NAPA CPFA Certification
Exam 2026 | Certified Plan
Fiduciary Actual Exam | All
Questions and Correct
Answers | Graded A+ | Verified
Answers | Just Released
Explain ERISA exclusive purpose and ERISA prudence rule - answer- The Exclusive
Purpose Rule: A fiduciary must act solely in the
best interest of plan participants.
The Fiduciary Standard of Care: Prudence, Loyalty, Diversification, Follow the Plan
Document
Identify actions that might establish a fiduciary relationship - answer- assuming
significant control over another person's property or finances, having a high degree of
trust and confidence placed in you by another party, making decisions on behalf of
someone else with their best interests in mind, providing professional advice in a field
where expertise is required, managing assets on behalf of another person, and entering
into a legal agreement where one party is explicitly designated as a fiduciary, such as a
trust or will.
Identify named fiduciaries - answer- Persons or entities specifically
named in the plan document
Explain roles and responsibilities of named fiduciaries - answer- Discretionary authority
over
management or the
administration of the plan
Identify actions covered by the Best Interest Contract Exemption - answer-
Acknowledge fiduciary status for itself and its financial advisers;
, Adhere to basic standards of impartial conduct, including: Giving prudent advice that is
in the customer's best interest (i.e., based on the investment objectives, risk tolerance,
financial circumstances, and needs of the retirement investors, without regard to
financial or other interests of the financial institution or financial adviser); Avoiding
making misleading statements; and Charging no more than reasonable compensation
Commit to the impartial conduct standards in an enforceable contract when providing
advice to an IRA owner
Implement policies and procedures reasonably and prudently designed to prevent
violations of the impartial conduct standards
Refrain from giving or using incentives for financial advisers to act contrary to the
customer's best interest
Fairly disclose the fees, compensation, and material conflicts of interest associated with
their recommendations.
Differentiate investment advice and investment education - answer- Education =
guidance to help others makes their OWN decisions
Advice: significant detail about an employee's personal finances, goals and risk
tolerance are gathered in order to make projections.
Describe the "best interest contract exemption" under the DOL fiduciary regulation -
answer- The Best Interest Contract Exemption permits financial advisers (i.e., an
individual who is a representative of an investment adviser, broker-dealer, insurance
company, or bank or similar financial institution) and the financial institutions that
employ them to continue to rely on many current compensation and fee practices, as
long as they meet specific conditions intended to ensure that financial institutions
mitigate conflicts of interest and that they, and their financial advisers, provide
investment advice that is in the best interests of their customers.
Differentiate between 3(16), 3(21) and 3(38) fiduciaries - answer- 3(16): • Ensure plan
operates in accordance with ERISA
• Ensure plan follows its terms
• Provide participant notices/disclosures
• Sign and file Form 5500 (Annual return)
• Authorize distribution/loans
• Select and monitor service providers
• Ensure plan expenses are reasonable
3(21) - answer- 3(21): - Represents or acknowledges fiduciary status
Renders the advice pursuant to a written or verbal
agreement, arrangement, or understanding that the
advice is based on the particular investment needs
of the advice recipient, or
Directs the advice to a specific advice recipient(s)
regarding the advisability of a particular investment
or management decision
Usually advises plan sponsor or investment
Exam 2026 | Certified Plan
Fiduciary Actual Exam | All
Questions and Correct
Answers | Graded A+ | Verified
Answers | Just Released
Explain ERISA exclusive purpose and ERISA prudence rule - answer- The Exclusive
Purpose Rule: A fiduciary must act solely in the
best interest of plan participants.
The Fiduciary Standard of Care: Prudence, Loyalty, Diversification, Follow the Plan
Document
Identify actions that might establish a fiduciary relationship - answer- assuming
significant control over another person's property or finances, having a high degree of
trust and confidence placed in you by another party, making decisions on behalf of
someone else with their best interests in mind, providing professional advice in a field
where expertise is required, managing assets on behalf of another person, and entering
into a legal agreement where one party is explicitly designated as a fiduciary, such as a
trust or will.
Identify named fiduciaries - answer- Persons or entities specifically
named in the plan document
Explain roles and responsibilities of named fiduciaries - answer- Discretionary authority
over
management or the
administration of the plan
Identify actions covered by the Best Interest Contract Exemption - answer-
Acknowledge fiduciary status for itself and its financial advisers;
, Adhere to basic standards of impartial conduct, including: Giving prudent advice that is
in the customer's best interest (i.e., based on the investment objectives, risk tolerance,
financial circumstances, and needs of the retirement investors, without regard to
financial or other interests of the financial institution or financial adviser); Avoiding
making misleading statements; and Charging no more than reasonable compensation
Commit to the impartial conduct standards in an enforceable contract when providing
advice to an IRA owner
Implement policies and procedures reasonably and prudently designed to prevent
violations of the impartial conduct standards
Refrain from giving or using incentives for financial advisers to act contrary to the
customer's best interest
Fairly disclose the fees, compensation, and material conflicts of interest associated with
their recommendations.
Differentiate investment advice and investment education - answer- Education =
guidance to help others makes their OWN decisions
Advice: significant detail about an employee's personal finances, goals and risk
tolerance are gathered in order to make projections.
Describe the "best interest contract exemption" under the DOL fiduciary regulation -
answer- The Best Interest Contract Exemption permits financial advisers (i.e., an
individual who is a representative of an investment adviser, broker-dealer, insurance
company, or bank or similar financial institution) and the financial institutions that
employ them to continue to rely on many current compensation and fee practices, as
long as they meet specific conditions intended to ensure that financial institutions
mitigate conflicts of interest and that they, and their financial advisers, provide
investment advice that is in the best interests of their customers.
Differentiate between 3(16), 3(21) and 3(38) fiduciaries - answer- 3(16): • Ensure plan
operates in accordance with ERISA
• Ensure plan follows its terms
• Provide participant notices/disclosures
• Sign and file Form 5500 (Annual return)
• Authorize distribution/loans
• Select and monitor service providers
• Ensure plan expenses are reasonable
3(21) - answer- 3(21): - Represents or acknowledges fiduciary status
Renders the advice pursuant to a written or verbal
agreement, arrangement, or understanding that the
advice is based on the particular investment needs
of the advice recipient, or
Directs the advice to a specific advice recipient(s)
regarding the advisability of a particular investment
or management decision
Usually advises plan sponsor or investment
