1|Page
CPFA Exam Version 1 Newest Verified Exam
Preparation Newest With Complete Questions And
Correct Detailed Answers|| Newest Exam!!
What are the 4 basic fiduciary standards under the
Fiduciary Standard of Care? (Section 404) - Answer-1.)
Loyalty - (Exclusive purpose rule - Providing benefits to
participants and their beneficiaries; and defraying
reasonable expenses of administering the plan)
2.) Prudence - (Act with prudence by investigating before
making any plan decisions, documenting the decision-
making process, hiring experts when they don't possess
the knowledge or skills to make a decision, and monitoring
if their decisions are still ideal based on the exclusive
purpose rule and taking action if not
3.) Diversification - (Diversify investment in a prudent
manner in order to minimize risk; Investment factors may
include purpose of plan, amount of assets, investment
acumen of the participants and participant demographics
4.) Following the plan's governing documents - (Follow
plan documents to the extent that they are not contrary to
ERISA rules)
,2|Page
How many fiduciaries does a retirement plan? - Answer-All
retirement plans have one or more fiduciaries
Plan fiduciaries have a legal obligation to operate the plan
on behalf of ...? (Primary rule of ERISA) - Answer-Plan
participants and their beneficiaries, and not on behalf of
owners, the employer, or key employees
Who will almost always be a fiduciary to the plan? -
Answer-1.) Plan Sponsor
2.) Plan Trustee
3.) Plan Administrator
Which of these statements about personal liability is true?
- Answer-*All fiduciaries have personal liability
What does it meant to be a plan fiduciary? It means you
have the responsibility to...? - Answer-1.) Act prudently
2.) Operate the plan according to the plan document
3.) Act exclusively in the interests of the plan participants
and beneficiaries
,3|Page
4.) Run the plan for the exclusive purposes of providing
benefits and paying plan expenses
Which of the following is a fiduciary duty under ERISA? -
Answer-*Following the plan's governing documents
I have other people working as the Trustee and Plan
Administrator. As the Plan Sponsor, what are my fiduciary
duties to the plan? - Answer-1.) Prudently select and
monitor one or more named fiduciaries to operate the plan
2.) Maintain plan records
Classify the task as the responsibility of a plan
administrator or a trustee - File Form 5500? - Answer-Plan
Administrator
Classify the task as the responsibility of a plan
administrator or a trustee - Prudently select and monitor
investment managers? - Answer-Trustee
Classify the task as the responsibility of a plan
administrator or a trustee - Provide participant fee
disclosures? - Answer-Plan Administrator
, 4|Page
Classify the task as the responsibility of a plan
administrator or a trustee - Provide Participant Benefit
Statements? - Answer-Plan Administrator
Classify the task as the responsibility of a plan
administrator or a trustee - Pursue monies owed to the
plan? - Answer-Trustee
Classify the task as the responsibility of a plan
administrator or a trustee - Serve as a member of an
investment committee? - Answer-Trustee
If plan trustee or/and plan administrator are not named in
the Plan Document then who assumes their roles? -
Answer-Plan Sponsor
What is best practice for a service provider's formal
description of services? - Answer-1.) An acknowledgement
of fiduciary status
2.) Clarification as to the extent of responsibilities
CPFA Exam Version 1 Newest Verified Exam
Preparation Newest With Complete Questions And
Correct Detailed Answers|| Newest Exam!!
What are the 4 basic fiduciary standards under the
Fiduciary Standard of Care? (Section 404) - Answer-1.)
Loyalty - (Exclusive purpose rule - Providing benefits to
participants and their beneficiaries; and defraying
reasonable expenses of administering the plan)
2.) Prudence - (Act with prudence by investigating before
making any plan decisions, documenting the decision-
making process, hiring experts when they don't possess
the knowledge or skills to make a decision, and monitoring
if their decisions are still ideal based on the exclusive
purpose rule and taking action if not
3.) Diversification - (Diversify investment in a prudent
manner in order to minimize risk; Investment factors may
include purpose of plan, amount of assets, investment
acumen of the participants and participant demographics
4.) Following the plan's governing documents - (Follow
plan documents to the extent that they are not contrary to
ERISA rules)
,2|Page
How many fiduciaries does a retirement plan? - Answer-All
retirement plans have one or more fiduciaries
Plan fiduciaries have a legal obligation to operate the plan
on behalf of ...? (Primary rule of ERISA) - Answer-Plan
participants and their beneficiaries, and not on behalf of
owners, the employer, or key employees
Who will almost always be a fiduciary to the plan? -
Answer-1.) Plan Sponsor
2.) Plan Trustee
3.) Plan Administrator
Which of these statements about personal liability is true?
- Answer-*All fiduciaries have personal liability
What does it meant to be a plan fiduciary? It means you
have the responsibility to...? - Answer-1.) Act prudently
2.) Operate the plan according to the plan document
3.) Act exclusively in the interests of the plan participants
and beneficiaries
,3|Page
4.) Run the plan for the exclusive purposes of providing
benefits and paying plan expenses
Which of the following is a fiduciary duty under ERISA? -
Answer-*Following the plan's governing documents
I have other people working as the Trustee and Plan
Administrator. As the Plan Sponsor, what are my fiduciary
duties to the plan? - Answer-1.) Prudently select and
monitor one or more named fiduciaries to operate the plan
2.) Maintain plan records
Classify the task as the responsibility of a plan
administrator or a trustee - File Form 5500? - Answer-Plan
Administrator
Classify the task as the responsibility of a plan
administrator or a trustee - Prudently select and monitor
investment managers? - Answer-Trustee
Classify the task as the responsibility of a plan
administrator or a trustee - Provide participant fee
disclosures? - Answer-Plan Administrator
, 4|Page
Classify the task as the responsibility of a plan
administrator or a trustee - Provide Participant Benefit
Statements? - Answer-Plan Administrator
Classify the task as the responsibility of a plan
administrator or a trustee - Pursue monies owed to the
plan? - Answer-Trustee
Classify the task as the responsibility of a plan
administrator or a trustee - Serve as a member of an
investment committee? - Answer-Trustee
If plan trustee or/and plan administrator are not named in
the Plan Document then who assumes their roles? -
Answer-Plan Sponsor
What is best practice for a service provider's formal
description of services? - Answer-1.) An acknowledgement
of fiduciary status
2.) Clarification as to the extent of responsibilities
