5/15/25, 4:51 PM CPFA exam ACTUAL EXAM TEST QUESTIONS & ANSWERS (A+ GRADED 100% VERIFIED) 2025 LATEST!! Flashcards | Q…
CPFA exam ACTUAL EXAM TEST QUESTIONS &
ANSWERS (A+ GRADED 100% VERIFIED) 2025
LATEST!!
Save
Terms in this set (162)
3(21) fiduciaries. They will act alongside other
Under the DOL
fiduciary service providers who are also not
regulation, many advisors
necessarily named in the plan document but who
to retirement plans and
exercise discretionary control over plan provisions
their participants will be
or plan investments.
plan sponsor about hiring fiduciary service
providers, including the different roles service
The advisor should providers, including the different roles service
educate the providers may take on within the plan, how to select
a qualified candidate, and the plan sponsor's
ongoing responsibility to monitor them.
who is a fiduciary
to what extent the person is a fiduciary
The fiduciary definition
has two parts:
Clarifying fiduciary status is arguably incomplete
without addressing both.
A best practice for a a. an acknowledgment of fiduciary status
service provider's formal b. clarification as to the extent of responsibilities
description of services
might therefore include
two parts:
educate your client and present possible
As a non-fiduciary
investments for the Retirement Plan Committee
advisor, you can
consideration.
https://quizlet.com/1044427818/cpfa-exam-actual-exam-test-questions-answers-a-graded-100-verified-2025-latest-flash-cards/?new 1/24
,5/15/25, 4:51 PM CPFA exam ACTUAL EXAM TEST QUESTIONS & ANSWERS (A+ GRADED 100% VERIFIED) 2025 LATEST!! Flashcards | Q…
If you recommend a giving investment advice and are therefore a
specific fund functional fiduciary to the plan.
replacement to the plan
sponsor or plan
participants, you are
considered to be
If fiduciaries of a fiduciary act
participants use your
recommendations - as
opposed to information -
to make investment
decisions, this could be
considered
As a non-fiduciary general investment reports or discussing the
advisor, you can meet appropriateness of the investments to the plan
with your client on a without making specific investment suggestions.
recurring basis (quarterly,
annually, etc) if providing
Plan fiduciaries will service providers for their plan under their ERISA
almost always have to "duty to obtain expert assistance."
hire
As a best practice, the the service providers, which usually includes a TPA
advisor can help and a record keeper.
fiduciaries select:
In owner driven smaller plan sponsor's HR staff - which is likely to be one
plans, the advisor can person in working with the various plan service
assist the providers.
In larger participant the HR director, CFO, and the retirement plan
driven plans, the advisor committee to evaluate service providers.
can work with
A 3(21) fiduciary does not investment advice fiduciary
serve as a fiduciary
investment manager, but
instead usually as
https://quizlet.com/1044427818/cpfa-exam-actual-exam-test-questions-answers-a-graded-100-verified-2025-latest-flash-cards/?new 2/24
, 5/15/25, 4:51 PM CPFA exam ACTUAL EXAM TEST QUESTIONS & ANSWERS (A+ GRADED 100% VERIFIED) 2025 LATEST!! Flashcards | Q…
f your client wants an 3(38) fiduciary advisor.
advisor to manager plan
investments, or just the
QDIA, they can hire a
A 3(21) fiduciary advisors plan fiduciaries.
can recommend
investments but the final
decision on which
investments to choose is
up to the
A 3(16) plan administrator an investment capacity.
can take on
administrative duties for
the plan but does not act
in
A non-fiduciary advisors education
can provide
The DOL is not required the plan hires a 3(21) advisor.
to be notified if
The fiduciaries should do prudent process was not followed when selecting
a review of the service the service provider. They should also review the
provider qualifications in service agreement, document the decision process,
order to prove a and have a service agreement with the 3(21) advisor.
fiduciary to the plan, but different than advisors
A 3(21) advisor fiduciary
working as 3(38) fiduciaries, it is rarely named in the
is considered a
plan document.
The service agreement a TPA will work as a 3(16) fiduciary Plan
between the plan Administrator.
sponsor and the TPA is
what determines if
https://quizlet.com/1044427818/cpfa-exam-actual-exam-test-questions-answers-a-graded-100-verified-2025-latest-flash-cards/?new 3/24
CPFA exam ACTUAL EXAM TEST QUESTIONS &
ANSWERS (A+ GRADED 100% VERIFIED) 2025
LATEST!!
Save
Terms in this set (162)
3(21) fiduciaries. They will act alongside other
Under the DOL
fiduciary service providers who are also not
regulation, many advisors
necessarily named in the plan document but who
to retirement plans and
exercise discretionary control over plan provisions
their participants will be
or plan investments.
plan sponsor about hiring fiduciary service
providers, including the different roles service
The advisor should providers, including the different roles service
educate the providers may take on within the plan, how to select
a qualified candidate, and the plan sponsor's
ongoing responsibility to monitor them.
who is a fiduciary
to what extent the person is a fiduciary
The fiduciary definition
has two parts:
Clarifying fiduciary status is arguably incomplete
without addressing both.
A best practice for a a. an acknowledgment of fiduciary status
service provider's formal b. clarification as to the extent of responsibilities
description of services
might therefore include
two parts:
educate your client and present possible
As a non-fiduciary
investments for the Retirement Plan Committee
advisor, you can
consideration.
https://quizlet.com/1044427818/cpfa-exam-actual-exam-test-questions-answers-a-graded-100-verified-2025-latest-flash-cards/?new 1/24
,5/15/25, 4:51 PM CPFA exam ACTUAL EXAM TEST QUESTIONS & ANSWERS (A+ GRADED 100% VERIFIED) 2025 LATEST!! Flashcards | Q…
If you recommend a giving investment advice and are therefore a
specific fund functional fiduciary to the plan.
replacement to the plan
sponsor or plan
participants, you are
considered to be
If fiduciaries of a fiduciary act
participants use your
recommendations - as
opposed to information -
to make investment
decisions, this could be
considered
As a non-fiduciary general investment reports or discussing the
advisor, you can meet appropriateness of the investments to the plan
with your client on a without making specific investment suggestions.
recurring basis (quarterly,
annually, etc) if providing
Plan fiduciaries will service providers for their plan under their ERISA
almost always have to "duty to obtain expert assistance."
hire
As a best practice, the the service providers, which usually includes a TPA
advisor can help and a record keeper.
fiduciaries select:
In owner driven smaller plan sponsor's HR staff - which is likely to be one
plans, the advisor can person in working with the various plan service
assist the providers.
In larger participant the HR director, CFO, and the retirement plan
driven plans, the advisor committee to evaluate service providers.
can work with
A 3(21) fiduciary does not investment advice fiduciary
serve as a fiduciary
investment manager, but
instead usually as
https://quizlet.com/1044427818/cpfa-exam-actual-exam-test-questions-answers-a-graded-100-verified-2025-latest-flash-cards/?new 2/24
, 5/15/25, 4:51 PM CPFA exam ACTUAL EXAM TEST QUESTIONS & ANSWERS (A+ GRADED 100% VERIFIED) 2025 LATEST!! Flashcards | Q…
f your client wants an 3(38) fiduciary advisor.
advisor to manager plan
investments, or just the
QDIA, they can hire a
A 3(21) fiduciary advisors plan fiduciaries.
can recommend
investments but the final
decision on which
investments to choose is
up to the
A 3(16) plan administrator an investment capacity.
can take on
administrative duties for
the plan but does not act
in
A non-fiduciary advisors education
can provide
The DOL is not required the plan hires a 3(21) advisor.
to be notified if
The fiduciaries should do prudent process was not followed when selecting
a review of the service the service provider. They should also review the
provider qualifications in service agreement, document the decision process,
order to prove a and have a service agreement with the 3(21) advisor.
fiduciary to the plan, but different than advisors
A 3(21) advisor fiduciary
working as 3(38) fiduciaries, it is rarely named in the
is considered a
plan document.
The service agreement a TPA will work as a 3(16) fiduciary Plan
between the plan Administrator.
sponsor and the TPA is
what determines if
https://quizlet.com/1044427818/cpfa-exam-actual-exam-test-questions-answers-a-graded-100-verified-2025-latest-flash-cards/?new 3/24
