CPFA License Exam- (Certified Plan Fiduciary Advisor) with all
Correct & 100% Verified Answers |Already Graded A+
1. What are the 4 basic fiduciary 1.) Loyalty - (Exclusive purpose rule -
standards under the Fiduciary Provid-ing benefits to participants and their
Standard of Care? (Section 404) benefi-ciaries; and defraying reasonable
expenses of administering the plan)
2.) Prudence - (Act with prudence by
inves-tigating before making any plan
decisions, documenting the decision-making
process, hiring experts when they don't
possess the knowledge or skills to make a
decision, and monitoring if their decisions
are still ideal based on the exclusive
purpose rule and tak-ing action if not
3.) Diversification - (Diversify investment
in a prudent manner in order to minimize
risk; In-vestment factors may include purpose
of plan, amount of assets, investment
acumen of the participants and participant
demographics
4.) Following the plan's governing
documents
2. How many fiduciaries does a - (Follow plan documents to the extent
retirement plan? that they are not contrary to ERISA rules)
3. Plan fiduciaries have a legal All retirement plans have one or more fiducia-
obligation to ries
Plan participants and their beneficiaries, and
operate the plan on behalf of ...? (Primary not on behalf of owners, the employer,
or key
rule of ERISA) fiduciary to the plan?
4. Who will almost always be a
, CPFA License Exam- (Certified Plan Fiduciary Advisor) with all
Correct & 100% Verified Answers |Already Graded A+
employees
1.) Plan Sponsor
2.) Plan Trustee
3.) Plan Administrator
Correct & 100% Verified Answers |Already Graded A+
1. What are the 4 basic fiduciary 1.) Loyalty - (Exclusive purpose rule -
standards under the Fiduciary Provid-ing benefits to participants and their
Standard of Care? (Section 404) benefi-ciaries; and defraying reasonable
expenses of administering the plan)
2.) Prudence - (Act with prudence by
inves-tigating before making any plan
decisions, documenting the decision-making
process, hiring experts when they don't
possess the knowledge or skills to make a
decision, and monitoring if their decisions
are still ideal based on the exclusive
purpose rule and tak-ing action if not
3.) Diversification - (Diversify investment
in a prudent manner in order to minimize
risk; In-vestment factors may include purpose
of plan, amount of assets, investment
acumen of the participants and participant
demographics
4.) Following the plan's governing
documents
2. How many fiduciaries does a - (Follow plan documents to the extent
retirement plan? that they are not contrary to ERISA rules)
3. Plan fiduciaries have a legal All retirement plans have one or more fiducia-
obligation to ries
Plan participants and their beneficiaries, and
operate the plan on behalf of ...? (Primary not on behalf of owners, the employer,
or key
rule of ERISA) fiduciary to the plan?
4. Who will almost always be a
, CPFA License Exam- (Certified Plan Fiduciary Advisor) with all
Correct & 100% Verified Answers |Already Graded A+
employees
1.) Plan Sponsor
2.) Plan Trustee
3.) Plan Administrator
