CRPS Test Questions Solved Correctly Latest Update 2025
3 agencies governing ERISA - Answers IRS, DOL and PBGC (pension benefit guaranty corporation)
ERISA definition of 1 year of service - Answers 1,000 hours worked during the year
Maximum vesting schedule for DN plan? (Not top heavy) - Answers 7 years. 3-7 year graded
Reason ERISA was made law? - Answers Protect participants in company sponsored retirement plans.
Summary Plan Description - Answers Summary of plan, written to be understandable to plan
participants
Adoption Agreement - Answers Legal agreements establishing the plan
Summary of Material Modification - Answers Filed when material changes are made
Investment policy statement - Answers Road map for managing investments
Who engages the TPA - Answers Plan Administrator.
TPAs are used to: - Answers Ensure plan is in compliance with various standards and reporting
requirements
Duty to keep current - Answers Up to date with subjects relating to job
Duty of care - Answers Requires fiduciary to have competency to give fiduciary advice
ERISA (Employee Retirement Income Security Act) section 404(c) requirements for fiduciary - Answers -3
investment options that are broadly diversified. -Be prudent and ensure fees are reasonable. -ensure
proper disclosures are made to plan participants.
Elements of Prudent Investor Rule - Answers Applies to any investment as part of total portfolio rather
than as an individual investment. - Trade off of risk and return are important. -Requires a high level of
skill and knowledge
Is a verbal disclosure adequate under the fiduciary standards - Answers No. Acceptable under suitably
standard
DOL Impartial conduct standard requirements - Answers -Best interest of client
-Charge reasonable compensation
-Avoid misleading statements
The person who can explain who is the responsible fiduciary. - Answers Named fiduciary
Fiduciary that is responsible for safekeeping of retirement plan assets - Answers Trustee
, If there is no named plan administrator ERISA presumes it is who? - Answers Plan Sponsor
Under ERISA being a co-fiduciary means - Answers A fiduciary for one aspect of a plan can be held liable
for the actions of another fiduciary of the plan. They have to be aware of the breach and do nothing to
remedy it.
Fiduciary functions of a plan administrator - Answers Authorizing a plan loan
Providing investment services for a fee
Enforcement of terms of the plan
A "party of interest" is prohibited from entering into certain transactions with a qualified plan True or
false? - Answers True
Fiduciary or not? RIA managing a brokerage account - Answers Fiduciary
Fiduciary or not? Advisor providing personalized investment advice to a qualified plan on an ongoing
basis. - Answers Fiduciary
Fiduciary or not? A plan administrator with discretionary management and control over the
administration of the plan - Answers Fiduciary
Fiduciary or not? Registered Rep providing guidance on selecting stocks for a portfolio - Answers Not a
fiduciary.
Know you customer is part of which standard? Fiduciary or suitability? - Answers Suitably
"Solely incidental" investment advice is held to fiduciary standards? True or false - Answers True
Use of proprietary funds, high initial or recurring fees and revenue sharing agreements between the
fund and administrator are all red flags of ____________ - Answers High Plan fees
Focusing on advice not sales is a best practice for DOL compliance. True or False - Answers True
Six major duties of a fiduciary - Answers Duty of loyalty
Duty of care
Duty to disclose
Duty to diagnose
Duty to Consult
Duty to keep current
Employers maximum deductible contribution is ______% of total compensation for all employees. -
Answers 25
3 agencies governing ERISA - Answers IRS, DOL and PBGC (pension benefit guaranty corporation)
ERISA definition of 1 year of service - Answers 1,000 hours worked during the year
Maximum vesting schedule for DN plan? (Not top heavy) - Answers 7 years. 3-7 year graded
Reason ERISA was made law? - Answers Protect participants in company sponsored retirement plans.
Summary Plan Description - Answers Summary of plan, written to be understandable to plan
participants
Adoption Agreement - Answers Legal agreements establishing the plan
Summary of Material Modification - Answers Filed when material changes are made
Investment policy statement - Answers Road map for managing investments
Who engages the TPA - Answers Plan Administrator.
TPAs are used to: - Answers Ensure plan is in compliance with various standards and reporting
requirements
Duty to keep current - Answers Up to date with subjects relating to job
Duty of care - Answers Requires fiduciary to have competency to give fiduciary advice
ERISA (Employee Retirement Income Security Act) section 404(c) requirements for fiduciary - Answers -3
investment options that are broadly diversified. -Be prudent and ensure fees are reasonable. -ensure
proper disclosures are made to plan participants.
Elements of Prudent Investor Rule - Answers Applies to any investment as part of total portfolio rather
than as an individual investment. - Trade off of risk and return are important. -Requires a high level of
skill and knowledge
Is a verbal disclosure adequate under the fiduciary standards - Answers No. Acceptable under suitably
standard
DOL Impartial conduct standard requirements - Answers -Best interest of client
-Charge reasonable compensation
-Avoid misleading statements
The person who can explain who is the responsible fiduciary. - Answers Named fiduciary
Fiduciary that is responsible for safekeeping of retirement plan assets - Answers Trustee
, If there is no named plan administrator ERISA presumes it is who? - Answers Plan Sponsor
Under ERISA being a co-fiduciary means - Answers A fiduciary for one aspect of a plan can be held liable
for the actions of another fiduciary of the plan. They have to be aware of the breach and do nothing to
remedy it.
Fiduciary functions of a plan administrator - Answers Authorizing a plan loan
Providing investment services for a fee
Enforcement of terms of the plan
A "party of interest" is prohibited from entering into certain transactions with a qualified plan True or
false? - Answers True
Fiduciary or not? RIA managing a brokerage account - Answers Fiduciary
Fiduciary or not? Advisor providing personalized investment advice to a qualified plan on an ongoing
basis. - Answers Fiduciary
Fiduciary or not? A plan administrator with discretionary management and control over the
administration of the plan - Answers Fiduciary
Fiduciary or not? Registered Rep providing guidance on selecting stocks for a portfolio - Answers Not a
fiduciary.
Know you customer is part of which standard? Fiduciary or suitability? - Answers Suitably
"Solely incidental" investment advice is held to fiduciary standards? True or false - Answers True
Use of proprietary funds, high initial or recurring fees and revenue sharing agreements between the
fund and administrator are all red flags of ____________ - Answers High Plan fees
Focusing on advice not sales is a best practice for DOL compliance. True or False - Answers True
Six major duties of a fiduciary - Answers Duty of loyalty
Duty of care
Duty to disclose
Duty to diagnose
Duty to Consult
Duty to keep current
Employers maximum deductible contribution is ______% of total compensation for all employees. -
Answers 25
