Give advice that is in the “best interest” of the retirement investor. This best interest standard has two chief components: prudence and loyalty;
- Under the prudence standard, the advice must meet a professional standard of care as specified in the text of the exemption
- Under the loyalty standard, the advice must be based on the interests of the customer, rather than the competing financial interest of the adviser or firm;
- Charge no more than reasonable compensation; and
- Make no misleading statements about investment transactions, compensation and conflicts of interest.