(a) In general. Except as otherwise provided in Sec. 403b-1, all
assets of an employee benefit plan shall be held in trust by one or more
trustees pursuant to a written trust instrument.
(b) Specific applications. (1) The requirements of paragraph (a) of
this section will not fail to be satisfied merely because securities of
a plan are held in the name of a nominee or in street name, provided
such securities are held on behalf of the plan by:
(i) A bank or trust company that is subject to supervision by the
United States or a State, or a nominee of such bank or trust company;
(ii) A broker or dealer registered under the Securities Exchange Act
of 1934, or a nominee of such broker or dealer; or
(iii) A ``clearing agency,'' as defined in section 3(a)(23) of the
Securities Exchange Act of 1934, or its nominee.
(2) Where a corporation described in section 501(c)(2) of the
Internal Revenue Code holds property on behalf of a plan, the
requirements of paragraph (a) of this section are satisfied with respect
to such property if all the stock of such corporation is held in trust
on behalf of the plan by one or more trustees.
(3) If the assets of an entity in which a plan invests include plan
assets by reason of the plan's investment in the entity, the
requirements of paragraph (a) of this section are satisfied with respect
to such investment if the indicia of ownership of the plan's interest in
the entity are held in trust on behalf of the plan by one or more
trustees.
(c) Requirements concerning trustees. The trustee or trustees
referred to in paragraphs (a) and (b) shall be either named in the trust
instrument or in the plan instrument described in section 402(a) of the
Act, or appointed by a person who is a named fiduciary (within the
meaning of section 402(a)(2) of the Act). Upon acceptance of being named
or appointed, the trustee or trustees shall have exclusive authority and
discretion to manage and control the assets of the plan, except to the
extent that:
(1) The plan instrument or the trust instrument expressly provides
that the trustee or trustees are subject to the direction of a named
fiduciary who is not a trustee, in which case the trustees shall be
subject to the proper directions of such fiduciary which are made in
accordance with the terms of the plan and which are not contrary to the
provisions of title I of the Act of chapter XXV of this title, or
[[Page 494]]
(2) Authority to manage, acquire or dispose of assets of the plan is
delegated to one or more investment managers (within the meaning of
section 3(38) of the Act) pursuant to section 402(c)(3) of the Act.
[47 FR 21247, May 18, 1982] 
