AIF TEST BANK 2026 COMPLETE
QUESTIONS AND SOLUTIONS VERIFIED
RESULTS
●● ERISA
Answer: Type of Plan: Private Retirement
Oversight: DOL, IRS and Pension Benefit Guaranty
Common Plans: 401k, Private 403b, Profit Sharing , DB Plans, SEP &
SIMPLE
●● Taft-Hartley Act (1947)
Answer: Governed by ERISA
Labor Unions
●● UPIA: Uniform Prudent Investor Act
Answer: Applies to Private Trusts
Oversight by state Attorney General
●● UPMIFA: Uniform Prudent Management of Institutional Funds Act
Answer: Applies to charitable organization, endowments & private or
public foundations
Oversight by state Attorney General
,5% spending requirements=Modeled Return-inflation-investment
expenses
●● MMPERSA: Model Management of Public Employee Retirement
Systems Act
Answer: Applies to public employee retirement systems
NASRA National Association of State Retirement Administrators
●● Investment Advisers Act of 1940
Answer: Administered by SEC
Anti Fraud Powers
Federal law for larger investment advisers
●● Duty of Loyalty
Answer: Best Interest of Client
Acting in Good Faith
Avoid Conflicts or manage with client best interest
●● Duty of Care
Answer: Competence
Act with care, skill, prudence and diligence of prudent person
Documentation
, ●● Standards of Conduct & Code of Ethics-Pyramid
Answer: 1st-Personal Standards
2nd-Professional Organization Standards
3rd-Employer or Firm Standards
4-Federal, State & Self Reg Organization Laws & Regs
●● Trust Documents
Answer: Check with Legal if:
Prohibit certain asset classes
Require Socially Responsible Investing
Relieve Fiduciary to diversify
Establish requirement for income to beneficiaries
●● Fiduciary File
Answer: Disclosures, Marketing Stuff, Client Agreements, IPS, Minutes,
Trust Docs, Brokerage agreement, performance, prospectus and material
client communications
●● Fiduciary (Generally a Steward) Responsible for:
Answer: Confirm Investment Goals
Asset Allocation Strategy
IPS
Select Service Providers
QUESTIONS AND SOLUTIONS VERIFIED
RESULTS
●● ERISA
Answer: Type of Plan: Private Retirement
Oversight: DOL, IRS and Pension Benefit Guaranty
Common Plans: 401k, Private 403b, Profit Sharing , DB Plans, SEP &
SIMPLE
●● Taft-Hartley Act (1947)
Answer: Governed by ERISA
Labor Unions
●● UPIA: Uniform Prudent Investor Act
Answer: Applies to Private Trusts
Oversight by state Attorney General
●● UPMIFA: Uniform Prudent Management of Institutional Funds Act
Answer: Applies to charitable organization, endowments & private or
public foundations
Oversight by state Attorney General
,5% spending requirements=Modeled Return-inflation-investment
expenses
●● MMPERSA: Model Management of Public Employee Retirement
Systems Act
Answer: Applies to public employee retirement systems
NASRA National Association of State Retirement Administrators
●● Investment Advisers Act of 1940
Answer: Administered by SEC
Anti Fraud Powers
Federal law for larger investment advisers
●● Duty of Loyalty
Answer: Best Interest of Client
Acting in Good Faith
Avoid Conflicts or manage with client best interest
●● Duty of Care
Answer: Competence
Act with care, skill, prudence and diligence of prudent person
Documentation
, ●● Standards of Conduct & Code of Ethics-Pyramid
Answer: 1st-Personal Standards
2nd-Professional Organization Standards
3rd-Employer or Firm Standards
4-Federal, State & Self Reg Organization Laws & Regs
●● Trust Documents
Answer: Check with Legal if:
Prohibit certain asset classes
Require Socially Responsible Investing
Relieve Fiduciary to diversify
Establish requirement for income to beneficiaries
●● Fiduciary File
Answer: Disclosures, Marketing Stuff, Client Agreements, IPS, Minutes,
Trust Docs, Brokerage agreement, performance, prospectus and material
client communications
●● Fiduciary (Generally a Steward) Responsible for:
Answer: Confirm Investment Goals
Asset Allocation Strategy
IPS
Select Service Providers
