Certified Plan Sponsor Professional (CPSP) Practice Exam

What services are generally included in the scope of an ERISA Sec. 3(38) Investment manager?

1. Selection, monitoring, and managing plan investments

2. Audit and compliance review of plan documents

3. Employee training on investment strategies

4. Legal advice on tax implications

The correct answer is: Selection, monitoring, and managing plan investments

An ERISA Section 3(38) investment manager is designated as a fiduciary responsible for the selection, monitoring, and management of plan investments. This designation indicates that the investment manager has the authority to make investment decisions on behalf of the plan, acting in the best interest of the plan participants. The core responsibilities include evaluating various investment options, deciding where to allocate the plan's assets, and continuously monitoring the investment performance and adherence to investment policies. By assuming this fiduciary role, the investment manager relieves the plan sponsor of a significant portion of the investment-related responsibilities, allowing them to focus on other aspects of plan management. While options related to audit and compliance, employee training, and legal advice may be important for a comprehensive retirement plan management strategy, they fall outside the primary scope of responsibilities for a 3(38) investment manager. Their primary function is specifically tied to investment management rather than these ancillary services.