CPC CPC Ethics & Professional Standards 2

Question 1

A CPC is asked to provide an opinion on a plan design that he believes may violate ERISA's coverage requirements. What should he do?

Accepted Answer

Provide the opinion with a clear statement of the legal concern and recommend the client obtain legal counsel

Answer

Professional standards require the CPC to provide honest advice that includes identifying the potential ERISA compliance risk and recommending the client consult legal counsel for a definitive legal opinion.

Question 2

Under what circumstances may a CPC disclose confidential client plan information without client consent?

Accepted Answer

When required by law, court order, or professional disciplinary proceedings

Answer

Confidential client information may be disclosed without consent only when compelled by law, court order, or required by professional oversight bodies in disciplinary proceedings.

Question 3

Which of the following best describes a 'conflict of interest' for a pension consultant?

Accepted Answer

A situation where the consultant's personal or business interests could improperly influence professional judgment

Answer

A conflict of interest arises when a consultant has a personal, financial, or business interest that could compromise—or appear to compromise—their objective professional judgment.

Question 4

A CPC transitions a client to another pension consultant. What ethical obligation exists regarding client files and records?

Accepted Answer

The CPC must cooperate in the orderly transition of files and records to protect the client's interests

Answer

Professional standards require cooperation in client transitions, including providing files and records needed to ensure continuity of service for the client's benefit.

Question 5

When a CPC relies on work product provided by another professional (e.g., a valuation from an appraiser), what is the CPC's responsibility?

Accepted Answer

The CPC must assess whether reliance is reasonable and disclose the reliance in their own work product

Answer

Professional standards allow reliance on other experts when the reliance is reasonable and disclosed; the CPC need not independently replicate the work but must use professional judgment about its reasonableness.

(CPC) Certified Pension Consultant Practice Test

(CPC) Certified Pension Consultant Practice Test

CPC CPC Ethics & Professional Standards 2