Ever hear of a ‘lay fiduciary’? There are 17.5 million of them

Group says nonprofessional plan fiduciaries who oversee assets in pension plans, foundations, endowments and trusts often don’t understand their responsibilities

While there are 17.5 million men and women who have the legal responsibility for managing $26.6 trillion in assets held in pension plans, foundations, endowments and personal trusts, many of these so-called “lay fiduciaries” often don’t understand what they are supposed to do.

That’s a key finding of a survey conducted by the Center for Board Certified Fiduciaries, a Stonington, Connecticut-based group that will be awarding a new designation, Board Certified Fiduciary, aimed at educating lay people who take on a fiduciary responsibility.

“The CBCF will be affiliating with a leading university to provide a graduate-level certificate in fiduciary leadership, stewardship and governance,” the group said in a release, adding that, over time, it will develop curricula for the first graduate-level programs with a concentration in fiduciary responsibility.

According to the report, close to 3 million lay fiduciaries manage about $20 trillion in assets in retirement plans, while almost 13 million managed about $6 trillion in foundations and endowments, and about 1.6 million oversee more than $172 billion in private trusts.

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