Congress 107 - HR 2269 - Retirement Security Advice Act of 2001

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Affiliated corporations Brokers Business records Commerce Conflict of interests Consumer education Employee benefit plans Excise tax Fees Finance and Financial Sector Financial institutions Financial services Government Operations and Politics Government paperwork Information disclosure (Securities law) Insurance companies Investment advisers Labor and Employment Law Loans Pension funds Securities Tax penalties Tax-deferred compensation plans Taxation Trusts and trustees

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Summary

Retirement Security Advice Act of 2001 - Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to allow prohibited transaction exemptions under specified conditions to: (1) a fiduciary adviser's providing certain investment advice to an employee benefit plan or to a participant or beneficiary of such plan; (2) sale, acquisition, or holding of securities or other property (including any lending of money or other extension of credit associated with these) pursuant to such advice; and (3) direct or indirect receipt of fees or other compensation by the fiduciary adviser or an affiliate in connection with providing such advice.

Qualifies the following as such fiduciary advisers if they satisfy applicable laws: (1) registered investment advisers; (2) banks; (3) insurance companies; (4) registered broker-dealers; (5) affiliates of such entities; or (6) employees, agents, or registered representatives of such entities. Requires fiduciary advisers to keep for six years records necessary to determine whether the conditions of the exemption have been met.

Requires such a fiduciary adviser to disclose: (1) fees or other compensation it receives relating to the provision of investment advice or a resulting sale or acquisition of securities or other property, including from third parties; (2) any interest it has and its affiliates have in any security or other property recommended, purchased or sold; (3) any limitation placed on its ability to provide advice; (4) the advisory services offered; (5) that it is acting as a fiduciary of the plan in connection with the provision of such advice; and (6) any information required to be disclosed under applicable securities laws. Requires such disclosure to be: (1) written to be understandable by the average plan participant; and (2) maintained in currently accurate form.

Allows any such investment advice provided to participants or beneficiaries to be implemented only at their direction. Requires the terms of the transaction to be at least as favorable to the plan as an arm's length transaction would be. Requires to be reasonable any compensation received by the fiduciary adviser and its affiliates in connection with any transaction.

Requires such a fiduciary adviser to provide the plan sponsor a written acknowledgment that it is acting as a fiduciary of the plan. Exempts from the duty to monitor the specific investment advice given by the fiduciary adviser a plan sponsor or other fiduciary that arranges for a fiduciary adviser to provide investment advice to participants and beneficiaries, if certain conditions are met under this Act. Declares that the plan sponsor or other fiduciary retains the duty of prudent selection and periodic review of the fiduciary adviser. Allows plan assets to be used to pay for the expenses of providing investment advice to participants and beneficiaries.

Actions

Nov 16, 2001

Received in the Senate and Read twice and referred to the Committee on Finance.
Nov 15, 2001

Motion to reconsider laid on the table Agreed to without objection.
Nov 15, 2001

On passage Passed by recorded vote: 280 - 144 (Roll no. 442).
Nov 15, 2001

Passed/agreed to in House: On passage Passed by recorded vote: 280 - 144 (Roll no. 442).
Nov 15, 2001

Considered as unfinished business. (consideration: CR H8213-8215)
Nov 15, 2001

The previous question was ordered pursuant to the rule.
Nov 15, 2001

DEBATE - The House proceeded with one hour of debate on the amendment offered by Mr. Andrews.
Nov 15, 2001

DEBATE - Pursuant to the provisions of H. Res. 288, the House proceeded with one hour and forty minutes of debate on H.R. 2269.
Nov 15, 2001

Rule provides for consideration of H.R. 2269 with 1 hour and 40 minutes of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. In lieu of the amendments recommended by the Committee on Education and the Workforce and the Committee on Ways and Means now printed in the bill, the amendment in the nature of a substitute printed in part A of the report of the Committee on Rules accompanying this resolution shall be considered as adopted. Measure will be considered read. A specified amendment is in order.
Nov 15, 2001

Considered under the provisions of rule H. Res. 288. (consideration: CR H8190-8213; text of measure as reported in House: CR H8190-8193)
Nov 15, 2001

Rule H. Res. 288 passed House.
Nov 14, 2001

Rules Committee Resolution H. Res. 288 Reported to House. Rule provides for consideration of H.R. 2269 with 1 hour and 40 minutes of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. In lieu of the amendments recommended by the Committee on Education and the Workforce and the Committee on Ways and Means now printed in the bill, the amendment in the nature of a substitute printed in part A of the report of the Committee on Rules accompanying this resolution shall be considered as adopted. Measure will be considered read. A specified amendment is in order.
Nov 13, 2001

Placed on the Union Calendar, Calendar No. 174.
Nov 13, 2001

Reported (Amended) by the Committee on Ways and Means. H. Rept. 107-262, Part II.
Nov 9, 2001

House Committee on Ways and Means Granted an extension for further consideration ending not later than Nov. 13, 2001.
Nov 7, 2001

Ordered to be Reported (Amended) by the Yeas and Nays: 25 - 15.
Nov 7, 2001

Committee Consideration and Mark-up Session Held.
Oct 31, 2001

House Committee on Ways and Means Granted an extension for further consideration ending not later than Nov. 9, 2001.
Oct 31, 2001

Reported (Amended) by the Committee on Education and the Workforce. H. Rept. 107-262, Part I.
Oct 3, 2001

Ordered to be Reported (Amended) by the Yeas and Nays: 29 - 17.
Oct 3, 2001

Committee Consideration and Mark-up Session Held.
Aug 2, 2001

Forwarded by Subcommittee to Full Committee by Voice Vote.
Aug 2, 2001

Subcommittee Consideration and Mark-up Session Held.
Jul 17, 2001

Subcommittee Hearings Held.
Jul 17, 2001

Referred to the Subcommittee on Employer-Employee Relations.
Jun 21, 2001

Referred 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 provisions as fall within the jurisdiction of the committee concerned.
Jun 21, 2001

Introduced in House

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