CPFA exam ACTUAL EXAM QUESTIONS WITH
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Terms in this set (162)
Under the DOL regulation, 3(21) fiduciaries. They will act alongside other fiduciary
many advisors to service providers who are also not necessarily named
retirement plans and their in the plan document but who exercise discretionary
participants will be control over plan provisions or plan investments.
plan sponsor about hiring fiduciary service providers,
including the different roles service providers,
The advisor should including the different roles service providers may
educate the take on within the plan, how to select a qualified
candidate, and the plan sponsor's ongoing
responsibility to monitor them.
who is a fiduciary
to what extent the person is a fiduciary
The fiduciary definition has
two parts:
Clarifying fiduciary status is arguably incomplete
without addressing both.
A best practice for a a. an acknowledgment of fiduciary status
service provider's formal b. clarification as to the extent of responsibilities
description of services
might therefore include
two parts:
,As a non-fiduciary advisor, educate your client and present possible investments
you can for the Retirement Plan Committee consideration.
If you recommend a giving investment advice and are therefore a
specific fund replacement functional fiduciary to the plan.
to the plan sponsor or
plan participants, you are
considered to be
If fiduciaries of a fiduciary act
participants use your
recommendations - as
opposed to information -
to make investment
decisions, this could be
considered
As a non-fiduciary advisor, general investment reports or discussing the
you can meet with your appropriateness of the investments to the plan
client on a recurring basis without making specific investment suggestions.
(quarterly, annually, etc) if
providing
Plan fiduciaries will almost service providers for their plan under their ERISA
always have to hire "duty to obtain expert assistance."
As a best practice, the the service providers, which usually includes a TPA
advisor can help and a record keeper.
fiduciaries select:
In owner driven smaller plan sponsor's HR staff - which is likely to be one
plans, the advisor can person in working with the various plan service
assist the providers.
In larger participant driven the HR director, CFO, and the retirement plan
plans, the advisor can committee to evaluate service providers.
work with
, A 3(21) fiduciary does not investment advice fiduciary
serve as a fiduciary
investment manager, but
instead usually as
f your client wants an 3(38) fiduciary advisor.
advisor to manager plan
investments, or just the
QDIA, they can hire a
A 3(21) fiduciary advisors plan fiduciaries.
can recommend
investments but the final
decision on which
investments to choose is
up to the
A 3(16) plan administrator an investment capacity.
can take on administrative
duties for the plan but
does not act in
A non-fiduciary advisors education
can provide
The DOL is not required to the plan hires a 3(21) advisor.
be notified if
The fiduciaries should do prudent process was not followed when selecting the
a review of the service service provider. They should also review the service
provider qualifications in agreement, document the decision process, and have
order to prove a a service agreement with the 3(21) advisor.
fiduciary to the plan, but different than advisors
A 3(21) advisor fiduciary is
working as 3(38) fiduciaries, it is rarely named in the
considered a
plan document.
The service agreement a TPA will work as a 3(16) fiduciary Plan Administrator.
between the plan sponsor
and the TPA is what
determines if
COMPLETE SOLUTION GUIDE (A+ GRADED 100%
VERIFIED) LATEST VERSION 2025!!
Save
Terms in this set (162)
Under the DOL regulation, 3(21) fiduciaries. They will act alongside other fiduciary
many advisors to service providers who are also not necessarily named
retirement plans and their in the plan document but who exercise discretionary
participants will be control over plan provisions or plan investments.
plan sponsor about hiring fiduciary service providers,
including the different roles service providers,
The advisor should including the different roles service providers may
educate the take on within the plan, how to select a qualified
candidate, and the plan sponsor's ongoing
responsibility to monitor them.
who is a fiduciary
to what extent the person is a fiduciary
The fiduciary definition has
two parts:
Clarifying fiduciary status is arguably incomplete
without addressing both.
A best practice for a a. an acknowledgment of fiduciary status
service provider's formal b. clarification as to the extent of responsibilities
description of services
might therefore include
two parts:
,As a non-fiduciary advisor, educate your client and present possible investments
you can for the Retirement Plan Committee consideration.
If you recommend a giving investment advice and are therefore a
specific fund replacement functional fiduciary to the plan.
to the plan sponsor or
plan participants, you are
considered to be
If fiduciaries of a fiduciary act
participants use your
recommendations - as
opposed to information -
to make investment
decisions, this could be
considered
As a non-fiduciary advisor, general investment reports or discussing the
you can meet with your appropriateness of the investments to the plan
client on a recurring basis without making specific investment suggestions.
(quarterly, annually, etc) if
providing
Plan fiduciaries will almost service providers for their plan under their ERISA
always have to hire "duty to obtain expert assistance."
As a best practice, the the service providers, which usually includes a TPA
advisor can help and a record keeper.
fiduciaries select:
In owner driven smaller plan sponsor's HR staff - which is likely to be one
plans, the advisor can person in working with the various plan service
assist the providers.
In larger participant driven the HR director, CFO, and the retirement plan
plans, the advisor can committee to evaluate service providers.
work with
, A 3(21) fiduciary does not investment advice fiduciary
serve as a fiduciary
investment manager, but
instead usually as
f your client wants an 3(38) fiduciary advisor.
advisor to manager plan
investments, or just the
QDIA, they can hire a
A 3(21) fiduciary advisors plan fiduciaries.
can recommend
investments but the final
decision on which
investments to choose is
up to the
A 3(16) plan administrator an investment capacity.
can take on administrative
duties for the plan but
does not act in
A non-fiduciary advisors education
can provide
The DOL is not required to the plan hires a 3(21) advisor.
be notified if
The fiduciaries should do prudent process was not followed when selecting the
a review of the service service provider. They should also review the service
provider qualifications in agreement, document the decision process, and have
order to prove a a service agreement with the 3(21) advisor.
fiduciary to the plan, but different than advisors
A 3(21) advisor fiduciary is
working as 3(38) fiduciaries, it is rarely named in the
considered a
plan document.
The service agreement a TPA will work as a 3(16) fiduciary Plan Administrator.
between the plan sponsor
and the TPA is what
determines if
