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

Question 1

Under ERISA §404(a)(1)(B), an investment advisor servicing a 401(k) plan must act with the care, skill, prudence, and diligence of a person who is familiar with such matters. This is commonly referred to as which standard?

The prudent expert standard The reasonable layperson standard The good-faith effort standard The arm's-length transaction standard

Correct Answer:

The prudent expert standard

Question 2

ERISA §404(a)(1)(A) requires a fiduciary to discharge duties solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits and defraying reasonable expenses. This obligation is best described as the duty of:

Loyalty Diversification Following plan documents Care

Correct Answer:

Loyalty

Question 3

Which of the following functions performed for a 401(k) plan would NOT, by itself, make a person an ERISA fiduciary under §3(21)(A)?

Processing payroll deferrals according to participant instructions with no discretion Exercising discretionary authority over plan administration Rendering investment advice for a fee with respect to plan assets Selecting the investment lineup made available to participants

Correct Answer:

Processing payroll deferrals according to participant instructions with no discretion

Question 4

An advisor signs an agreement assuming ERISA §3(38) status for the investment menu of a participant-directed 401(k) plan. What is the resulting allocation of investment-selection fiduciary responsibility?

The §3(38) manager has full discretionary authority and bears fiduciary liability for the lineup it constructs, while the named fiduciary retains a duty to prudently select and monitor that manager The plan sponsor remains fully liable for individual fund selections; the §3(38) appointment is purely advisory Liability is shared 50/50 between the §3(38) manager and the plan sponsor The §3(38) appointment shifts all fiduciary liability, including the duty to monitor, to the manager

Correct Answer:

The §3(38) manager has full discretionary authority and bears fiduciary liability for the lineup it constructs, while the named fiduciary retains a duty to prudently select and monitor that manager

Question 5

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

Question 1

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Prepare with the QPFC Practice Questions - NAPA Qualified Plan Financial Consultant (QPFC) Exam practice quiz. This question bank includes 100 questions covering plan, fiduciary, erisa, investment, and advisor. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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

This practice set contains 100 questions from the matching question bank and focuses on plan, fiduciary, erisa, investment, and advisor. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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

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