I 
118TH CONGRESS 
1ST SESSION H. R. 4237 
To amend the Investment Advisers Act of 1940 and the Employee Retirement 
Income Security Act of 1974 to specify requirements concerning the 
consideration of pecuniary and non-pecuniary factors. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 21, 2023 
Mr. BARR (for himself, Mr. ALLEN, and Mr. HUIZENGA) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services, 
and in addition to the Committee on Education and the Workforce, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To amend the Investment Advisers Act of 1940 and the 
Employee Retirement Income Security Act of 1974 to 
specify requirements concerning the consideration of pe-
cuniary and non-pecuniary factors. 
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.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the best interest of a customer shall 
be determined using pecuniary factors, which 
may not be subordinated to or limited by non- 
pecuniary factors, unless the customer provides 
informed consent, in writing, that such non-pe-
cuniary factors be so considered. 
‘‘(B) DISCLOSURE
OF
PECUNIARY
FAC-
TORS.—If a customer provides a broker, dealer, 
or investment adviser with the informed consent 
to consider non-pecuniary factors described 
under subparagraph (A), the broker, dealer, or 
investment adviser shall also— 
‘‘(i) disclose the expected pecuniary 
effects to the customer over a time period 
selected by the customer and not to exceed 
three years; and 
‘‘(ii) at the end of the time period de-
scribed under clause (i), disclose, by com-
parison to a reasonably comparable index 
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or basket of securities selected by the cus-
tomer, the actual pecuniary effects of that 
time period, including all fees, costs, and 
other expenses incurred to so consider non- 
pecuniary factors. 
‘‘(C) PECUNIARY FACTOR DEFINED.—The 
term ‘pecuniary factor’ has the meaning given 
such term in section 404(a)(3)(D) of the Em-
ployment Retirement Income Security Act of 
1974 (29 U.S.C. 1104(a)(3)(D)).’’. 
(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). 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to actions taken by a broker, 
dealer, or investment adviser on or after the date that is 
12 months after the date of enactment of this Act. 
SEC. 3. EMPLOYEE RETIREMENT INCOME SECURITY ACT 
OF 1974 AMENDMENT. 
(a) IN GENERAL.—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: 
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‘‘(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 an investment or investment course of action 
only if the fiduciary’s action with respect to 
such investment or investment course of action 
is based only on pecuniary factors (except as 
provided in subparagraph (B)). The fiduciary 
may not subordinate the interests of the partici-
pants and beneficiaries in their retirement in-
come or financial benefits under the plan to 
other objectives and may not sacrifice invest-
ment return or take on additional investment 
risk to promote non-pecuniary benefits or goals. 
The weight given to any pecuniary factor by a 
fiduciary should appropriately reflect a prudent 
assessment of the impact of such factor on risk 
and return. 
‘‘(B) USE
OF
NON-PECUNIARY
FACTORS 
FOR
INVESTMENT
ALTERNATIVES.—Notwith-
standing paragraph (A), if a fiduciary is unable 
to distinguish between or among investment al-
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