CPC Fiduciary Responsibility & Compliance Standards

Question 1

What is a fiduciary's primary duty?

Accepted Answer

Act in the participants' best interest

Answer

Maximize company profits

Answer

Favor highly compensated employees

Answer

Follow investment trends

Question 2

Which law defines fiduciary responsibilities for retirement plans?

Accepted Answer

ERISA

Answer

HIPAA

Answer

COBRA

Answer

FMLA

Question 3

What action should a fiduciary take to avoid conflicts of interest?

Accepted Answer

Disclose and avoid conflicts

Answer

Ignore conflicts

Answer

Prioritize personal gain

Answer

Outsource responsibility

Question 4

Which best describes the 'prudent man' standard?

Accepted Answer

Act with care and diligence

Answer

Take significant investment risks

Answer

Focus on personal opinions

Answer

Avoid investment decisions

Question 5

What is a fiduciary breach?

Accepted Answer

Failing to act in participants' best interests

Answer

Maximizing returns

Answer

Documenting decisions

Answer

Delegating responsibilities properly

Question 6

How can fiduciaries demonstrate compliance?

Accepted Answer

Document decisions and processes

Answer

Rely on memory

Answer

Avoid making decisions

Answer

Minimize written records

Question 7

What is the fiduciary's responsibility regarding plan fees?

Accepted Answer

Monitor and ensure reasonableness of fees

Answer

Ignore fee comparisons

Answer

Accept highest-priced services

Answer

Focus only on returns

Question 8

What does a fiduciary need to consider when selecting plan investments?

Accepted Answer

Evaluate risk, return, and appropriateness

Answer

Select investments randomly

Answer

Focus on personal preferences

Answer

Seek highest fees

Question 9

Who is responsible for monitoring service providers?

Accepted Answer

The fiduciary

Answer

Service providers themselves

Answer

Plan participants

Answer

Third-party auditors only