CPC Ethics & Professional Standards Flashcards
6 cards from real CPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPC Ethics & Professional Standards flashcards as text
A CPC is asked to provide an opinion on a plan design that he believes may violate ERISA's coverage requirements. What should he do?
Answer: Provide the opinion with a clear statement of the legal concern and recommend the client obtain legal counsel
Professional standards require the CPC to provide honest advice that includes identifying the potential ERISA compliance risk and recommending the client consult legal counsel for a definitive legal opinion.
Under what circumstances may a CPC disclose confidential client plan information without client consent?
Answer: When required by law, court order, or professional disciplinary proceedings
Confidential client information may be disclosed without consent only when compelled by law, court order, or required by professional oversight bodies in disciplinary proceedings.
Which of the following best describes a 'conflict of interest' for a pension consultant?
Answer: A situation where the consultant's personal or business interests could improperly influence professional judgment
A conflict of interest arises when a consultant has a personal, financial, or business interest that could compromise—or appear to compromise—their objective professional judgment.
A CPC transitions a client to another pension consultant. What ethical obligation exists regarding client files and records?
Answer: The CPC must cooperate in the orderly transition of files and records to protect the client's interests
Professional standards require cooperation in client transitions, including providing files and records needed to ensure continuity of service for the client's benefit.
When a CPC relies on work product provided by another professional (e.g., a valuation from an appraiser), what is the CPC's responsibility?
Answer: The CPC must assess whether reliance is reasonable and disclose the reliance in their own work product
Professional standards allow reliance on other experts when the reliance is reasonable and disclosed; the CPC need not independently replicate the work but must use professional judgment about its reasonableness.
The ASPPA Code of Conduct requires CPCs to be 'competent' when providing services. What does competence require?
Answer: Possessing the knowledge, skills, and experience necessary for the specific engagement
Competence means having the technical knowledge, practical skills, and relevant experience to perform the specific services being offered, and recognizing when to refer clients to others.