CPFA EXAM 2025/2026 ACTUAL COMPLETE REAL EXAM
QUESTIONS WITH ACCURATE ANSWERS | MULTIPLE
CHOICES |2025 LATEST VERSION!!
June is a Plan Sponsor of a small plan and decided she'll be
acting as the sole
fiduciary of the plan. All of the following are her
responsibilities, EXCEPT:
A) Give investment advice to participants
B) Fill the role of Plan Administrator
C) Follow a prudent process when hiring service providers
D) Sign and file the Form 5500 - ANSWER-A) Give investment
advice to participants
Under ERISA, the Plan Administrator has the following roles,
EXCEPT:
A) Providing participants with a summary plan description
B) Redesigning the plan's employer matching contribution
formula
,C) Distributing required notices to participants
D) Providing the plan document to participants who request a
copy - ANSWERB) Redesigning the plan's employer
matching contribution formula
Under ERISA, all of the following are Plan Trustee
responsibilities, EXCEPT:
A) Monitor the investment manager whom the Plan Trustee
hired.
B) Oversee the Plan Administrator.
C) Delegate specific investment duties to a service provider and
monitor the service provider's performance.
D) Follow participant directions for the investment of
contributions, unless the instructions conflict with ERISA. -
ANSWER-B) Oversee the Plan Administrator.
The JKL Company recently established a 401(k) Plan and hired
Larry as its plan
advisor. The Plan Committee, with Larry's assistance, has
just finalized the
investment policy statement. The next step is to start the
investment selection
process. Larry is planning to discuss all the following
issues regarding
,investment selection,
EXCEPT:
A) The investment line-up should be diversified.
B) Self-directed brokerage accounts may be offered only to
investment savvy participants.
C) Investment fees must be reasonable.
D) The investments selected should represent asset classes
across a risk/reward spectrum. - ANSWER-B) Self-directed
brokerage accounts may be offered only to investment savvy
participants.
A new client with a 401(k) plan wants to add funds to enhance
the diversification of the Plan. Which of the following tasks
should be completed first when considering adding funds to
the plan?
A) Prepare the new 404(a)(5) disclosures.
B) Establish dates for employee meetings to explain the
investment changes. C) Review the investment policy
statement and confirm the asset classes permitted in the
plan.
D) Order new enrollment kits. - ANSWER-C) Review the
investment policy statement and confirm the asset classes
permitted in the plan.
, Which of the following parties typically maintains the
investment policy
statement?
A) Plan
advisor
B)
CFO
C) Plan
accountant
D) HR manager - ANSWER-A) Plan
advisor
All the following statements regarding the timing of
investment meetings are
TRUE,
EXCEPT:
A) An investment policy statement must specifically state how
often the investments are reviewed.
B) A plan advisor may assist in the scheduling of investment
meetings.
C) An investment policy statement should be reviewed at least
annually.
QUESTIONS WITH ACCURATE ANSWERS | MULTIPLE
CHOICES |2025 LATEST VERSION!!
June is a Plan Sponsor of a small plan and decided she'll be
acting as the sole
fiduciary of the plan. All of the following are her
responsibilities, EXCEPT:
A) Give investment advice to participants
B) Fill the role of Plan Administrator
C) Follow a prudent process when hiring service providers
D) Sign and file the Form 5500 - ANSWER-A) Give investment
advice to participants
Under ERISA, the Plan Administrator has the following roles,
EXCEPT:
A) Providing participants with a summary plan description
B) Redesigning the plan's employer matching contribution
formula
,C) Distributing required notices to participants
D) Providing the plan document to participants who request a
copy - ANSWERB) Redesigning the plan's employer
matching contribution formula
Under ERISA, all of the following are Plan Trustee
responsibilities, EXCEPT:
A) Monitor the investment manager whom the Plan Trustee
hired.
B) Oversee the Plan Administrator.
C) Delegate specific investment duties to a service provider and
monitor the service provider's performance.
D) Follow participant directions for the investment of
contributions, unless the instructions conflict with ERISA. -
ANSWER-B) Oversee the Plan Administrator.
The JKL Company recently established a 401(k) Plan and hired
Larry as its plan
advisor. The Plan Committee, with Larry's assistance, has
just finalized the
investment policy statement. The next step is to start the
investment selection
process. Larry is planning to discuss all the following
issues regarding
,investment selection,
EXCEPT:
A) The investment line-up should be diversified.
B) Self-directed brokerage accounts may be offered only to
investment savvy participants.
C) Investment fees must be reasonable.
D) The investments selected should represent asset classes
across a risk/reward spectrum. - ANSWER-B) Self-directed
brokerage accounts may be offered only to investment savvy
participants.
A new client with a 401(k) plan wants to add funds to enhance
the diversification of the Plan. Which of the following tasks
should be completed first when considering adding funds to
the plan?
A) Prepare the new 404(a)(5) disclosures.
B) Establish dates for employee meetings to explain the
investment changes. C) Review the investment policy
statement and confirm the asset classes permitted in the
plan.
D) Order new enrollment kits. - ANSWER-C) Review the
investment policy statement and confirm the asset classes
permitted in the plan.
, Which of the following parties typically maintains the
investment policy
statement?
A) Plan
advisor
B)
CFO
C) Plan
accountant
D) HR manager - ANSWER-A) Plan
advisor
All the following statements regarding the timing of
investment meetings are
TRUE,
EXCEPT:
A) An investment policy statement must specifically state how
often the investments are reviewed.
B) A plan advisor may assist in the scheduling of investment
meetings.
C) An investment policy statement should be reviewed at least
annually.
