I 
117TH CONGRESS 
2D SESSION 
H. R. 7151 
To amend the Investment Advisers Act of 1940 and the Employment Retire-
ment Income Security Act of 1974 to specify that only pecuniary factors 
are to be taken into account in determining best interest, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 18, 2022 
Mr. BARR (for himself and Mr. ALLEN) introduced the following bill; which 
was referred to the Committee on Education and Labor, and in addition 
to the Committee on Financial Services, 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 Investment Advisers Act of 1940 and the 
Employment Retirement Income Security Act of 1974 
to specify that only pecuniary factors are to be taken 
into account in determining best interest, 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 ‘‘Ensuring Sound Guid-
ance Act’’. 
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SEC. 2. INVESTMENT ADVISORS ACT OF 1940 AMENDMENT. 
(a) IN GENERAL.—Section 211(g) of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b–11(g)) is amended 
by adding at the end the following: 
‘‘(3) BEST
INTEREST
BASED
ON
PECUNIARY 
FACTORS.—For purposes of paragraph (1), the best 
interest of a customer shall be determined using only 
pecuniary factors, unless the customer specifically 
requests that non-pecuniary factors be considered.’’. 
(b) RULEMAKING.—Not later than the end of the 12- 
month period beginning on the date of enactment of this 
Act, the Securities and Exchange Commission shall revise 
or issue such rules as may be necessary to implement the 
amendment made by subsection (a). 
SEC. 3. EMPLOYEE RETIREMENT INCOME SECURITY ACT 
OF 1974 AMENDMENT. 
Section 404(a) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1104(a)) is amended by 
adding at the end the following: 
‘‘(3) INTEREST
BASED
ON
PECUNIARY
FAC-
TORS.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), a fiduciary of a plan shall be consid-
ered to act solely in the interest of the partici-
pants and beneficiaries of the plan with respect 
to a plan investment or investment course of ac-
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tion only if the fiduciary’s action with respect 
to such investment is based only on pecuniary 
factors. The fiduciary may not subordinate the 
interests of the participants and beneficiaries in 
their retirement income or financial benefits 
under the plan to other objectives and may not 
sacrifice investment return or take on addi-
tional investment risk to promote non-pecuniary 
benefits or goals. The weight given to any pecu-
niary factor by a fiduciary should appropriately 
reflect a prudent assessment of the impact of 
such factor on risk-return. 
‘‘(B) INVESTMENT
ALTERNATIVES
FOR 
PARTICIPANT-DIRECTED
INDIVIDUAL
ACCOUNT 
PLANS.—In selecting investment options for a 
pension plan described in subsection (c)(1)(A), 
a fiduciary is not prohibited from considering or 
including an investment option on the basis 
that such investment option promotes non-pecu-
niary benefits or goals, provided that the fidu-
ciary— 
‘‘(i) satisfies the requirements of 
paragraph (1) and subparagraph (A) in 
considering or including any such invest-
ment option; and 
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