Opinion ID: 578328
Heading Depth: 3
Heading Rank: 1

Heading: Subsection One

Text: 9 There is a clear difference between the language contained in subsections one and three. Subsection one imposes fiduciary status on those who exercise discretionary authority, regardless of whether such authority was ever granted. Subsection three describes those individuals who have actually been granted discretionary authority, regardless of whether such authority is ever exercised. This interpretation, though sufficiently supported by the statute's language, is further supported by Congress' intent. See H.R.Rep. No. 93-533, 93rd Cong., 2d Sess. 11, reprinted in 1974 U.S.C.C.A.N. 4639, 4649 (a fiduciary is a person who exercises any power of control ... or who has authority or responsibility to do so.) (emphasis added); H.R.Rep. No. 1280, 93rd Cong. 2d Sess., reprinted in 1974 U.S.C.C.A.N. 5038, 5103. Finally, we note this interpretation is consistent with Congress' desire that ERISA protect the interests of participants in employee benefit plans and their beneficiaries, 29 U.S.C. § 1001(b) (1988), because it imposes fiduciary status upon those who act like fiduciaries as well as those who actually are fiduciaries. Cf. Blatt v. Marshall & Lassman, 812 F.2d 810, 812-13 (2d Cir.1987) ([W]hether or not an individual or entity in an ERISA fiduciary must be determined by focusing on the function performed, rather than the title held.); Lieb v. Merril Lynch, Pierce, Fenner & Smith, 461 F.Supp. 951, 954 (E.D.Mich.1978) (When the broker has usurped actual control over a technically non-discretionary account, ... the broker owes his customer the same fiduciary duties as he would have had the account been discretionary from the moment of its creation.). Thus, the absence of any grant of authority to Bayliss does not automatically preclude a finding that he is a fiduciary; Bayliss can be found to be a fiduciary if, as described by subsection one of the definition, he exercised discretionary control over the pension plans. 3