AIF UPDATED ACTUAL FINAL PAPER 2026
COMPLETE QUESTIONS AND ANSWERS
◉ What is fi360's simple definition of fiduciary?
A person responsible for managing assets
Any investment professional
A person responsible for managing a 401(k) plan
A person who manages someone else's money and who stands in a
special relationship of trust and legal responsibility. Answer: A
person who manages someone else's money and who stands in a
special relationship of trust and legal responsibility
◉ Which of the following safe harbor provisions are unique only to
the Fiduciary Adviser Safe Harbor?
A required annual audit of an eligible investment advice
arrangement
,Prudent experts must acknowledge their fiduciary status in writing
Prudent experts must be selected by a prudent due diligence process
The plan fiduciary must monitor the activities of prudent experts to
assure they are performing the roles for which they were selected.
Answer: A required annual audit of an eligible investment advice
arrangement
◉ Consider a defined contribution plan with five investment
options. With typical plan participant behavior in mind, which of the
following would almost certainly be appropriate:
"Age-based or risk-based fund
Mid-Cap equity growth separately managed account
Real estate fund
Stable value fund ". Answer: Age Based or Risk Based Fund
◉ The "Safe Harbor" provisions applicable to 404(c) include which
of the following:
,"Education on how to prudently diversify between options
The opportunity to change the strategy/allocation with a frequency
that is appropriate in light of market volatility
At least three different investment options
All of the above ". Answer: All of the above
◉ The decision of whether to implement with mutual funds or
separate account managers should include consideration of:
The dollar amount to be invested
Whether there is a requirement for audited financial information
The ease of conducting due diligence on the database
All of the above. Answer: All of the above
, ◉ The Prudent Practices for Investment Stewards and Investment
Advisors have been designed to be applicable to:
Private trusts
Foundations and endowments
Retirement plans
All of the above. Answer: All of the above
◉ What legislation requires investments to be managed solely in the
best interests of the participants/beneficiaries?
MPERS
UPIA
ERISA
All of the above. Answer: All of the Above
◉ Which of the following are responsibilities of the fiduciary even
when certain duties have been delegated to "prudent experts"?
Approving an appropriate asset allocation strategy
Monitoring the activities of the overall investment program for
compliance with the investment policy
COMPLETE QUESTIONS AND ANSWERS
◉ What is fi360's simple definition of fiduciary?
A person responsible for managing assets
Any investment professional
A person responsible for managing a 401(k) plan
A person who manages someone else's money and who stands in a
special relationship of trust and legal responsibility. Answer: A
person who manages someone else's money and who stands in a
special relationship of trust and legal responsibility
◉ Which of the following safe harbor provisions are unique only to
the Fiduciary Adviser Safe Harbor?
A required annual audit of an eligible investment advice
arrangement
,Prudent experts must acknowledge their fiduciary status in writing
Prudent experts must be selected by a prudent due diligence process
The plan fiduciary must monitor the activities of prudent experts to
assure they are performing the roles for which they were selected.
Answer: A required annual audit of an eligible investment advice
arrangement
◉ Consider a defined contribution plan with five investment
options. With typical plan participant behavior in mind, which of the
following would almost certainly be appropriate:
"Age-based or risk-based fund
Mid-Cap equity growth separately managed account
Real estate fund
Stable value fund ". Answer: Age Based or Risk Based Fund
◉ The "Safe Harbor" provisions applicable to 404(c) include which
of the following:
,"Education on how to prudently diversify between options
The opportunity to change the strategy/allocation with a frequency
that is appropriate in light of market volatility
At least three different investment options
All of the above ". Answer: All of the above
◉ The decision of whether to implement with mutual funds or
separate account managers should include consideration of:
The dollar amount to be invested
Whether there is a requirement for audited financial information
The ease of conducting due diligence on the database
All of the above. Answer: All of the above
, ◉ The Prudent Practices for Investment Stewards and Investment
Advisors have been designed to be applicable to:
Private trusts
Foundations and endowments
Retirement plans
All of the above. Answer: All of the above
◉ What legislation requires investments to be managed solely in the
best interests of the participants/beneficiaries?
MPERS
UPIA
ERISA
All of the above. Answer: All of the Above
◉ Which of the following are responsibilities of the fiduciary even
when certain duties have been delegated to "prudent experts"?
Approving an appropriate asset allocation strategy
Monitoring the activities of the overall investment program for
compliance with the investment policy
