CPFA Exam Questions and Correct Answers Latest Edition// Already
Graded A+
Terms in this set (162)
Under the DOL regulation, 3(21) fiduciaries. They will act alongside other fiduciary
many advisors to retirement service providers who are also not necessarily named in the
plans and their participants plan document but who exercise discretionary control over
will be plan provisions or plan investments.
plan sponsor about hiring fiduciary service providers,
including the different roles service providers, including the
The advisor should educate 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.
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 service a. an acknowledgment of fiduciary status
provider's formal description b. clarification as to the extent of responsibilities
of services might
therefore include two parts:
educate your client and present possible investments for the
As a non-fiduciary advisor, you
can Retirement Plan Committee consideration.
If you recommend a specific fund giving investment advice and are therefore a functional fiduciary to the
replacement to the plan plan.
sponsor or plan participants,
you are considered to be
If fiduciaries of participants a fiduciary act
use your recommendations -
as opposed to
information - to make investment
decisions, this could be
considered
, As a non-fiduciary advisor, you general investment reports or discussing the appropriateness
can meet with your client on of the investments to the plan without making specific
a recurring basis investment suggestions.
(quarterly, annually, etc) if
providing
Plan fiduciaries will almost service providers for their plan under their ERISA "duty to obtain
always have to hire expert assistance."
As a best practice, the advisor the service providers, which usually includes a TPA and a record keeper.
can help fiduciaries select:
In owner driven smaller plans, plan sponsor's HR staff - which is likely to be one person in
the advisor can assist the working with the various plan service providers.
In larger participant driven the HR director, CFO, and the retirement plan committee to
plans, the advisor can work evaluate service providers.
with
A 3(21) fiduciary does not serve investment advice fiduciary
as a
fiduciary investment manager, but
instead usually as
f your client wants an advisor to 3(38) fiduciary advisor.
manager
plan investments, or just the
QDIA, they can hire a
A 3(21) fiduciary advisors can plan fiduciaries.
recommend investments but the
final decision on which
investments to choose is up to
the
A 3(16) plan administrator can an investment capacity.
take on administrative duties
for the plan but does not act in
A non-fiduciary advisors can education
provide
The DOL is not required to be the plan hires a 3(21) advisor.
notified if
The fiduciaries should do a prudent process was not followed when selecting the service
review of the service provider provider. They should also review the service agreement,
qualifications in order to document the decision process, and have a
prove a service agreement with the 3(21) advisor.
fiduciary to the plan, but different than advisors working as
A 3(21) advisor fiduciary is
considered a 3(38) fiduciaries, it is rarely named in the plan document.
Graded A+
Terms in this set (162)
Under the DOL regulation, 3(21) fiduciaries. They will act alongside other fiduciary
many advisors to retirement service providers who are also not necessarily named in the
plans and their participants plan document but who exercise discretionary control over
will be plan provisions or plan investments.
plan sponsor about hiring fiduciary service providers,
including the different roles service providers, including the
The advisor should educate 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.
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 service a. an acknowledgment of fiduciary status
provider's formal description b. clarification as to the extent of responsibilities
of services might
therefore include two parts:
educate your client and present possible investments for the
As a non-fiduciary advisor, you
can Retirement Plan Committee consideration.
If you recommend a specific fund giving investment advice and are therefore a functional fiduciary to the
replacement to the plan plan.
sponsor or plan participants,
you are considered to be
If fiduciaries of participants a fiduciary act
use your recommendations -
as opposed to
information - to make investment
decisions, this could be
considered
, As a non-fiduciary advisor, you general investment reports or discussing the appropriateness
can meet with your client on of the investments to the plan without making specific
a recurring basis investment suggestions.
(quarterly, annually, etc) if
providing
Plan fiduciaries will almost service providers for their plan under their ERISA "duty to obtain
always have to hire expert assistance."
As a best practice, the advisor the service providers, which usually includes a TPA and a record keeper.
can help fiduciaries select:
In owner driven smaller plans, plan sponsor's HR staff - which is likely to be one person in
the advisor can assist the working with the various plan service providers.
In larger participant driven the HR director, CFO, and the retirement plan committee to
plans, the advisor can work evaluate service providers.
with
A 3(21) fiduciary does not serve investment advice fiduciary
as a
fiduciary investment manager, but
instead usually as
f your client wants an advisor to 3(38) fiduciary advisor.
manager
plan investments, or just the
QDIA, they can hire a
A 3(21) fiduciary advisors can plan fiduciaries.
recommend investments but the
final decision on which
investments to choose is up to
the
A 3(16) plan administrator can an investment capacity.
take on administrative duties
for the plan but does not act in
A non-fiduciary advisors can education
provide
The DOL is not required to be the plan hires a 3(21) advisor.
notified if
The fiduciaries should do a prudent process was not followed when selecting the service
review of the service provider provider. They should also review the service agreement,
qualifications in order to document the decision process, and have a
prove a service agreement with the 3(21) advisor.
fiduciary to the plan, but different than advisors working as
A 3(21) advisor fiduciary is
considered a 3(38) fiduciaries, it is rarely named in the plan document.
