AIF UPDATED ACTUAL COMPREHENSIVE EXAM
SCRIPT 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Standard of Care - Fair Dealing (Rule focused) Answer: - Rules and
transaction based
- Arms-length relationship (between worker and client)
- Divided loyalty of agent between firm and customer
- Deal fairly, consistent with industry suitability standard
Generally apply to Investment Firms, and their agents selling
investments and related products
◉ Breech of Contract on Fiduciary. Answer: An investigation will
take place to observe if the professional was acting on behalf of the
best interest for the client(s).
◉ Who enforces the fiduciary laws? Answer: - ERISA (Employee
Retirement Income Security Act)
- UPIA (Uniform Prudent Investor Act)
- UPMIFA (Uniform Prudent Management of Institutional Funds Act)
- MMPERSA (Uniform Management of Public Employees Retirement
Systems Act)
,- IAA (The Investment Advisors Act of 1940)
◉ Global Fiduciary Precepts Answer: 1. Follow laws and governing
documents
2. Diversify to manage risk and return
3. Prepare and follow an investment policy statement
4. Prudently select fiduciary and non-fiduciary service providers
5. Control and account for costs
6. Avoid or manage conflicts of interest
7. Monitor service providers
8. Monitor and assure conformity to fiduciary obligations
◉ Purpose of the AIF Certification Answer: To assure that those
responsible for managing or advising on investor assets have a
fundamental understanding of the principles of fiduciary duty, the
standard of conduct for acting as a fiduciary, and a process for
carrying out fiduciary responsibility.
◉ How often must the AIF designation overview be updated at
minimum? Answer: Every five years, but annually is ideal.
◉ Four Steps of Job Task Analysis Answer: - Organize
- Formalize
,- Implement
- Monitor
◉ What concept is the AIF quality management system derived
from? Answer: ISO standard 9000
◉ Investment Stewards Answer: Manage the overall investment
decision-making process and included the trustees, investment
committee members, plan sponsors, and others appointed with
ultimate decision-making responsibilities. Even when stewards
delegate responsibilities to professionals, it is still their core duty to
oversee those professionals and to ensure a full fiduciary process is
being carried out prudently.
◉ Investment Advisors Answer: Professionals who provide advice to
stewards, including wealth managers, financial advisors, trust
officers, investment consultants, financial consultants, trust officers
and financial planners.
The practices for advisors and stewards are virtually identical.
◉ Investment Managers Answer: Make securities transaction
decisions for separate accounts, mutual funds or ETF's, commingled
trusts, and unit trusts and generally act with discretion.
, ◉ Six Practices of Organize Answer: - Understanding the sources of
fiduciary requirements
- Following governing documents
- Defining individual roles and responsibilities
- Addressing conflicts of interest
- Entering appropriate service provider agreements
- Protecting client information and assets
◉ Criterion 1.1.1 Answer: The investment advisor complies with all
laws and rules that apply to the services the advisor is providing.
◉ What makes someone a Fiduciary? Answer: - Being names as a
fiduciary in governing documents
- Providing personalized investment advice for compensation
- Exercising investment discretion
- Having authority to appoint other fiduciaries
◉ T / F: Your actions could subject you to fiduciary accountability
even if you are unaware and had intended to remain in a non-
fiduciary role. Answer: True. If a person performs a fiduciary
functions, they could be held accountable to a fiduciary standard of
care for their actions, even if they were unaware and did not intend
to act as a fiduciary.
SCRIPT 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Standard of Care - Fair Dealing (Rule focused) Answer: - Rules and
transaction based
- Arms-length relationship (between worker and client)
- Divided loyalty of agent between firm and customer
- Deal fairly, consistent with industry suitability standard
Generally apply to Investment Firms, and their agents selling
investments and related products
◉ Breech of Contract on Fiduciary. Answer: An investigation will
take place to observe if the professional was acting on behalf of the
best interest for the client(s).
◉ Who enforces the fiduciary laws? Answer: - ERISA (Employee
Retirement Income Security Act)
- UPIA (Uniform Prudent Investor Act)
- UPMIFA (Uniform Prudent Management of Institutional Funds Act)
- MMPERSA (Uniform Management of Public Employees Retirement
Systems Act)
,- IAA (The Investment Advisors Act of 1940)
◉ Global Fiduciary Precepts Answer: 1. Follow laws and governing
documents
2. Diversify to manage risk and return
3. Prepare and follow an investment policy statement
4. Prudently select fiduciary and non-fiduciary service providers
5. Control and account for costs
6. Avoid or manage conflicts of interest
7. Monitor service providers
8. Monitor and assure conformity to fiduciary obligations
◉ Purpose of the AIF Certification Answer: To assure that those
responsible for managing or advising on investor assets have a
fundamental understanding of the principles of fiduciary duty, the
standard of conduct for acting as a fiduciary, and a process for
carrying out fiduciary responsibility.
◉ How often must the AIF designation overview be updated at
minimum? Answer: Every five years, but annually is ideal.
◉ Four Steps of Job Task Analysis Answer: - Organize
- Formalize
,- Implement
- Monitor
◉ What concept is the AIF quality management system derived
from? Answer: ISO standard 9000
◉ Investment Stewards Answer: Manage the overall investment
decision-making process and included the trustees, investment
committee members, plan sponsors, and others appointed with
ultimate decision-making responsibilities. Even when stewards
delegate responsibilities to professionals, it is still their core duty to
oversee those professionals and to ensure a full fiduciary process is
being carried out prudently.
◉ Investment Advisors Answer: Professionals who provide advice to
stewards, including wealth managers, financial advisors, trust
officers, investment consultants, financial consultants, trust officers
and financial planners.
The practices for advisors and stewards are virtually identical.
◉ Investment Managers Answer: Make securities transaction
decisions for separate accounts, mutual funds or ETF's, commingled
trusts, and unit trusts and generally act with discretion.
, ◉ Six Practices of Organize Answer: - Understanding the sources of
fiduciary requirements
- Following governing documents
- Defining individual roles and responsibilities
- Addressing conflicts of interest
- Entering appropriate service provider agreements
- Protecting client information and assets
◉ Criterion 1.1.1 Answer: The investment advisor complies with all
laws and rules that apply to the services the advisor is providing.
◉ What makes someone a Fiduciary? Answer: - Being names as a
fiduciary in governing documents
- Providing personalized investment advice for compensation
- Exercising investment discretion
- Having authority to appoint other fiduciaries
◉ T / F: Your actions could subject you to fiduciary accountability
even if you are unaware and had intended to remain in a non-
fiduciary role. Answer: True. If a person performs a fiduciary
functions, they could be held accountable to a fiduciary standard of
care for their actions, even if they were unaware and did not intend
to act as a fiduciary.
