CPFA EXAM 2026 ACTUAL TEST PAPER
QUESTIONS SOLUTIONS VERIFIED COMPLETE
STUDY PACKAGE
◉ 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.
◉ 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.
◉ 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 provider. They should also review the service agreement,
document the decision process, and have a service agreement with
the 3(21) advisor.
◉ A 3(21) advisor fiduciary is considered a.
Answer: fiduciary to the plan, but different than advisors working as
3(38) fiduciaries, it is rarely named in the plan document.
◉ The service agreement between the plan sponsor and the TPA is
what determines if.
QUESTIONS SOLUTIONS VERIFIED COMPLETE
STUDY PACKAGE
◉ 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.
◉ 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.
◉ 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 provider. They should also review the service agreement,
document the decision process, and have a service agreement with
the 3(21) advisor.
◉ A 3(21) advisor fiduciary is considered a.
Answer: fiduciary to the plan, but different than advisors working as
3(38) fiduciaries, it is rarely named in the plan document.
◉ The service agreement between the plan sponsor and the TPA is
what determines if.
