NAPA CPFA Certification Exam
(Certified Plan Fiduciary Advisor)
2026/2027 | Certified Plan Fiduciary
Advisor | Verified Questions &
Answers | Grade A
What are the 4 basic fiduciary standards under the Fiduciary Standard of Care? (Section 404)
1.) Loyalty - (Exclusive purpose rule - Providing benefits to participants and their beneficiaries;
and defraying reasonable expenses of administering the plan)
2.) Prudence - (Act with prudence by investigating before making any plan decisions,
documenting the decision-making process, hiring experts when they don't possess the knowledge
or skills to make a decision, and monitoring if their decisions are still ideal based on the
exclusive purpose rule and taking action if not
3.) Diversification - (Diversify investment in a prudent manner in order to minimize risk;
Investment factors may include purpose of plan, amount of assets, investment acumen of the
participants and participant demographics
4.) Following the plan's governing documents - (Follow plan documents to the extent that they
are not contrary to ERISA rules)
How many fiduciaries does a retirement plan?
All retirement plans have one or more fiduciaries
Plan fiduciaries have a legal obligation to operate the plan on behalf of ...? (Primary rule of
ERISA)
Plan participants and their beneficiaries, and not on behalf of owners, the employer, or key
employees
