Fiduciary Training Part 1 Quiz

1. Which federal agency enforces the fiduciary duties outlined in ERISA?
   A) SEC
   B) IRS
   C) Department of Labor
   D) FINRA
2. ERISA is often referred to as the law of _____.
   A) Maybe
   B) Yes
   C) No
   D) Compromise
3. Which plans does ERISA apply to? (Select the best answer)
   A) Defined benefit plans only
   B) Defined contribution plans only
   C) Health and welfare plans only
   D) All of the above
4. Which of the following is NOT typically a fiduciary party?
   A) Named Fiduciary
   B) Plan Administrator
   C) Recordkeeper
   D) Trustee
5. Who is typically the named fiduciary of a retirement plan?
   A) The recordkeeper
   B) The plan sponsor
   C) The investment advisor
   D) The DOL
6. Which is a key duty of a fiduciary under ERISA?
   A) Duty of Charity
   B) Duty of Prudence
   C) Duty of Marketing
   D) Duty of Flexibility
7. The duty of loyalty requires fiduciaries to act:
   A) For the employer’s profit
   B) Solely in the interest of participants and beneficiaries
   C) For the interests of service providers
   D) In a way that benefits company shareholders
8. The duty of prudence is often referred to as what type of standard?
   A) “Reasonable person” standard
   B) “Prudent expert” standard
   C) “Common sense” standard
   D) “Good faith” standard
9. Under ERISA, fiduciaries are required to diversify plan investments to:
   A) Maximize returns only
   B) Minimize administrative work
   C) Minimize the risk of large losses
   D) Avoid prohibited transactions
10. Which of the following is a fiduciary act?
    A) Amending the plan
    B) Selecting and monitoring investment options
    C) Designing the plan’s loan provisions
    D) Deciding the employer match rate
11. Plan design decisions, like setting eligibility requirements, are considered:
    A) Fiduciary functions
    B) Settlor functions
    C) Co-fiduciary functions
    D) Participant duties
12. Who must be bonded to protect the plan against loss from fraud or dishonesty?
    A) Only the trustee
    B) Every plan fiduciary and persons handling plan assets
    C) Only the recordkeeper
    D) Only the plan sponsor
13. What is the minimum bonding amount required for fiduciaries handling plan assets?
    A) $500
    B) $1,000
    C) $5,000
    D) $10,000
14. A fiduciary breach may result in:
    A) Automatic plan termination
    B) A warning letter only
    C) Personal liability and restoration of losses
    D) No consequences if unintentional
15. Prohibited transactions under ERISA include:
    A) Paying plan expenses
    B) Self-dealing by a fiduciary
    C) Diversifying investments
    D) Documenting decisions
16. Which document outlines a plan’s investment strategy and monitoring process?
    A) IRS Determination Letter
    B) Summary Plan Description
    C) Investment Policy Statement
    D) Adoption Agreement
17. How often should a fiduciary review the plan’s investments at minimum?
    A) Monthly
    B) Quarterly
    C) Annually
    D) Every five years
18. Which of the following expenses can generally be charged against plan assets?
    A) Settlor function expenses
    B) Employer payroll taxes
    C) Fiduciary function expenses
    D) Marketing costs
19. A fiduciary may delegate investment management to a Section ____ investment manager.
    A) 3(16)
    B) 3(21)
    C) 3(38)
    D) 401(a)
20. Under ERISA, a fiduciary must act in accordance with plan documents as long as:
    A) It benefits the employer
    B) It is consistent with ERISA provisions
    C) It reduces plan costs
    D) The plan has under 100 participants