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. Non-Qualified Plan

    Any type of tax-deferred, employer-sponsored retirement plan ...
  2. 401(k) Plan

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

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

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

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

    A professional malpractice in which a person fails to honor his ...
Related Articles
  1. Taxes

    Tips For Moving Retirement Plan Assets

  2. Retirement

    Top 9 Benefits Of A 403(b) Plan

  3. Markets

    Hedging With Puts And Calls

  4. Savings

    5 Ways To Lose Your Retirement Nest ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center