1|Page
CPFA Exam Version 2 Newest Verified Exam
Preparation Newest With Complete Questions And
Correct Detailed Answers|| Newest Exam!!!
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."
,2|Page
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.
,3|Page
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.
, 4|Page
The service agreement between the plan sponsor and the
TPA is what determines if - Answer-a TPA will work as a
3(16) fiduciary Plan Administrator.
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.
CPFA Exam Version 2 Newest Verified Exam
Preparation Newest With Complete Questions And
Correct Detailed Answers|| Newest Exam!!!
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."
,2|Page
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.
,3|Page
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.
, 4|Page
The service agreement between the plan sponsor and the
TPA is what determines if - Answer-a TPA will work as a
3(16) fiduciary Plan Administrator.
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.
