NAPA CPFA Certification Exam - National
Association of Plan Advisors Certified Plan
Fiduciary Advisor - 2026/2027 Edition Verified
Questions
Question 1. ERISA primarily governs which type of arrangement?
A. All personal brokerage accounts
B. Municipal bond offerings
C. Private-sector employee benefit plans
D. State income tax returns
Correct Answer: C
Rationale: ERISA (Employee Retirement Income Security Act) mainly governs private-
sector employee benefit plans, including many retirement and welfare plans . It sets
minimum standards for these plans to protect individuals in these plans.
Question 2. A plan fiduciary generally must act solely in the interest of:
A. The recordkeeper
B. The plan sponsor's owners
C. Plan participants and beneficiaries
D. The advisor's compensation model
Correct Answer: C
Rationale: ERISA's duty of loyalty, also known as the Exclusive Purpose Rule, requires
fiduciaries to act solely in the interest of participants and beneficiaries . This is the
highest standard of care in the law.
,Question 3. Which filing is commonly associated with annual reporting for many
ERISA-covered retirement plans?
A. Form W-2
B. Schedule K-1
C. Form 1040
D. Form 5500
Correct Answer: D
Rationale: Many ERISA plans must complete annual reporting through Form 5500 and
related schedules . This report provides the Department of Labor and the IRS with
information about the plan's financial condition, operations, and compliance.
Question 4. ERISA's prudence standard is generally judged based on:
A. Whether every investment always outperformed
B. The fiduciary process used at the time decisions were made
C. The sponsor's brand recognition
D. The age of the oldest participant
Correct Answer: B
Rationale: Prudence is typically evaluated by the quality of the decision-making process
rather than outcomes alone . The standard is based on the care, skill, prudence, and
diligence that a prudent person acting in a like capacity would use.
Question 5. Which of the following is most closely associated with prohibited
transaction concerns?
A. Printing participant statements
B. Self-dealing involving plan assets
C. Providing diversified menus
D. Benchmarking service fees
Correct Answer: B
,Rationale: Transactions involving conflicts such as self-dealing may create prohibited
transaction issues under ERISA . These transactions between the plan and a party-in-
interest are specifically banned.
Question 6. What is a Summary Plan Description (SPD) primarily intended to do?
A. Replace the plan document legally
B. Set market return expectations
C. Explain key plan features to participants in understandable language
D. Determine the plan's investment lineup automatically
Correct Answer: C
Rationale: The SPD is designed to communicate important plan terms and participant
rights in a clearer format . It is a required document that must be provided to
participants.
Question 7. Which bond requirement is commonly associated with persons who
handle plan funds?
A. Auto bond
B. Treasury inflation bond
C. Shareholder bond
D. ERISA fidelity bond
Correct Answer: D
Rationale: ERISA generally requires bonding for persons who handle plan funds to
protect against loss from fraud or dishonesty . This is a mandatory federal requirement.
Question 8. What is the relationship between the CPFA credential and the QPFC
credential?
, A. They are completely different credentials requiring different exams
B. The CPFA and QPFC are alternative names for the same credential; coursework and
exam are identical
C. The QPFC is a higher-level credential than the CPFA
D. The CPFA is only for plan sponsors while QPFC is for advisors
Correct Answer: B
Rationale: The QPFC (Qualified Plan Financial Consultant) is available as an alternative
to the NAPA CPFA credential. The coursework and exam are the same for both
credentials . Some broker-dealers prefer the QPFC credential.
Question 9. The CPFA credential is issued by:
A. The Department of Labor
B. FINRA
C. The National Association of Plan Advisors (NAPA)
D. The American Retirement Association (ARA)
Correct Answer: C
Rationale: The Certified Plan Fiduciary Advisor (CPFA) credential is issued by the
National Association of Plan Advisors (NAPA) . NAPA is a division of the American
Retirement Association.
Question 10. The CPFA curriculum consists of which four modules?
A. ERISA Fiduciary Roles and Responsibilities, ERISA Fiduciary Oversight, ERISA Plan
Investment Management, and ERISA Plan Management
B. Tax Planning, Estate Planning, Investment Management, and Risk Management
C. Retirement Planning, Estate Planning, Tax Planning, and Insurance Planning
D. Plan Design, Investment Selection, Participant Communication, and Compliance
Correct Answer: A
Association of Plan Advisors Certified Plan
Fiduciary Advisor - 2026/2027 Edition Verified
Questions
Question 1. ERISA primarily governs which type of arrangement?
A. All personal brokerage accounts
B. Municipal bond offerings
C. Private-sector employee benefit plans
D. State income tax returns
Correct Answer: C
Rationale: ERISA (Employee Retirement Income Security Act) mainly governs private-
sector employee benefit plans, including many retirement and welfare plans . It sets
minimum standards for these plans to protect individuals in these plans.
Question 2. A plan fiduciary generally must act solely in the interest of:
A. The recordkeeper
B. The plan sponsor's owners
C. Plan participants and beneficiaries
D. The advisor's compensation model
Correct Answer: C
Rationale: ERISA's duty of loyalty, also known as the Exclusive Purpose Rule, requires
fiduciaries to act solely in the interest of participants and beneficiaries . This is the
highest standard of care in the law.
,Question 3. Which filing is commonly associated with annual reporting for many
ERISA-covered retirement plans?
A. Form W-2
B. Schedule K-1
C. Form 1040
D. Form 5500
Correct Answer: D
Rationale: Many ERISA plans must complete annual reporting through Form 5500 and
related schedules . This report provides the Department of Labor and the IRS with
information about the plan's financial condition, operations, and compliance.
Question 4. ERISA's prudence standard is generally judged based on:
A. Whether every investment always outperformed
B. The fiduciary process used at the time decisions were made
C. The sponsor's brand recognition
D. The age of the oldest participant
Correct Answer: B
Rationale: Prudence is typically evaluated by the quality of the decision-making process
rather than outcomes alone . The standard is based on the care, skill, prudence, and
diligence that a prudent person acting in a like capacity would use.
Question 5. Which of the following is most closely associated with prohibited
transaction concerns?
A. Printing participant statements
B. Self-dealing involving plan assets
C. Providing diversified menus
D. Benchmarking service fees
Correct Answer: B
,Rationale: Transactions involving conflicts such as self-dealing may create prohibited
transaction issues under ERISA . These transactions between the plan and a party-in-
interest are specifically banned.
Question 6. What is a Summary Plan Description (SPD) primarily intended to do?
A. Replace the plan document legally
B. Set market return expectations
C. Explain key plan features to participants in understandable language
D. Determine the plan's investment lineup automatically
Correct Answer: C
Rationale: The SPD is designed to communicate important plan terms and participant
rights in a clearer format . It is a required document that must be provided to
participants.
Question 7. Which bond requirement is commonly associated with persons who
handle plan funds?
A. Auto bond
B. Treasury inflation bond
C. Shareholder bond
D. ERISA fidelity bond
Correct Answer: D
Rationale: ERISA generally requires bonding for persons who handle plan funds to
protect against loss from fraud or dishonesty . This is a mandatory federal requirement.
Question 8. What is the relationship between the CPFA credential and the QPFC
credential?
, A. They are completely different credentials requiring different exams
B. The CPFA and QPFC are alternative names for the same credential; coursework and
exam are identical
C. The QPFC is a higher-level credential than the CPFA
D. The CPFA is only for plan sponsors while QPFC is for advisors
Correct Answer: B
Rationale: The QPFC (Qualified Plan Financial Consultant) is available as an alternative
to the NAPA CPFA credential. The coursework and exam are the same for both
credentials . Some broker-dealers prefer the QPFC credential.
Question 9. The CPFA credential is issued by:
A. The Department of Labor
B. FINRA
C. The National Association of Plan Advisors (NAPA)
D. The American Retirement Association (ARA)
Correct Answer: C
Rationale: The Certified Plan Fiduciary Advisor (CPFA) credential is issued by the
National Association of Plan Advisors (NAPA) . NAPA is a division of the American
Retirement Association.
Question 10. The CPFA curriculum consists of which four modules?
A. ERISA Fiduciary Roles and Responsibilities, ERISA Fiduciary Oversight, ERISA Plan
Investment Management, and ERISA Plan Management
B. Tax Planning, Estate Planning, Investment Management, and Risk Management
C. Retirement Planning, Estate Planning, Tax Planning, and Insurance Planning
D. Plan Design, Investment Selection, Participant Communication, and Compliance
Correct Answer: A
