CPFA LICENSE EXAM CERTIFIED PLAN
FIDUCIARY EXAM 2026 ALL QUESTIONS
AND CORRECT DETAILED ANSWERS
|RATED A+ |HIGHLY RECOMMENDED BY
EXPERTS |NEW AND REVISED
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 - ANSWER- a TPA will work as a 3(16) fiduciary Plan
Administrator.
ERISA 3(16) fiduciaries serve as the - ANSWER- "Plan Administrator"
and are responsible for administrative responsibilities in the plan. These
include assuring the plan operation remains in compliance with the plan
,document, providing administrative and compliance documents for the
fiduciary file and assuring that employee notices are drafted and
distributed.
ERISA 3(21) and 3(38) fiduciaries serve as - ANSWER- investment
fiduciaries and their main duty under ERISA is to provide investment
advice.
3(38) fiduciaries may also serve as the - ANSWER- named investment
manager for the plan, and unlike 3(21) investment advice fiduciaries,
will have discretionary control over plan investments.
Employee education through enrollment meetings is performed by -
ANSWER- retirement plan advisors, including non-fiduciary, 3(21), and
3(38) fiduciary advisors. Assisting with fiduciary file documentation is
another function that all retirement plan advisors, both fiduciary and
non-fiduciary are likely to perform.
As the advisor, you can assist the plan sponsor by - ANSWER- by
asking about documents he or she may be missing from the fiduciary
file.
For example:
Are there any plan amendments?
Does he or she have copies of the required participant notices (including
participant fee disclosure) and account statements?
Where are the 408(b)(2) fee disclosure notices?
, Does he or she have evidence that looked at the fee disclosure to
determine if plan fees are reasonable?
You can also assist the plan sponsor in identifying the - ANSWER- plan
service providers who may have copies of these documents, and assist
him in setting up a fiduciary file.
You may also want to show the sponsor a - ANSWER- sample DOL
investigation letter, so he is aware of what the DOL might ask in
advance of an investigation. You can point out that unsigned documents
or amendments and/or missing and incomplete plan documentation may
put him at risk in an audit.
You should assure the that Plan Sponsor is aware of - ANSWER- both
your role as an investment fiduciary regulations and what documentation
she may need to review based on specific financial institution
requirements.
The advisor or the CPA is not responsible for - ANSWER- the required
plan amendments. The TPA or ERISA counsel can prepare the required
amendment.
The plan docs need to be amended when - ANSWER- there is a law
change that impacts the plan, or when the fiduciaries are changing the
plan provisions.
FIDUCIARY EXAM 2026 ALL QUESTIONS
AND CORRECT DETAILED ANSWERS
|RATED A+ |HIGHLY RECOMMENDED BY
EXPERTS |NEW AND REVISED
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 - ANSWER- a TPA will work as a 3(16) fiduciary Plan
Administrator.
ERISA 3(16) fiduciaries serve as the - ANSWER- "Plan Administrator"
and are responsible for administrative responsibilities in the plan. These
include assuring the plan operation remains in compliance with the plan
,document, providing administrative and compliance documents for the
fiduciary file and assuring that employee notices are drafted and
distributed.
ERISA 3(21) and 3(38) fiduciaries serve as - ANSWER- investment
fiduciaries and their main duty under ERISA is to provide investment
advice.
3(38) fiduciaries may also serve as the - ANSWER- named investment
manager for the plan, and unlike 3(21) investment advice fiduciaries,
will have discretionary control over plan investments.
Employee education through enrollment meetings is performed by -
ANSWER- retirement plan advisors, including non-fiduciary, 3(21), and
3(38) fiduciary advisors. Assisting with fiduciary file documentation is
another function that all retirement plan advisors, both fiduciary and
non-fiduciary are likely to perform.
As the advisor, you can assist the plan sponsor by - ANSWER- by
asking about documents he or she may be missing from the fiduciary
file.
For example:
Are there any plan amendments?
Does he or she have copies of the required participant notices (including
participant fee disclosure) and account statements?
Where are the 408(b)(2) fee disclosure notices?
, Does he or she have evidence that looked at the fee disclosure to
determine if plan fees are reasonable?
You can also assist the plan sponsor in identifying the - ANSWER- plan
service providers who may have copies of these documents, and assist
him in setting up a fiduciary file.
You may also want to show the sponsor a - ANSWER- sample DOL
investigation letter, so he is aware of what the DOL might ask in
advance of an investigation. You can point out that unsigned documents
or amendments and/or missing and incomplete plan documentation may
put him at risk in an audit.
You should assure the that Plan Sponsor is aware of - ANSWER- both
your role as an investment fiduciary regulations and what documentation
she may need to review based on specific financial institution
requirements.
The advisor or the CPA is not responsible for - ANSWER- the required
plan amendments. The TPA or ERISA counsel can prepare the required
amendment.
The plan docs need to be amended when - ANSWER- there is a law
change that impacts the plan, or when the fiduciaries are changing the
plan provisions.
