DEFINITION of 'Named Fiduciary'

The fiduciary that holds responsibility over a given financial account. The named fiduciary is responsible for operating and administering a qualified retirement plan under the Employee Retirement Income Security Act (ERISA), which is meant to protect participants in private-sector retirement plans. The named fiduciary is required to act in the plan participants' best interests. However, the named fiduciary is not required to be a financial expert, so it may choose to appoint an investment manager to oversee the plan's assets.

BREAKING DOWN 'Named Fiduciary'

The named fiduciary is just one of several types of fiduciaries involved in running a qualified retirement plan. Others include the plan administrator, trustee, investment manager and investment advisor. A fiduciary who mismanages a plan can be held personally liable.

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