Updates federal securities rules so certain retirement vehicles — including some 403(b)(7) custodial accounts, common/collective trust arrangements, and specified separate accounts — are not treated as investment companies under the Investment Company Act, Securities Act, and Exchange Act. It also adds a rule that an employer or plan fiduciary (or a person acting for the employer) must review and approve each investment alternative before offering it to plan participants in the specified situations.

The change narrows which retirement-plan products count as registered investment companies, alters related statutory language across three securities laws, and shifts some compliance responsibilities to plan sponsors and fiduciaries while reducing certain registration and reporting burdens for the affected vehicles.