plan beneficiaries, securi-
ties or other property or investment 
products through a platform or simi-
lar mechanism from which a plan fi-
duciary may select or monitor invest-
ment alternatives; or 
‘‘(II) in connection with a plat-
form or similar mechanism described 
in subclause (I)— 
‘‘(aa) identifying investment 
alternatives that meet objective 
criteria specified by the plan, 
such as criteria concerning ex-
pense ratios, fund sizes, types of 
asset, or credit quality; 
‘‘(bb) providing objective fi-
nancial data and comparisons 
with independent benchmarks to 
the plan; or 
‘‘(cc) identifying a sample 
set of investment alternatives 
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based on the plan’s stated cri-
teria in response to an inquiry 
from a plan fiduciary. 
‘‘(v) VALUATION.—The communica-
tion consists solely of valuation informa-
tion. 
‘‘(vi) FINANCIAL
EDUCATION.—The 
communication consists solely of— 
‘‘(I) information described in De-
partment of Labor Interpretive Bul-
letin 96–1 (29 C.F.R. 2509.96–1, as 
in effect on January 1, 2015), regard-
less of whether such education is pro-
vided to a plan or plan fiduciary or a 
participant or beneficiary; 
‘‘(II) information provided to 
participants or beneficiaries regarding 
the factors to consider in deciding 
whether to elect to receive a distribu-
tion from a plan and whether to roll 
over such distribution to a plan, so 
long as any examples of different dis-
tribution alternatives are accompanied 
by all material facts and assumptions 
on which the examples are based; or 
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‘‘(III) any additional information 
treated as education by the Secretary. 
‘‘(11) BEST
INTEREST
RECOMMENDATION.— 
For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘best inter-
est recommendation’ means a recommenda-
tion— 
‘‘(i) for which no more than reason-
able compensation is paid (as determined 
under subsection (d)(2)); 
‘‘(ii) provided by a person acting with 
the care, skill, prudence, and diligence 
under the circumstances then prevailing 
that a prudent person would exercise based 
on— 
‘‘(I) the information obtained 
through the reasonable diligence of 
the person regarding factors such as 
the advice recipient’s age; and 
‘‘(II) any other information that 
the advice recipient discloses to the 
person in connection with receiving 
such recommendation; and 
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‘‘(iii) where the person places the in-
terests of the plan or advice recipient 
above its own. 
‘‘(B) INVESTMENT
OPTIONS; 
VARIABLE 
COMPENSATION.—A best interest recommenda-
tion may include a recommendation that— 
‘‘(i) is based on a limited range of in-
vestment options (which may consist, in 
whole or in part, of proprietary products), 
but only if any such limitations shall be 
clearly disclosed to the advice recipient 
prior to any transaction based on the in-
vestment advice in the form of a notice 
that only states the following: ‘This rec-
ommendation is based on a limited range 
of investment options, and the same or 
similar investments may be available at a 
different cost (greater or lesser) from other 
sources.’; or 
‘‘(ii) may result in variable compensa-
tion to the person providing the rec-
ommendation (or any affiliate of such per-
son), but only if the receipt of such com-
pensation shall be clearly disclosed to the 
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advice recipient prior to any transaction 
based on the investment advice. 
‘‘(C) CLEAR
DISCLOSURE
OF
VARIABLE 
COMPENSATION.—For purposes of this para-
graph, clear disclosure of variable compensation 
shall include, in a manner calculated to be un-
derstood by the average 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 
administrative guidance implementing this 
clause 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 
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charge, or estimate or range of such com-
pensation). 
‘‘(iii) A description of the types and 
ranges of any compensation that are rea-
sonably expected to be directly or indirectly 
payable to the person (or its affiliate) by 
any third party in connection with such 
transaction (expressed as an amount, for-
mula, percentage of assets, per capita 
charge, or estimate or range of such com-
pensation). 
‘‘(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, percent-
age of assets, per capita charge, or esti-
mate of such compensation). 
‘‘(D) DEFINITION
OF
AFFILIATE.—For 
purposes of this paragraph, the term ‘affiliate’ 
has 
the 
meaning 
given 
in 
subsection 
(f)(8)(J)(ii). 
‘‘(E) CORRECTION
OF
CERTAIN
ERRORS 
AND OMISSIONS.—A recommendation shall not 
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fail to be a best interest recommendation solely 
because a person who, acting in good faith and 
with reasonable diligence, makes an error or 
omission in disclosing the information specified 
in subparagraph (B), if 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 omission. 
‘‘(F) SPECIAL RULE.—Any notice provided 
pursuant to a requirement under subparagraph 
(B)(i) or subparagraph (C)(i) shall have no ef-
fect on any other notice otherwise required 
without regard to this title, and shall be pro-
vided in addition to, and not in lieu of, any 
other such notice.’’. 
(3) FAILURES
RELATING
TO
BEST
INTEREST 
RECOMMENDATION.— 
(A) CORRECTION.—Section 4975(f)(5) of 
such Code is amended— 
(i) by striking ‘‘(5) CORRECTION- 
The terms’’ and inserting: 
‘‘(5) CORRECTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the terms’’, and 
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(ii) by adding at the end the fol-
lowing: 
‘‘(B) DETERMINATION
OF ‘CORRECTION’ 
AND ‘CORRECT’ WITH RESPECT TO BEST INTER-
EST ADVICE RECOMMENDATIONS.—In the case 
of a prohibited transaction arising by the fail-
ure of investment advice to be a best interest 
recommendation, the terms ‘correction’ and 
‘correct’ mean the payment to, or reimburse-
ment of, actual damages of the plan, plan par-
ticipants, or plan beneficiaries resulting directly 
from the plan’s, plan participant’s, or plan 
beneficiary’s reliance on such investment advice, 
if any, that have not otherwise been paid or re-
imbursed to the plan, plan participants, or plan 
beneficiaries, including payments and reim-
bursements made pursuant to subparagraph 
(A) if such amount is greater than the amount 
determined under subparagraph (A).’’. 
(B) AMOUNT INVOLVED FOR PURPOSES OF 
EXCISE
TAX.—The first sentence of section 
4975(f)(4) of such Code is amended by striking 
‘‘excess compensation.’’ and inserting ‘‘excess 
compensation, and in the case of a prohibited 
transaction arising by the failure of investment 
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advice to be a best interest recommendation, 
the amount involved shall be the amount paid 
to the person providing the advice (or its affil-
iate, as defined in paragraph (8)(J)(ii)) that 
has not been paid or reimbursed to the plan, 
plan participants, or plan beneficiaries, includ-
ing payments and reimbursements made pursu-
ant to paragraph (5).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect on the date of 
the enactment of this Act and shall apply with respect to 
communications provided or recommendations made on or 
after 2 years after such date. 
(d) GRANDFATHERED TRANSACTIONS
AND SERV-
ICES.—The amendments made by subsections (a) and (b) 
shall not apply to any service or transaction rendered, en-
tered into, or for which a person has been compensated 
prior to the date on which the amendments become effec-
tive under subsection (c). 
(e) TRANSITION.—Until such time as regulations or 
other guidance are issued to carry out the amendments 
made by subsections (a) and (b), 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, 
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complies with a reasonable good faith interpretation of 
such amendments. 
Æ 
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