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 pl...
CPFA exam Questions & 100% Correct
Answers- Latest Test | Graded A+ | Passed
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.
f your client wants an advisor to manager plan investments, or just the QDIA, they can hire
a
✓ -:- 3(38) fiduciary advisor.
A 3(21) fiduciary advisors can recommend investments but the final decision on which
investments to choose is up to the
✓ -:- plan fiduciaries.
A 3(16) plan administrator can take on administrative duties for the plan but does not act in
✓ -:- an investment capacity.
A non-fiduciary advisors can provide
✓ -:- education
The DOL is not required to be notified if
✓ -:- the plan hires a 3(21) advisor.
The fiduciaries should do a review of the service provider qualifications in order to prove a
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