The term “fiduciary” is defined by the Department of Labor under Section 3(21) of the Employee Retirement Income Security Act (ERISA). A 3(21) ERISA fiduciary is someone who:
- Provides discretionary investment management to the plan or participant, or provides non-discretionary investment advice to the plan or a participant.
- Provides advice that relates to specific securities (as opposed to general asset allocation), is provided on a regular basis, and is provided pursuant to a mutual agreement or understanding (whether written or not) with the plan or participant.
- Provides advice that is the primary basis for investment decisions of the plan or participant and is individualized based on the particular needs of the plan or participant.
