QPFC Practice Questions - NAPA Qualified Plan Financial Consultant (QPFC) Exam

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An advisor agrees to provide ERISA §3(21) co-fiduciary investment advice to a 401(k) plan committee. How does this engagement differ from an ERISA §3(38) engagement?

A §3(21) advisor recommends investments but the plan fiduciary retains discretion and decision-making authority; a §3(38) manager has discretion to make the decisions A §3(21) advisor must be a registered investment adviser; a §3(38) manager may be any service provider A §3(21) advisor takes on all investment liability; a §3(38) manager only provides recommendations A §3(21) advisor cannot be paid for advice; a §3(38) manager may be

Correct Answer:

A §3(21) advisor recommends investments but the plan fiduciary retains discretion and decision-making authority; a §3(38) manager has discretion to make the decisions

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