CPFA License Exam Certified Plan
Fiduciary Actual Exam Newest With
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KenZY570 Teacher
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Under the DOL regulation, many advisors to retirement
plans and their participants will be
3(21) fiduciaries. They will act alongside other fiduciary
service providers who are also not necessarily named in
the plan document but who exercise discretionary
control over plan provisions or plan investments.
,The advisor should educate the
plan sponsor about hiring fiduciary service providers,
including the different roles service providers, including
the different roles service providers may take on within
the plan, how to select a qualified candidate, and the
plan sponsor's ongoing responsibility to monitor them.
The fiduciary definition has two parts:
who is a fiduciary
to what extent the person is a fiduciary
Clarifying fiduciary status is arguably incomplete without
addressing both.
A best practice for a service provider's formal description
of services might therefore include two parts:
a. an acknowledgment of fiduciary status
b. clarification as to the extent of responsibilities
,As a non-fiduciary advisor, you can
educate your client and present possible investments for
the Retirement Plan Committee consideration.
If you recommend a specific fund replacement to the
plan sponsor or plan participants, you are considered to
be
giving investment advice and are therefore a functional
fiduciary to the plan.
If fiduciaries of participants use your recommendations -
as opposed to information - to make investment
decisions, this could be considered
a fiduciary act
As a non-fiduciary advisor, you can meet with your client
on a recurring basis (quarterly, annually, etc) if providing
general investment reports or discussing the
appropriateness of the investments to the plan without
making specific investment suggestions.
, Plan fiduciaries will almost always have to hire
service providers for their plan under their ERISA "duty to
obtain expert assistance."
As a best practice, the advisor can help fiduciaries select:
the service providers, which usually includes a TPA and a
record keeper.
In owner driven smaller plans, the advisor can assist the
plan sponsor's HR staff - which is likely to be one person
in working with the various plan service providers.
In larger participant driven plans, the advisor can work
with
the HR director, CFO, and the retirement plan committee
to evaluate service providers.
Fiduciary Actual Exam Newest With
Complete Questions And Correct Detailed
Answers| Brand New Version!
KenZY570 Teacher
Save
Terms (162)
Hide definitions
Under the DOL regulation, many advisors to retirement
plans and their participants will be
3(21) fiduciaries. They will act alongside other fiduciary
service providers who are also not necessarily named in
the plan document but who exercise discretionary
control over plan provisions or plan investments.
,The advisor should educate the
plan sponsor about hiring fiduciary service providers,
including the different roles service providers, including
the different roles service providers may take on within
the plan, how to select a qualified candidate, and the
plan sponsor's ongoing responsibility to monitor them.
The fiduciary definition has two parts:
who is a fiduciary
to what extent the person is a fiduciary
Clarifying fiduciary status is arguably incomplete without
addressing both.
A best practice for a service provider's formal description
of services might therefore include two parts:
a. an acknowledgment of fiduciary status
b. clarification as to the extent of responsibilities
,As a non-fiduciary advisor, you can
educate your client and present possible investments for
the Retirement Plan Committee consideration.
If you recommend a specific fund replacement to the
plan sponsor or plan participants, you are considered to
be
giving investment advice and are therefore a functional
fiduciary to the plan.
If fiduciaries of participants use your recommendations -
as opposed to information - to make investment
decisions, this could be considered
a fiduciary act
As a non-fiduciary advisor, you can meet with your client
on a recurring basis (quarterly, annually, etc) if providing
general investment reports or discussing the
appropriateness of the investments to the plan without
making specific investment suggestions.
, Plan fiduciaries will almost always have to hire
service providers for their plan under their ERISA "duty to
obtain expert assistance."
As a best practice, the advisor can help fiduciaries select:
the service providers, which usually includes a TPA and a
record keeper.
In owner driven smaller plans, the advisor can assist the
plan sponsor's HR staff - which is likely to be one person
in working with the various plan service providers.
In larger participant driven plans, the advisor can work
with
the HR director, CFO, and the retirement plan committee
to evaluate service providers.
