CPFA exam ACTUAL EXAM TEST
QUESTIONS & ANSWERS (A+ GRADED
100% VERIFIED) 2025 LATEST!!
Under the DOL regulation, many advisors to retirement plans and their participants
will be - ANSWER✔✔-3(21) fiduciaries. They will act alongside other fiduciary service
providers who are also not necessarily named in the plan document but who exercise
discretionary control over plan provisions or plan investments.
The advisor should educate the - ANSWER✔✔-plan sponsor about hiring fiduciary
service providers, including the different roles service providers, including the different
roles service providers may take on within the plan, how to select a qualified candidate,
and the plan sponsor's ongoing responsibility to monitor them.
The fiduciary definition has two parts: - ANSWER✔✔-who is a fiduciary
to what extent the person is a fiduciary
Clarifying fiduciary status is arguably incomplete without addressing both.
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,A best practice for a service provider's formal description of services might therefore
include two parts: - ANSWER✔✔-a. an acknowledgment of fiduciary status
b. clarification as to the extent of responsibilities
As a non-fiduciary advisor, you can - ANSWER✔✔-educate your client and present
possible investments for the Retirement Plan Committee consideration.
If you recommend a specific fund replacement to the plan sponsor or plan participants,
you are considered to be - ANSWER✔✔-giving investment advice and are therefore a
functional fiduciary to the plan.
If fiduciaries of participants use your recommendations - as opposed to information - to
make investment decisions, this could be considered - ANSWER✔✔-a fiduciary act
As a non-fiduciary advisor, you can meet with your client on a recurring basis
(quarterly, annually, etc) if providing - ANSWER✔✔-general investment reports or
discussing the appropriateness of the investments to the plan without making specific
investment suggestions.
Plan fiduciaries will almost always have to hire - ANSWER✔✔-service providers for
their plan under their ERISA "duty to obtain expert assistance."
As a best practice, the advisor can help fiduciaries select: - ANSWER✔✔-the service
providers, which usually includes a TPA and a record keeper.
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, In owner driven smaller plans, the advisor can assist the - ANSWER✔✔-plan sponsor's
HR staff - which is likely to be one person in working with the various plan service
providers.
In larger participant driven plans, the advisor can work with - ANSWER✔✔-the HR
director, CFO, and the retirement plan committee to evaluate service providers.
A 3(21) fiduciary does not serve as a fiduciary investment manager, but instead usually
as - ANSWER✔✔-investment advice fiduciary
f your client wants an advisor to manager plan investments, or just the QDIA, they can
hire a - ANSWER✔✔-3(38) fiduciary advisor.
A 3(21) fiduciary advisors can recommend investments but the final decision on which
investments to choose is up to the - ANSWER✔✔-plan fiduciaries.
A 3(16) plan administrator can take on administrative duties for the plan but does not
act in - ANSWER✔✔-an investment capacity.
A non-fiduciary advisors can provide - ANSWER✔✔-education
The DOL is not required to be notified if - ANSWER✔✔-the plan hires a 3(21) advisor.
The fiduciaries should do a review of the service provider qualifications in order to
prove a - ANSWER✔✔-prudent process was not followed when selecting the service
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QUESTIONS & ANSWERS (A+ GRADED
100% VERIFIED) 2025 LATEST!!
Under the DOL regulation, many advisors to retirement plans and their participants
will be - ANSWER✔✔-3(21) fiduciaries. They will act alongside other fiduciary service
providers who are also not necessarily named in the plan document but who exercise
discretionary control over plan provisions or plan investments.
The advisor should educate the - ANSWER✔✔-plan sponsor about hiring fiduciary
service providers, including the different roles service providers, including the different
roles service providers may take on within the plan, how to select a qualified candidate,
and the plan sponsor's ongoing responsibility to monitor them.
The fiduciary definition has two parts: - ANSWER✔✔-who is a fiduciary
to what extent the person is a fiduciary
Clarifying fiduciary status is arguably incomplete without addressing both.
OLIVIA GREENWAYS© 2025, ALL RIGHTS RESRVED 1
,A best practice for a service provider's formal description of services might therefore
include two parts: - ANSWER✔✔-a. an acknowledgment of fiduciary status
b. clarification as to the extent of responsibilities
As a non-fiduciary advisor, you can - ANSWER✔✔-educate your client and present
possible investments for the Retirement Plan Committee consideration.
If you recommend a specific fund replacement to the plan sponsor or plan participants,
you are considered to be - ANSWER✔✔-giving investment advice and are therefore a
functional fiduciary to the plan.
If fiduciaries of participants use your recommendations - as opposed to information - to
make investment decisions, this could be considered - ANSWER✔✔-a fiduciary act
As a non-fiduciary advisor, you can meet with your client on a recurring basis
(quarterly, annually, etc) if providing - ANSWER✔✔-general investment reports or
discussing the appropriateness of the investments to the plan without making specific
investment suggestions.
Plan fiduciaries will almost always have to hire - ANSWER✔✔-service providers for
their plan under their ERISA "duty to obtain expert assistance."
As a best practice, the advisor can help fiduciaries select: - ANSWER✔✔-the service
providers, which usually includes a TPA and a record keeper.
OLIVIA GREENWAYS© 2025, ALL RIGHTS RESRVED 2
, In owner driven smaller plans, the advisor can assist the - ANSWER✔✔-plan sponsor's
HR staff - which is likely to be one person in working with the various plan service
providers.
In larger participant driven plans, the advisor can work with - ANSWER✔✔-the HR
director, CFO, and the retirement plan committee to evaluate service providers.
A 3(21) fiduciary does not serve as a fiduciary investment manager, but instead usually
as - ANSWER✔✔-investment advice fiduciary
f your client wants an advisor to manager plan investments, or just the QDIA, they can
hire a - ANSWER✔✔-3(38) fiduciary advisor.
A 3(21) fiduciary advisors can recommend investments but the final decision on which
investments to choose is up to the - ANSWER✔✔-plan fiduciaries.
A 3(16) plan administrator can take on administrative duties for the plan but does not
act in - ANSWER✔✔-an investment capacity.
A non-fiduciary advisors can provide - ANSWER✔✔-education
The DOL is not required to be notified if - ANSWER✔✔-the plan hires a 3(21) advisor.
The fiduciaries should do a review of the service provider qualifications in order to
prove a - ANSWER✔✔-prudent process was not followed when selecting the service
OLIVIA GREENWAYS© 2025, ALL RIGHTS RESRVED 3
