failure of investment advice to be a 
best interest recommendation, the 
amount involved shall be the amount 
paid to the person providing the ad-
vice (or its affiliate, as defined in 
paragraph (8)(J)(ii)) that has not been 
paid or reimbursed to the plan, plan 
participants, or plan beneficiaries, in-
cluding 
payments 
and 
reimburse-
ments made pursuant to paragraph 
(5).’’. 
(4) EXEMPTION
RELATING
TO
INVEST-
MENT ADVICE WITH RESPECT TO CERTAIN FEE 
ARRANGEMENTS.—Section 4975(d) of such 
Code (as amended by paragraph (1)) is 
amended by striking ‘‘or’’ at the end of 
paragraph (23), by striking the period at 
the end of paragraph (24) and inserting ‘‘, 
or’’, and by adding after paragraph (24) 
the following: 
‘‘(25) any transaction, including a 
contract for service, between a person 
providing investment advice described in 
subsection (e)(3)(B) and the advice recipi-
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rfrederick on DSK6VPTVN1PROD with BILLS
ent in connection with such investment 
advice, if— 
‘‘(A) no more than reasonable 
compensation is paid (as determined 
under section 4975(d)(2)) for such in-
vestment advice, 
‘‘(B) in a case in which the invest-
ment advice is based on a limited 
range of investment options (which 
may consist, in whole or in part, of 
proprietary products), such limita-
tions, including a clearly-stated no-
tice that the same or similar invest-
ments may be available at a different 
cost (greater or lesser) from other 
sources), shall be clearly disclosed to 
the advice recipient prior to any 
transaction based on the investment 
advice, 
‘‘(C) in a case in which the invest-
ment advice may result in variable 
compensation to the person providing 
the investment advice (or any affil-
iate of such person), the receipt of 
such compensation, including a clear-
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rfrederick on DSK6VPTVN1PROD with BILLS
ly-stated notice that the same or simi-
lar investments may be available at a 
different cost (greater or lesser) from 
other sources, shall be clearly dis-
closed to the advice recipient (within 
the meaning of subsection (e)(11)(C)), 
and 
‘‘(D) in any case in which a per-
son who, acting in good faith and 
with reasonable diligence, makes an 
error or omission in disclosing the in-
formation specified in subparagraphs 
(B) or (C), the person discloses the 
correct information to the advice re-
cipient as soon as practicable but not 
later than 30 days from the date on 
which the person knows of such error 
or omission.’’. 
(b) EFFECTIVE DATE.— 
(1) MODIFICATION
OF
CERTAIN
RULES, 
AND RULES AND ADMINISTRATIVE POSITIONS 
PROMULGATED BEFORE ENACTMENT BUT NOT 
EFFECTIVE
ON
JANUARY
1, 2015, PROHIB-
ITED.—The Department of Labor is pro-
hibited from amending any rules or ad-
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ministrative positions promulgated under 
section 3(21) of the Employee Retirement 
Income Security Act of 1974 and section 
4975(e)(3) of the Internal Revenue Code 
of 1986 (including Department 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 administrative 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 
effective unless a bill or joint resolution 
referred to in paragraph (3) is enacted as 
described in such paragraph not later 
than 60 days after the date of the enact-
ment of this Act. 
(2) 
GENERAL
EFFECTIVE
DATE
OF 
AMENDMENTS.—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 
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years after the date of the enactment of 
this Act. 
(3) EXCEPTION.—If a bill or joint reso-
lution is enacted prior to the 61st day 
after the date of the enactment of this 
Act that specifically approves any rules 
or administrative positions promulgated 
under section 3(21) of the Employee Re-
tirement Security Act of 1974 and section 
4975(e)(3) of the Internal Revenue Code 
of 1986 that is not in effect on January 1, 
2015, the amendments made by sub-
section (a) of this section shall not take 
effect. 
(c) GRANDFATHERED
TRANSACTIONS
AND 
SERVICES.—The amendments made by sub-
section (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 subsection (a) of this section take effect, 
then nothing in this section shall be con-
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strued to prohibit the issuance of guidance to 
carry out such amendments so long as such 
guidance is necessary to implement such 
amendments. Until such time as regulations 
or other guidance are issued to carry out such 
amendments, a plan and a fiduciary shall be 
treated as meeting the requirements of such 
amendments if the plan or fiduciary, as the 
case may be, makes a good faith effort to com-
ply with such requirements. 
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Union Calendar No. 392 
114TH CONGRESS 
2D SESSION 
H. R. 4294 
[Report No. 114–512, Parts I and II] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
ensure that retirement investors receive advice in 
their best interests, and for other purposes. 
APRIL 20, 2016 
Reported from the Committee on Ways and Means with 
an amendment 
APRIL 20, 2016 
Reported from the Committee on Education and the 
Workforce with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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