Page:United States Statutes at Large Volume 120.djvu/984

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 953

‘‘(14) Any transaction in connection with the provision of investment advice described in section 3(21)(A)(ii) to a participant or beneficiary of an individual account plan that permits such participant or beneficiary to direct the investment of assets in their 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 (g) are met.’’. (2) REQUIREMENTS.—Section 408 of such Act is amended further by adding at the end the following new subsection: ‘‘(g) PROVISION OF INVESTMENT ADVICE TO PARTICIPANT AND BENEFICIARIES.— ‘‘(1) IN GENERAL.—The prohibitions provided in section 406 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. ‘‘(2) ELIGIBLE INVESTMENT ADVICE ARRANGEMENT.—For purposes of this subsection, the term ‘eligible investment advice arrangement’ means an arrangement— ‘‘(A) 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 paragraph (3) in connection with the provision of investment advice by a fiduciary adviser to a participant or beneficiary, and ‘‘(B) with respect to which the requirements of paragraph (4), (5), (6), (7), (8), and (9) are met. ‘‘(3) INVESTMENT ADVICE PROGRAM USING COMPUTER MODEL.— ‘‘(A) IN GENERAL.—An investment advice program meets the requirements of this paragraph if the requirements of subparagraphs (B), (C), and (D) are met. ‘‘(B) COMPUTER MODEL.—The requirements of this subparagraph are met if the investment advice provided

VerDate 14-DEC-2004

10:20 Jul 12, 2007

Jkt 059194

PO 00001

Frm 00951

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL001.109

29 USC 1108.

APPS06

PsN: PUBL001

�