105+ Free NZ CFS L5 Trustee Services Practice Questions

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NZ Certificate in Financial Services (Level 5) — Banking Strand

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2026 Statistics

Key Facts: NZ CFS L5 Trustee Services Exam

65 Credits

Total Credits (NZQA)

NZQA Qualification Framework

70%

Passing Benchmark

Tertiary Providers Standard

$2,200

Average Tuition Fee

Open Polytechnic / Strategi

125 Years

Maximum Trust Duration

Trusts Act 2019

$155k+int

Spousal Statutory Legacy

Administration Act 1969

Professional Code Standards

Code of Professional Conduct

The NZ Certificate in Financial Services (Level 5) Trustee Services strand is required under the FSLAA regime to provide trustee advice. It covers regulatory environments, trust law, wills, estate administration, and enduring powers of attorney. The qualification is self-paced, competency-based, and costs around $2,100-$2,800 NZD.

Sample NZ CFS L5 Trustee Services Practice Questions

Try these sample questions to test your NZ CFS L5 Trustee Services exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 105+ question experience with AI tutoring.

1Under the New Zealand Trusts Act 2019, what is the maximum duration (maximum life) that a trust can exist?

A.80 years

B.125 years

C.100 years

D.There is no limit; a trust can exist in perpetuity.

Explanation: Section 16 of the Trusts Act 2019 extends the maximum duration of a trust to 125 years, replacing the old rule against perpetuities.

2Under the Trusts Act 2019, which of the following is considered 'basic trust information' that trustees have a presumption to disclose to every beneficiary?

A.A full list of the trust's investment assets and bank balances.

B.The fact that the person is a beneficiary of the trust.

C.The historical reasons why the trust was established by the settlor.

D.A copy of the settlor's confidential Letter of Wishes.

Explanation: Under Section 51 of the Trusts Act 2019, 'basic trust information' includes the fact that the person is a beneficiary, the name and contact details of the trustees, and the right to request a copy of the trust deed or trust information.

3On what date did the New Zealand Trusts Act 2019 come into full force?

A.1 August 2019

B.1 January 2020

C.31 March 2022

D.30 January 2021

Explanation: The Trusts Act 2019 was passed in 2019 but did not come into full effect until 30 January 2021, providing a transitional period for trustees to prepare.

4What legislative act repealed and replaced the old Trustee Act 1956 in New Zealand?

A.The Trusts Act 2019

B.The Trust Law Reform Act 2018

C.The Administration Act 1969

D.The Fiduciary Duties Act 2020

Explanation: The Trusts Act 2019 modernizes trust law and completely repealed the outdated Trustee Act 1956.

5What is the legal term used to describe a trust created during a settlor's lifetime, as opposed to one created by a will?

A.A testamentary trust

B.A constructive trust

C.An inter vivos trust

D.An implied trust

Explanation: An 'inter vivos' trust (Latin for 'between the living') is established during the settlor's lifetime by a trust deed. A trust created under a will is a testamentary trust.

6Under New Zealand law, who is the person who creates and funds a trust?

A.The trustee

B.The beneficiary

C.The settlor

D.The administrator

Explanation: The settlor is the person who creates the trust by executing the trust deed and transferring the initial property to the trustees.

7When a trustee is deciding whether it is reasonable to withhold trust information from a beneficiary under Section 52 of the Trusts Act 2019, which of the following is NOT a statutory factor they must consider?

A.The current net asset value of the trust.

B.The age and circumstances of the beneficiary.

C.The expectations of the settlor when the trust was created.

D.The effect of disclosure on family relationships.

Explanation: Under Section 53 of the Trusts Act 2019, before deciding to withhold basic trust information (s 51) or refuse a request for trust information (s 52), the trustees must consider a list of 13 factors, including beneficiary age, settlor expectations, and family relationship impacts. The size or net asset value of the trust is not a statutory factor to justify withholding information.

8Under the Trusts Act 2019, if a trust has multiple trustees, which documents must every individual trustee keep?

A.All financial statements, tax records, and asset receipts.

B.Minutes of all trustee meetings and written resolutions.

C.The trust deed and any variations made to it.

D.All letters of wishes and communications with beneficiaries.

Explanation: Section 45 of the Trusts Act 2019 states that each trustee must keep a copy of the trust deed and any variations. Other documents can be held by at least one trustee, provided they are made available to the other trustees.

9Under the Trusts Act 2019, if a trustee wishes to distribute document retention duties among co-trustees, what is the minimum statutory requirement for core records?

A.Every trustee must hold the trust deed and variations, and ensure at least one trustee holds the other core records.

B.One trustee can hold all records, including the trust deed, with no copies required for others.

C.All trustees must hold duplicate physical copies of every single trust document.

D.Only the professional or corporate trustee is legally required to keep records.

Explanation: Under Sections 45 and 46 of the Trusts Act 2019, each trustee must keep the trust deed and any variations, while the other core records (financials, contracts, resolutions) can be held by at least one trustee who makes them available to others.

10What is the legal effect of the 'presumption of disclosure' under the Trusts Act 2019?

A.Trustees are legally prohibited from withholding any trust document requested by any beneficiary.

B.Trustees must automatically mail all trust deeds and financial accounts to every beneficiary on their 18th birthday.

C.Beneficiaries must apply to the High Court to gain access to basic trust information.

D.Trustees must regularly consider whether to disclose basic trust information and must provide it unless they decide it is not reasonable after considering statutory factors.

Explanation: The presumption under Section 51 is that trustees must give basic trust information to beneficiaries. However, they must first consider the statutory factors under Section 52 and decide if it is reasonable to withhold it.

About the NZ CFS L5 Trustee Services Exam

The New Zealand Certificate in Financial Services (Level 5) with the Trustee Services Strand is the benchmark qualification required to provide regulated financial advice on trustee services in New Zealand. The syllabus covers the regulatory framework (including FSLAA, FMCA, and the Code of Conduct), ethical behavior, client relationship management, trust law principles (including the Trusts Act 2019 mandatory and default duties, record keeping, and beneficiary disclosure), wills (Wills Act 2007), estate administration (Administration Act 1969), and enduring powers of attorney (PPPR Act 1988).

Assessment

100 multiple-choice questions representing the core and specialist modules

Time Limit

Self-paced

Passing Score

70%

Exam Fee

$2,100 NZD (New Zealand Qualifications Authority (NZQA) and accredited tertiary providers (Open Polytechnic, Strategi, Professional IQ))

NZ CFS L5 Trustee Services Exam Content Outline

30%

Core: Relationship, Communication & Ethics

Client engagement, ethical communication, client service, and professional conduct under Code Standards 1-10.

20%

Core: Regulatory Environment & FAP Rules

Financial Markets Conduct Act (FMCA), FSLAA regime, licensing, disclosure stages, and disputes schemes.

25%

Strand: Trust Law, Wills, and Trustee Duties

Trusts Act 2019, mandatory and default duties, Wills Act 2007 execution rules, witness rules, and revocation.

25%

Strand: Estate Administration & Enduring Powers of Attorney

Administration Act 1969 intestacy, Probate vs Letters of Administration, estate claims, and PPPR Act 1988 enduring powers of attorney.

How to Pass the NZ CFS L5 Trustee Services Exam

What You Need to Know

Passing score: 70%
Assessment: 100 multiple-choice questions representing the core and specialist modules
Time limit: Self-paced
Exam fee: $2,100 NZD

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

NZ CFS L5 Trustee Services Study Tips from Top Performers

1Master the 13 Code Standards of the Code of Professional Conduct, particularly suitability and client understanding.

2Understand the distinction between mandatory duties (which cannot be excluded) and default duties under the Trusts Act 2019.

3Familiarize yourself with the presumption of disclosure under the Trusts Act 2019, including the statutory factors for withholding information.

4Know the execution formalities of the Wills Act 2007, particularly the requirement for two independent witnesses, and the witness-beneficiary rule.

5Understand the statutory distribution priorities under the Administration Act 1969 for intestate estates, including the current statutory legacy of $155,000.

6Learn the rules for Enduring Powers of Attorney (EPAs) under the PPPR Act 1988, including witness certification and capacity triggers.

Frequently Asked Questions

What is the NZ Certificate in Financial Services (Level 5) Trustee Services Strand?

It is the benchmark qualification required under the New Zealand financial adviser regime (FSLAA) to give regulated financial advice to retail clients on trustee services, wills, estate administration, and trusts.

Who administers this qualification in New Zealand?

While the framework is overseen by the NZQA, the course is delivered by accredited tertiary providers, most notably the Open Polytechnic of New Zealand, Strategi Institute, and Professional IQ College.

What are the core topics covered in the syllabus?

The syllabus is split into a Core component (covering legislation like the FMCA, FSLAA, Privacy Act, and the Code of Conduct) and the Specialist Trustee Services strand (covering the Trusts Act 2019, Wills Act 2007, Administration Act 1969, and PPPR Act 1988).

Is the exam multiple-choice, and what is the passing score?

The official qualification uses coursework assessments and case studies to determine competency. However, preparation tests and provider exams typically use multiple-choice questions with a benchmark passing score of 70%.

What are the licensing requirements to practice as an adviser?

To advise retail clients, you must hold this Level 5 qualification and be registered on the FSPR as a Financial Adviser (FA) or work as a Nominated Representative under a licensed Financial Advice Provider (FAP).