PUBLIC LAW 109–280—AUG. 17, 2006
120 STAT. 959
‘‘(17) Any transaction in connection with the provision of investment advice described in subsection (e)(3)(B) to a participant or beneficiary in a plan and that permits such participant or beneficiary to direct the investment of plan assets in an individual account, if— ‘‘(A) the transaction is— ‘‘(i) the provision of the investment advice to the participant or beneficiary of the plan with respect to a security or other property available as an investment under the plan, ‘‘(ii) the acquisition, holding, or sale of a security or other property available as an investment under the plan pursuant to the investment advice, or ‘‘(iii) the direct or indirect receipt of fees or other compensation by the fiduciary adviser or an affiliate thereof (or any employee, agent, or registered representative of the fiduciary adviser or affiliate) in connection with the provision of the advice or in connection with an acquisition, holding, or sale of a security or other property available as an investment under the plan pursuant to the investment advice; and ‘‘(B) the requirements of subsection (f)(8) are met.’’. (2) REQUIREMENTS.—Subsection (f) of such section 4975 (relating to other definitions and special rules) is amended by adding at the end the following new paragraph: ‘‘(8) PROVISION OF INVESTMENT ADVICE TO PARTICIPANT AND BENEFICIARIES.— I24 ‘‘(A) IN GENERAL.—The prohibitions provided in subsection (c) shall not apply to transactions described in subsection (b)(14) if the investment advice provided by a fiduciary adviser is provided under an eligible investment advice arrangement. ‘‘(B) ELIGIBLE INVESTMENT ADVICE ARRANGEMENT.—For purposes of this paragraph, the term ‘eligible investment advice arrangement’ means an arrangement— ‘‘(i) which either— ‘‘(I) provides that any fees (including any commission or other compensation) received by the fiduciary adviser for investment advice or with respect to the sale, holding, or acquisition of any security or other property for purposes of investment of plan assets do not vary depending on the basis of any investment option selected, or ‘‘(II) uses a computer model under an investment advice program meeting the requirements of subparagraph (C) in connection with the provision of investment advice by a fiduciary adviser to a participant or beneficiary, and ‘‘(ii) with respect to which the requirements of subparagraphs (D), (E), (F), (G), (H), and (I) are met. ‘‘(C) INVESTMENT ADVICE PROGRAM USING COMPUTER MODEL.— ‘‘(i) IN GENERAL.—An investment advice program meets the requirements of this subparagraph if the requirements of clauses (ii), (iii), and (iv) are met. ‘‘(ii) COMPUTER MODEL.—The requirements of this clause are met if the investment advice provided under
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26 USC 4975.
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