CPFA EXAM NEWEST 2026 ACTUAL
EXAM TEST BANK| NAPA (CERTIFIED
PLAN FIDUCIARY ADVISOR)
CERTIFICATION EXAM PREP WITH
COMPLETE 400 REAL EXAM
QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+
(MOST RECENT!!)
Q1: What are the 4 basic fiduciary standards under the
Fiduciary Standard of Care (ERISA Section 404)?
Answer: 1) Loyalty (Exclusive purpose rule), 2) Prudence, 3)
Diversification, 4) Following the plan's governing documents
Rationale: These four duties form the foundation of ERISA
fiduciary responsibility. The loyalty duty requires acting solely
for participant/beneficiary benefit; prudence requires careful
investigation and documentation; diversification minimizes
risk; and plan documents must be followed unless contrary to
ERISA.
Q2: Who will almost always be a fiduciary to the plan?
, Answer: 1) Plan Sponsor, 2) Plan Trustee, 3) Plan
Administrator
Rationale: These three roles inherently exercise discretionary
authority or control over plan management or assets, making
them fiduciaries by definition under ERISA Section 3(21).
Q3: Which statement about personal liability is true?
Answer: All fiduciaries have personal liability
Rationale: ERISA holds fiduciaries personally liable for losses
resulting from breaches of fiduciary duties. This personal
liability cannot be waived or indemnified by the plan.
Q4: Plan fiduciaries have a legal obligation to operate the
plan on behalf of whom?
Answer: Plan participants and their beneficiaries
Rationale: The "exclusive purpose rule" requires fiduciaries
to act solely in the interest of participants and beneficiaries—
not on behalf of owners, employers, or key employees.
Q5: As Plan Sponsor with others serving as Trustee and Plan
Administrator, what are your fiduciary duties?
Answer: 1) Prudently select and monitor named fiduciaries,
2) Maintain plan records
Rationale: Even when delegating day-to-day operations, the
Plan Sponsor retains oversight responsibility for selecting
qualified fiduciaries and ensuring proper record maintenance.
Q6: Classify: File Form 5500 – Plan Administrator or Trustee?
Answer: Plan Administrator
, Rationale: Form 5500 filing is an administrative function, not
an investment or asset custody function, falling under the
Plan Administrator's responsibilities.
Q7: Classify: Provide participant fee disclosures – Plan
Administrator or Trustee?
Answer: Plan Administrator
Rationale: Fee disclosures under 404(a)(5) are administrative
duties requiring distribution of specific information to
participants, assigned to the Plan Administrator.
Q8: Classify: Prudently select and monitor investment
managers – Plan Administrator or Trustee?
Answer: Trustee
Rationale: Investment manager selection involves asset
oversight and control, making it a Trustee function rather
than an administrative one.
Q9: Classify: Pursue monies owed to the plan – Plan
Administrator or Trustee?
Answer: Trustee
Rationale: Collecting delinquent contributions or amounts
owed involves asset recovery, falling under Trustee's asset
control duties.
Q10: If plan trustee or plan administrator are not named in
the Plan Document, who assumes their roles?
Answer: Plan Sponsor
, Rationale: ERISA provides default fiduciary status—if no
named fiduciary exists, the Plan Sponsor automatically
assumes those responsibilities.
Q11: What is best practice for a service provider's formal
description of services?
Answer: 1) Acknowledgement of fiduciary status, 2)
Clarification as to extent of responsibilities
Rationale: This two-part disclosure ensures clarity about
whether a provider is a fiduciary (and to what extent),
reducing inadvertent fiduciary exposure.
Q12: Describe the best practice process for changing a plan
fiduciary.
Answer: Selection should follow plan documents; committee
should document changes in meeting minutes; new members
must be apprised of their responsibilities
Rationale: Documentation demonstrates prudent process
and ensures new fiduciaries understand their legal
obligations, reducing breach risk.
Q13: What does it mean to be a plan fiduciary?
Answer: Responsibility to: 1) Act prudently, 2) Operate plan
according to plan document, 3) Act exclusively for
participant/beneficiary interests, 4) Run plan for providing
benefits and paying expenses
Rationale: These four elements define ERISA fiduciary status
and the scope of fiduciary obligations.
Q14: Which of the following is a fiduciary duty under ERISA?
EXAM TEST BANK| NAPA (CERTIFIED
PLAN FIDUCIARY ADVISOR)
CERTIFICATION EXAM PREP WITH
COMPLETE 400 REAL EXAM
QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+
(MOST RECENT!!)
Q1: What are the 4 basic fiduciary standards under the
Fiduciary Standard of Care (ERISA Section 404)?
Answer: 1) Loyalty (Exclusive purpose rule), 2) Prudence, 3)
Diversification, 4) Following the plan's governing documents
Rationale: These four duties form the foundation of ERISA
fiduciary responsibility. The loyalty duty requires acting solely
for participant/beneficiary benefit; prudence requires careful
investigation and documentation; diversification minimizes
risk; and plan documents must be followed unless contrary to
ERISA.
Q2: Who will almost always be a fiduciary to the plan?
, Answer: 1) Plan Sponsor, 2) Plan Trustee, 3) Plan
Administrator
Rationale: These three roles inherently exercise discretionary
authority or control over plan management or assets, making
them fiduciaries by definition under ERISA Section 3(21).
Q3: Which statement about personal liability is true?
Answer: All fiduciaries have personal liability
Rationale: ERISA holds fiduciaries personally liable for losses
resulting from breaches of fiduciary duties. This personal
liability cannot be waived or indemnified by the plan.
Q4: Plan fiduciaries have a legal obligation to operate the
plan on behalf of whom?
Answer: Plan participants and their beneficiaries
Rationale: The "exclusive purpose rule" requires fiduciaries
to act solely in the interest of participants and beneficiaries—
not on behalf of owners, employers, or key employees.
Q5: As Plan Sponsor with others serving as Trustee and Plan
Administrator, what are your fiduciary duties?
Answer: 1) Prudently select and monitor named fiduciaries,
2) Maintain plan records
Rationale: Even when delegating day-to-day operations, the
Plan Sponsor retains oversight responsibility for selecting
qualified fiduciaries and ensuring proper record maintenance.
Q6: Classify: File Form 5500 – Plan Administrator or Trustee?
Answer: Plan Administrator
, Rationale: Form 5500 filing is an administrative function, not
an investment or asset custody function, falling under the
Plan Administrator's responsibilities.
Q7: Classify: Provide participant fee disclosures – Plan
Administrator or Trustee?
Answer: Plan Administrator
Rationale: Fee disclosures under 404(a)(5) are administrative
duties requiring distribution of specific information to
participants, assigned to the Plan Administrator.
Q8: Classify: Prudently select and monitor investment
managers – Plan Administrator or Trustee?
Answer: Trustee
Rationale: Investment manager selection involves asset
oversight and control, making it a Trustee function rather
than an administrative one.
Q9: Classify: Pursue monies owed to the plan – Plan
Administrator or Trustee?
Answer: Trustee
Rationale: Collecting delinquent contributions or amounts
owed involves asset recovery, falling under Trustee's asset
control duties.
Q10: If plan trustee or plan administrator are not named in
the Plan Document, who assumes their roles?
Answer: Plan Sponsor
, Rationale: ERISA provides default fiduciary status—if no
named fiduciary exists, the Plan Sponsor automatically
assumes those responsibilities.
Q11: What is best practice for a service provider's formal
description of services?
Answer: 1) Acknowledgement of fiduciary status, 2)
Clarification as to extent of responsibilities
Rationale: This two-part disclosure ensures clarity about
whether a provider is a fiduciary (and to what extent),
reducing inadvertent fiduciary exposure.
Q12: Describe the best practice process for changing a plan
fiduciary.
Answer: Selection should follow plan documents; committee
should document changes in meeting minutes; new members
must be apprised of their responsibilities
Rationale: Documentation demonstrates prudent process
and ensures new fiduciaries understand their legal
obligations, reducing breach risk.
Q13: What does it mean to be a plan fiduciary?
Answer: Responsibility to: 1) Act prudently, 2) Operate plan
according to plan document, 3) Act exclusively for
participant/beneficiary interests, 4) Run plan for providing
benefits and paying expenses
Rationale: These four elements define ERISA fiduciary status
and the scope of fiduciary obligations.
Q14: Which of the following is a fiduciary duty under ERISA?
