CPFA Exam Version 1 Newest Exam 2026-2027
Preparation Newest With Complete Questions And
Correct Detailed Answers| Just Released!!
Which statement regarding service providers is TRUE?
A) A TPA performs annual compliance testing.
B) A recordkeeper has the legal obligation to provide an
interpretation of a plan provision.
C) An accountant processes the "money out" for a
participant account.
D) A plan advisor is responsible for drafting annual safe
harbor notices. - ANSWER-A) A TPA performs annual
compliance testing.
,Which statement regarding bundled service arrangements
is TRUE?
A) Provides efficient contribution and distribution
processes.
B) Requires less fiduciary oversight than an unbundled
service arrangement.
C) Permits for specific single provider within the
arrangement to be easily removed and replaced with
another provider.
D) Typical arrangement involves a TPA and an insurance
company. - ANSWER-A) Provides efficient contribution
and distribution processes.
,All the following statements regarding the timing of
investment meetings are TRUE, EXCEPT:
A) An investment policy statement must specifically state
how often the investments are reviewed.
B) A plan advisor may assist in the scheduling of
investment meetings.
C) An investment policy statement should be reviewed at
least annually.
D) Smaller, owner-driven plans typically perform an annual
investment review. - ANSWER-A) An investment policy
statement must specifically state how often the
investments are reviewed.
, The BIG fund has produced investment results
consistently above its benchmarks. Recently, tobacco
company stocks were added to its portfolio. Upon hearing
the news, several members of the Retirement Plan
committee declared their opposition to the tobacco
industry and stated they wanted the fund removed from
the investment line-up. The investment policy statement
(IPS) does not include any selection criteria regarding
socially responsible investing. The Committee may take all
the following actions, EXCEPT:
A) If the Committee decides to remove the fund, the IPS
must be updated to permit this removal.
B) The Committee must consider the participants' needs.
Preparation Newest With Complete Questions And
Correct Detailed Answers| Just Released!!
Which statement regarding service providers is TRUE?
A) A TPA performs annual compliance testing.
B) A recordkeeper has the legal obligation to provide an
interpretation of a plan provision.
C) An accountant processes the "money out" for a
participant account.
D) A plan advisor is responsible for drafting annual safe
harbor notices. - ANSWER-A) A TPA performs annual
compliance testing.
,Which statement regarding bundled service arrangements
is TRUE?
A) Provides efficient contribution and distribution
processes.
B) Requires less fiduciary oversight than an unbundled
service arrangement.
C) Permits for specific single provider within the
arrangement to be easily removed and replaced with
another provider.
D) Typical arrangement involves a TPA and an insurance
company. - ANSWER-A) Provides efficient contribution
and distribution processes.
,All the following statements regarding the timing of
investment meetings are TRUE, EXCEPT:
A) An investment policy statement must specifically state
how often the investments are reviewed.
B) A plan advisor may assist in the scheduling of
investment meetings.
C) An investment policy statement should be reviewed at
least annually.
D) Smaller, owner-driven plans typically perform an annual
investment review. - ANSWER-A) An investment policy
statement must specifically state how often the
investments are reviewed.
, The BIG fund has produced investment results
consistently above its benchmarks. Recently, tobacco
company stocks were added to its portfolio. Upon hearing
the news, several members of the Retirement Plan
committee declared their opposition to the tobacco
industry and stated they wanted the fund removed from
the investment line-up. The investment policy statement
(IPS) does not include any selection criteria regarding
socially responsible investing. The Committee may take all
the following actions, EXCEPT:
A) If the Committee decides to remove the fund, the IPS
must be updated to permit this removal.
B) The Committee must consider the participants' needs.
