IB 
Union Calendar No. 443 
115TH CONGRESS 
2D SESSION 
H. R. 2823 
[Report No. 115–371, Part I] 
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 
OCTOBER 25, 2017 
Reported from the Committee on Education and the Workforce with an 
amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
OCTOBER 25, 2017 
Referral to the Committee on Ways and Means extended for a period ending 
not later than January 10, 2018 
[For text of introduced bill, see copy of bill as introduced on June 8, 2017] 
JANUARY 10, 2018 
Referral to the Committee on Ways and Means extended for a period ending 
not later than February 2, 2018 
FEBRUARY 2, 2018 
Referral to the Committee on Ways and Means extended for a period ending 
not later than March 5, 2018 
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MARCH 5, 2018 
Additional sponsors: Mr. GROTHMAN, Mr. SAM JOHNSON of Texas, Mr. MAR-
SHALL, Mr. SESSIONS, Mr. LAHOOD, Mr. BARTON, Mr. LATTA, Mr. 
BISHOP of Michigan, Mr. ROKITA, Mr. ALLEN, Mr. RENACCI, Mr. 
MITCHELL, Mr. FLEISCHMANN, Mr. DUNCAN of Tennessee, Mr. KELLY 
of Pennsylvania, Mr. BARLETTA, Mr. BUDD, Ms. STEFANIK, Mr. PAUL-
SEN, Mr. MARCHANT, Mr. THOMPSON of Pennsylvania, Ms. FOXX, Mr. 
GUTHRIE, Mr. FRANCIS ROONEY of Florida, Mr. FERGUSON, Mr. ESTES 
of Kansas, and Mr. MESSER 
MARCH 5, 2018 
The Committee on Ways and Means discharged; committed to the Committee 
of the Whole House on the State of the Union and ordered to be printed 
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. 
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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’’. 
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 Fidu-
ciary Definition rulemaking described in this subsection 
consists of the following: 
(1) The final rule of the Department of Labor ti-
tled ‘‘Definition of the Term ‘Fiduciary’; Conflict of 
Interest Rule—Retirement Investment Advice’’ pub-
lished 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 Advice 
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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 
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 
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and Brokers, Pension Consultants, Insurance Compa-
nies, and Investment Company Principal Under-
writers’’ published April 8, 2016 (81 Fed. Reg. 
21147). 
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.—Sec-
tion 3(21) of the Employee Retirement Income Secu-
rity 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 recommendation 
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; 
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‘‘(bb) the management of moneys or other 
property of such plan, including recommenda-
tions relating to the management of moneys or 
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 individualized 
to the plan and such plan intends to materially 
rely on such recommendation in making invest-
ment or management decisions with respect to 
any moneys or other property of such plan. 
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‘‘(ii) For purposes of clause (i)(II)(bb), 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 ma-
terially on this communication in making investment or 
management decisions.’. Such disclaimer shall not be effec-
tive unless such disclaimer is in writing and is commu-
nicated 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 communica-
tion shall not be considered to be a recommendation made 
pursuant to a mutual agreement, arrangement, or under-
standing, if such communication contains the disclaimer re-
quired 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 person 
providing the communication, and that the person is 
not intending to provide investment advice within the 
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meaning of this subparagraph or to otherwise act as 
a fiduciary to the plan; 
‘‘(II) the person providing the communication is 
a current or potential counterparty or service pro-
vider to the plan in connection with any transaction 
based on the communication, but only if— 
‘‘(aa) the plan is represented, in connection 
with such transaction, by a plan fiduciary that 
is independent of the person providing the com-
munication, and, except in the case of a swap 
(as defined in section 1a of the Commodity Ex-
change 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 
‘‘(bb) prior to such transaction, the inde-
pendent plan fiduciary represents in writing to 
the person providing the communication that it 
is aware that the person has a 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 sub-
paragraph or to otherwise act as a fiduciary to 
the plan subject to section 404; 
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‘‘(III) the person providing the communication 
is an employee of any sponsoring employer or affil-
iate or employee organization who provides the com-
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 per-
son is not undertaking to provide investment advice 
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 specified 
by the plan, such as criteria concerning ex-
pense ratios, fund sizes, types of asset, or 
credit quality; 
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‘‘(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 
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), re-
gardless of whether such education is provided to 
a plan or plan fiduciary or a participant or 
beneficiary; 
‘‘(bb) information provided to participants 
or beneficiaries regarding the factors to consider 
in deciding whether to elect to receive a distribu-
tion from a plan or an individual retirement 
plan (as defined in section 7701(a)(37) of the In-
ternal Revenue Code of 1986) and whether 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 
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1986), so long as any examples of different dis-
tribution alternatives are accompanied by all 
material facts and assumptions on which the ex-
amples are based; or 
‘‘(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 ad-
vice described in section 3(21)(A)(ii) and the advice 
recipient in connection with such investment advice, 
and any transaction consisting of the provision of 
such investment advice, if the following conditions are 
satisfied: 
‘‘(i) No more than reasonable compensation 
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 prod-
ucts), such limitations shall be clearly disclosed 
to the advice recipient prior to any transaction 
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based on the investment advice in the form of a 
notice that only states the following: ‘This rec-
ommendation is based on a limited range of in-
vestment options, and the same or similar in-
vestments may be available at a different cost 
(greater or lesser) from other sources.’. 
‘‘(iii) If the investment advice may result in 
variable compensation to the person providing 
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 investment advice. 
For purposes of this subparagraph, clear disclo-
sure of variable compensation shall include, in a 
manner calculated to be understood by the aver-
age 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 ad-
ministrative guidance implementing this 
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subclause 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 
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, percentage of assets, 
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per capita charge, or estimate of such com-
pensation). 
‘‘(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 speci-
fied in such clauses, provided that 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 omis-
sion. 
‘‘(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 oth-
erwise 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.—Section 
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4975(d) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or’’ at the end of paragraph 
(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-
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tribution 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; 
‘‘(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 compensa-
tion for providing any of the types of 
advice described in this subclause; 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-
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ing, and responsibility to provide on-
going monitoring or advice services, be-
tween 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 in-
vestment 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 writ-
ing and is communicated in a clear and promi-
nent manner and an objective person would rea-
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sonably conclude that, based on all the facts and 
circumstances, there was not a mutual agree-
ment, arrangement, or understanding. 
‘‘(C) WHEN RECOMMENDATION TREATED AS 
MADE PURSUANT TO A MUTUAL AGREEMENT, AR-
RANGEMENT, 
OR
UNDERSTANDING.—For pur-
poses of subparagraph (A)(ii)(II), a communica-
tion shall not be treated as a recommendation 
made pursuant to a mutual agreement, arrange-
ment, or understanding, if such communication 
contains the disclaimer required by subpara-
graph (B), and— 
‘‘(i) SELLER’S EXCEPTION.—The com-
munication is provided in conjunction with 
clear and prominent disclosure in writing 
to a plan, plan participant, or beneficiary 
that the person providing the communica-
tion is doing so in its marketing or sales 
capacity, including any communication re-
garding the terms and conditions of the en-
gagement of the person providing the com-
munication, and that the person is not in-
tending to provide investment advice within 
the meaning of this subparagraph or to oth-
erwise act as a fiduciary to the plan or 
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under the obligations of a best interest rec-
ommendation. 
‘‘(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 transaction 
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 sec-
tion 3(a) of the Securities Exchange 
Act (15 U.S.C. 78c(a)))), independent 
of the plan sponsor; and 
‘‘(II) prior to entering into such 
transaction, the independent plan fidu-
ciary represents in writing to the per-
son providing the communication that 
it is aware that the person has a fi-
nancial interest in the transaction and 
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that it has determined that the person 
is not intending to provide investment 
advice within the meaning of this sub-
paragraph or to otherwise act as a fi-
duciary to the plan, plan participants, 
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 compensation. 
‘‘(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 in-
vestment advice as a fiduciary (within the 
meaning of this paragraph) or under the 
obligations of a best interest recommenda-
tion and the communication consists solely 
of— 
‘‘(I) making available to the plan, 
plan 
participants, 
or 
plan 
bene-
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daltland on DSKBBV9HB2PROD with BILLS
ficiaries, without regard to the individ-
ualized needs of the plan, plan partici-
pants, or plan beneficiaries, securities 
or other property or investment prod-
ucts through a platform or similar 
mechanism from which a plan fidu-
ciary may select or monitor investment 
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 expense ra-
tios, 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 
based on the plan’s stated criteria 
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daltland on DSKBBV9HB2PROD with BILLS
in response to an inquiry from a 
plan fiduciary. 
‘‘(v) VALUATION.—The communication 
consists solely of valuation information. 
‘‘(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), regardless 
of whether such education is provided 
to a plan or plan fiduciary or a par-
ticipant 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 
‘‘(III) any additional information 
treated as education by the Secretary. 
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‘‘(11) BEST INTEREST RECOMMENDATION.—For 
purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘best interest 
recommendation’ means a recommendation— 
‘‘(i) for which no more than reasonable 
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 
‘‘(iii) where the person places the inter-
ests of the plan or advice recipient above its 
own. 
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‘‘(B) INVESTMENT OPTIONS; VARIABLE COM-
PENSATION.—A best interest recommendation 
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 recommenda-
tion is based on a limited range of invest-
ment options, and the same or similar in-
vestments 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 
advice recipient prior to any transaction 
based on the investment advice. 
‘‘(C) CLEAR
DISCLOSURE
OF
VARIABLE 
COMPENSATION.—For purposes of this para-
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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 ad-
ministrative guidance implementing this 
clause may not require this notice to be up-
dated 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 
charge, or estimate or range of such com-
pensation). 
‘‘(iii) A description of the types and 
ranges of any compensation that are rea-
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daltland on DSKBBV9HB2PROD with BILLS
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 recipi-
ent, 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, percentage of assets, per 
capita charge, or estimate of such com-
pensation). 
‘‘(D) DEFINITION OF AFFILIATE.—For pur-
poses 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 fail to 
be a best interest recommendation solely because 
a person who, acting in good faith and with rea-
sonable diligence, makes an error or omission in 
disclosing the information specified in subpara-
graph (B), if the person discloses the correct in-
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formation 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 effect 
on any other notice otherwise required without 
regard to this title, and shall be provided in ad-
dition to, and not in lieu of, any other such no-
tice.’’. 
(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 
(ii) by adding at the end the following: 
‘‘(B) DETERMINATION
OF
‘CORRECTION’ 
AND ‘CORRECT’ WITH RESPECT TO BEST INTER-
EST ADVICE RECOMMENDATIONS.—In the case of 
a prohibited transaction arising by the failure of 
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daltland on DSKBBV9HB2PROD with BILLS
investment advice to be a best interest rec-
ommendation, the terms ‘correction’ and ‘correct’ 
mean the payment to, or reimbursement of, ac-
tual damages of the plan, plan participants, 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 reimbursed to 
the plan, plan participants, or plan bene-
ficiaries, including payments and reimburse-
ments made pursuant to subparagraph (A) if 
such amount is greater than the amount deter-
mined 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 
advice to be a best interest recommendation, the 
amount involved shall be the amount paid to the 
person providing the advice (or its affiliate, as 
defined in paragraph (8)(J)(ii)) that has not 
been paid or reimbursed to the plan, plan par-
ticipants, or plan beneficiaries, including pay-
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daltland on DSKBBV9HB2PROD with BILLS
ments and reimbursements made pursuant to 
paragraph (5).’’. 
(c) EFFECTIVE DATE.—The amendments made by sub-
sections (a) and (b) shall take effect on the date of the enact-
ment of this Act and shall apply with respect to commu-
nications 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 effective 
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, complies with 
a reasonable good faith interpretation of such amendments. 
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Union Calendar No. 443 
115TH CONGRESS 
2D SESSION 
H. R. 2823 
[Report No. 115–371, Part I] 
A BILL 
To amend the Employee Retirement Income Secu-
rity 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. 
MARCH 5, 2018 
The Committee on Ways and Means discharged; com-
mitted to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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