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
Which professional organization publishes the Code of Professional Conduct that governs enrolled actuaries working on pension plans?
Answer: The American Academy of Actuaries (AAA)
The American Academy of Actuaries publishes the Code of Professional Conduct, which applies to all actuaries including enrolled actuaries advising on pension plans.
An enrolled actuary signs a Schedule SB for a plan with a known material actuarial error. What is the correct professional response?
Answer: Refuse to sign and advise the plan administrator of the error
Enrolled actuaries have a professional duty not to certify a return containing a known material error; they must refuse to sign and advise the client to correct the filing.
A CPC who discovers that a plan sponsor has engaged in a prohibited transaction should do what?
Answer: Advise the plan sponsor of the violation and recommend corrective action, including VCP or VFCP filing
A CPC should inform the plan sponsor of the prohibited transaction, advise on the consequences, and recommend available correction programs such as the DOL's Voluntary Fiduciary Correction Program (VFCP).
Under ASPPA's Code of Professional Conduct, what obligation does a CPC have when providing written advice?
Answer: Written advice must be balanced, state material assumptions, and identify significant limitations
ASPPA's Code requires that written professional advice be complete, accurate, and clearly state material assumptions, methods, and significant limitations or uncertainties.
A pension consultant receives a referral fee from an investment firm for recommending the firm's collective investment trusts. Under DOL guidance, what must the consultant do?
Answer: Disclose the fee arrangement to plan fiduciaries and ensure the arrangement is reasonable
ERISA Section 408(b)(2) requires that service providers receiving indirect compensation disclose such arrangements to plan fiduciaries to allow informed decision-making.
What is the primary purpose of ASPPA's CPE (continuing professional education) requirements for CPC credential holders?
Answer: To ensure credential holders maintain current knowledge of laws, regulations, and best practices relevant to their work
CPE requirements ensure that CPC credential holders remain current with evolving pension law, regulations, and professional standards essential to competent client service.