Named Fiduciary

AAA

DEFINITION of 'Named Fiduciary'

The fiduciary that holds responsibility over a given financial account. The named fiduciary is responsible for operating and administering a qualified retirement plan under the Employee Retirement Income Security Act (ERISA), which is meant to protect participants in private-sector retirement plans. The named fiduciary is required to act in the plan participants' best interests. However, the named fiduciary is not required to be a financial expert, so it may choose to appoint an investment manager to oversee the plan's assets.

INVESTOPEDIA EXPLAINS 'Named Fiduciary'

The named fiduciary is just one of several types of fiduciaries involved in running a qualified retirement plan. Others include the plan administrator, trustee, investment manager and investment advisor. A fiduciary who mismanages a plan can be held personally liable.

RELATED TERMS
  1. 401(k) Plan

    A qualified plan established by employers to which eligible employees ...
  2. Employee Retirement Income Security ...

    The Employee Retirement Income Security Act of 1974 (ERISA) protects ...
  3. Fiduciary

    1. A person legally appointed and authorized to hold assets in ...
  4. Department Of Labor - DOL

    A U.S government cabinet body responsible for standards in occupational ...
  5. Fiduciary Negligence

    A professional malpractice in which a person fails to honor his ...
  6. Non-Qualified Plan

    Any type of tax-deferred, employer-sponsored retirement plan ...
Related Articles
  1. Tips For Moving Retirement Plan Assets
    Taxes

    Tips For Moving Retirement Plan Assets

  2. Top 9 Benefits Of A 403(b) Plan
    Retirement

    Top 9 Benefits Of A 403(b) Plan

  3. Hedging With Puts And Calls
    Markets

    Hedging With Puts And Calls

  4. 5 Ways To Lose Your Retirement Nest ...
    Savings

    5 Ways To Lose Your Retirement Nest ...

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center