CPFA LICENSE EXAM COMPLETE COURSE
REVIEW GUIDE
◉ June is a Plan Sponsor of a small plan and decided she'll be acting
as the sole fiduciary of the plan. All of the following are her
responsibilities, EXCEPT:
a. Give investment advice to participants
b. Fill the role of Plan Administrator
c. Follow a prudent process when hiring service providers
d. Sign and file the Form 5500.
Answer: a. Give investment advice to participants
◉ Under ERISA, the Plan Administrator has the following roles,
EXCEPT:
a. Providing participants with a summary plan description
b. Redesigning the plan's employer matching contribution formula
,c. Distributing required notices to participants
d. Providing the plan document to participants who request a copy.
Answer: b. Redesigning the plan's employer matching contribution
formula
◉ Under ERISA, all of the following are Plan Trustee responsibilities,
EXCEPT:
a. Monitor the investment manager whom the Plan Trustee hired.
b. Oversee the Plan Administrator.
c. Delegate specific investment duties to a service provider and
monitor the service provider's performance.
d. Follow participant directions for the investment of contributions,
unless the
instructions conflict with ERISA..
Answer: b. Oversee the Plan Administrator.
,◉ All of the following may be named fiduciaries in a plan document,
EXCEPT:
a. Plan Sponsor
b. Plan Administrator
c. Plan Trustee
d. Legal counsel who prepares the plan document.
Answer: d. Legal counsel who prepares the plan document
◉ Sue is a plan advisor for the ABC Retirement Plan. On the agenda
for the upcoming ABC Plan Committee meeting is an action item to
replace Len and nominate a new member to the Committee. Len has
been asked to leave the Committee due to his unsatisfactory
attendance at monthly meetings. All of the following are best
practices regarding fiduciary changes, EXCEPT:
a. Per Len's request, the Committee minutes will exclude the reason
Len was asked to leave the committee.
b. Sue should educate the members on the importance of
documenting fiduciary changes.
c. The Committee minutes should document the process of naming
Len's replacement.
, d. The new member should be informed of the goals of the
Committee and attendance requirements..
Answer: a. Per Len's request, the Committee minutes will exclude
the reason Len was asked to leave the committee.
◉ Sharon is a 3(21) advisor. She is meeting with a potential client
and is preparing for her meeting. All of the following are services
that Sharon may offer the prospect, EXCEPT:
a. Attend the client's investment committee meetings.
b. Create the agendas for the client's investment committee
meetings.
c. Assist with the review of the investments.
d. Make decision to replace funds on the watch list pursuant to the
investment policy statement, prior to attending the investment
committee meeting..
Answer: d. Make decision to replace funds on the watch list pursuant
to the investment policy statement, prior to attending the
investment committee meeting.
REVIEW GUIDE
◉ June is a Plan Sponsor of a small plan and decided she'll be acting
as the sole fiduciary of the plan. All of the following are her
responsibilities, EXCEPT:
a. Give investment advice to participants
b. Fill the role of Plan Administrator
c. Follow a prudent process when hiring service providers
d. Sign and file the Form 5500.
Answer: a. Give investment advice to participants
◉ Under ERISA, the Plan Administrator has the following roles,
EXCEPT:
a. Providing participants with a summary plan description
b. Redesigning the plan's employer matching contribution formula
,c. Distributing required notices to participants
d. Providing the plan document to participants who request a copy.
Answer: b. Redesigning the plan's employer matching contribution
formula
◉ Under ERISA, all of the following are Plan Trustee responsibilities,
EXCEPT:
a. Monitor the investment manager whom the Plan Trustee hired.
b. Oversee the Plan Administrator.
c. Delegate specific investment duties to a service provider and
monitor the service provider's performance.
d. Follow participant directions for the investment of contributions,
unless the
instructions conflict with ERISA..
Answer: b. Oversee the Plan Administrator.
,◉ All of the following may be named fiduciaries in a plan document,
EXCEPT:
a. Plan Sponsor
b. Plan Administrator
c. Plan Trustee
d. Legal counsel who prepares the plan document.
Answer: d. Legal counsel who prepares the plan document
◉ Sue is a plan advisor for the ABC Retirement Plan. On the agenda
for the upcoming ABC Plan Committee meeting is an action item to
replace Len and nominate a new member to the Committee. Len has
been asked to leave the Committee due to his unsatisfactory
attendance at monthly meetings. All of the following are best
practices regarding fiduciary changes, EXCEPT:
a. Per Len's request, the Committee minutes will exclude the reason
Len was asked to leave the committee.
b. Sue should educate the members on the importance of
documenting fiduciary changes.
c. The Committee minutes should document the process of naming
Len's replacement.
, d. The new member should be informed of the goals of the
Committee and attendance requirements..
Answer: a. Per Len's request, the Committee minutes will exclude
the reason Len was asked to leave the committee.
◉ Sharon is a 3(21) advisor. She is meeting with a potential client
and is preparing for her meeting. All of the following are services
that Sharon may offer the prospect, EXCEPT:
a. Attend the client's investment committee meetings.
b. Create the agendas for the client's investment committee
meetings.
c. Assist with the review of the investments.
d. Make decision to replace funds on the watch list pursuant to the
investment policy statement, prior to attending the investment
committee meeting..
Answer: d. Make decision to replace funds on the watch list pursuant
to the investment policy statement, prior to attending the
investment committee meeting.
