ELIGIBLE INVESTMENT ADVICE
01.Core Concepts
• Exception permitting plan fiduciaries to be compensated for giving participants investment advice thr ough an eligible investment advice arrangement. • A fiduciary that is a registered investment company, bank, insurance company, or registered broker-dealer is engaged in an eligible investment advice if: • Its fee does not vary depending on the investment choices that participants make, or • Its recommendations are based on a computer model certified by an independent third party. • Exempt from prohibited transaction treatment: • The provision of investment advice, • An investment transaction, and • The direct or indirect receipt of fees or other compensation in connection with the provision of the advice or an investment transaction pursuant to the advice.