SVIA

Glossary

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FASB

See Financial Accounting Standards Board.

FASB Statement of Position (FSP) AAG INV-1

FSP AAG INV-1 defines the rules under which book value accounting may be used for the investment contracts issued to commingled funds for defined contribution plans offered by public companies.

Fees

See expense ratio.

Fiduciary

As defined by ERISA, any person or firm who: (a) exercises any discretionary authority or discretionary control over the management of a plan or any authority or control over the management or disposition of its assets, (b) renders investment advice for a fee with respect to the funds or property of the plan, or has the authority or responsibility to do so, or (c) has any discretionary authority or discretionary responsibility in the administration of the plan. Under ERISA, fiduciaries have potential legal liability if they fail to follow proper procedures or are negligent in the conduct of their assigned responsibilities, or if they otherwise breach their fiduciary duties under ERISA (including if they cause the plan to engage in a non-exempt prohibited transaction).

Financial Accounting Standards Board (FASB)

The FASB is a private, not-for-profit, independent organization whose primary purpose is to develop generally accepted accounting principles (GAAP) for publicly held companies within the United States. The SEC, which has legal authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934, designated the FASB as the organization responsible for setting such standards for public companies. The FASB is subject to oversight by the Financial Accounting Foundation (FAF), which selects the members of the FASB and the Governmental Accounting Standards Board (GASB). The FASB issued FASB Statement of Position (FSP) AAG INV-1. (See also book value accounting.)

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FSP AAG INV-1

See FASB Statement of Position (FSP) AAG INV-1.

Funding Agreement

An insurance contract under which the issuer guarantees principal, accumulated interest, and a future interest rate for a specified period of time. Unlike guaranteed investment contracts, funding agreements are not group annuity contracts and can be issued to entities other than tax-qualified plans.