Prohibition on investment in certain entities

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: (3) Prohibition on investment in certain entities (A) In general It shall be a violation of paragraph (1) for a fiduciary of a plan to fail to ensure that the plan does not engage in a transaction that the fiduciary knows, or should know, will result in the plan— (i) acquiring an interest (as defined in section 103(h)) between the plan and a covered entity; (ii) lending money or extending credit to a covered entity; (iii) furnishing goods, services, or facilities to a covered entity; and (iv) transferring, directly or indirectly, to or for use by or for the benefit of a covered entity— (I) any assets of the plan; or (II) any data with respect to any participant or beneficiary of the plan. (B) Definitions (i) Covered entity For purposes of this paragraph, the term covered entity means a foreign adversary entity or sanctioned entity, as such terms are defined in section 103(h). (ii) Fiduciary For purposes of subparagraph (A)(iv)(II), the term fiduciary includes any person who exercises direct or indirect discretionary authority, responsibility, or control with respect to any participant beneficiary data. (C) Continuation of current investments In the case of a plan holding an investment in a covered entity on the date of enactment of the Protecting Americans’ Retirement Savings Act, such plan may, notwithstanding subparagraph (A), continue to hold such investment without violating paragraph (1) if the fiduciary of such plan complies with the requirements of subparagraphs (I) and (J) of section 103(b)(3). (D) Contractually obligated investments In the case of a plan that has entered into a binding agreement prior to the date of enactment of the Protecting Americans’ Retirement Savings Act obligating such plan to engage in a transaction described in subparagraph (A), if the fiduciary of such plan complies with the requirements of subparagraphs (I), (J), and (K) of section 103(b)(3), such plan may, notwithstanding subparagraph (A), fulfill the terms of such agreement without violating paragraph (1) until such agreement— (i) expires; or (ii) allows for termination..