In a 3(21) investment advice arrangement, who has final decision-making authority?

• A. The investment adviser has final decision-making authority
• B. The plan's named fiduciary has final decision-making authority
• C. The participants vote on investment choices
• D. Investment advice is provided with final decision-making resting with the plan's named fiduciary

Answer: (D)

In a 3(21) investment advice setup, the investment adviser provides expert guidance and recommendations, but the plan’s named fiduciary keeps the final say on investments. The adviser helps analyze options, monitor fund performance, and propose allocations, yet the ultimate responsibility and authority to decide and implement the investment lineup rests with the plan’s named fiduciary. This separation ensures professional input is used, while the fiduciary retains accountability under ERISA for prudent investment decisions. Participants don’t vote on investments, and while the adviser’s advice is considered, it does not override the fiduciary’s authority to approve or adjust the plan’s investments.