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The term "adequate consideration," as defined in section 3(18) of the Employee Retirement Income Security Act of 1974 (ERISA), represents a central condition of a statutory prohibited transaction exemption, at section 408(e) of ERISA, that permits an employee stock ownership plan (as defined in section 407(d)(6) of ERISA) to engage in certain transactions involving securities issued by the plan’s sponsor.  In relevant part, section 3(18)(B) of ERISA provides that in the case of an asset other than a security for which there is a generally recognized market, the term adequate consideration means the fair market value of the asset as determined in good faith by the trustee or named fiduciary pursuant to the terms of the plan and in accordance with regulations promulgated by the Secretary of Labor.  Section 346 of the SECURE 2.0 Act of 2022 directs the Secretary of Labor to establish within the Department of Labor an Employee Ownership Initiative to promote employee ownership. Section 346(c)(4)(B), in turn, provides that the Secretary of Labor, in consultation with the Secretary of the Treasury, shall issue formal guidance for acceptable standards and procedures to establish good faith fair market value for shares of a business to be acquired by an employee stock ownership plan (as defined in section 407(d)(6) of ERISA). This regulatory action relates to the Secretary of Labor’s obligations under section 346 of the SECURE 2.0 Act of 2022.