BRAINSCAPE1
AIF Exam with complete solutions
latest version
What make you a Fiduciary? - CORRECT ANSWER-Being named fiduciary in
governing docs
Providing personalized investment advice for compensation
Exercising investment discretion
Having authority to appoint other fiduciaries
ERISA - CORRECT 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) - CORRECT ANSWER-Governed by ERISA
Labor Unions
UPIA: Uniform Prudent Investor Act - CORRECT ANSWER-Applies to Private Trusts
Oversight by state Attorney General
UPMIFA: Uniform Prudent Management of Institutional Funds Act - CORRECT
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 -
CORRECT ANSWER-Applies to public employee retirement systems
NASRA National Association of State Retirement Administrators
Investment Advisers Act of 1940 - CORRECT ANSWER-Administered by SEC
Anti Fraud Powers
Federal law for larger investment advisers
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Duty of Loyalty - CORRECT ANSWER-Best Interest of Client
Acting in Good Faith
Avoid Conflicts or manage with client best interest
Duty of Care - CORRECT ANSWER-Competence
Act with care, skill, prudence and diligence of prudent person
Documentation
Standards of Conduct & Code of Ethics-Pyramid - CORRECT ANSWER-1st-Personal
Standards
2nd-Professional Organization Standards
3rd-Employer or Firm Standards
4-Federal, State & Self Reg Organization Laws & Regs
Trust Documents - CORRECT 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 - CORRECT ANSWER-Disclosures, Marketing Stuff, Client Agreements,
IPS, Minutes, Trust Docs, Brokerage agreement, performance, prospectus and material
client communications
Fiduciary (Generally a Steward) Responsible for: - CORRECT ANSWER-Confirm
Investment Goals
Asset Allocation Strategy
IPS
Select Service Providers
Reasonable Expenses
Monitoring
Avoid conflicts & prohibited transactions
ERISA Fiduciaries - CORRECT ANSWER-3-16 Administrator
3-38 Investment Manager-discretion on assets
3-21 Fiduciary-makes recommendations or advices
ERISA 408(b)(2) - CORRECT ANSWER-Disclosure of fees and services
Investment Committee Needs - CORRECT ANSWER-Provide Clear Operating &
procedural guidelines
Pay to Play Schemes - CORRECT ANSWER-Broker Pay to Play: SEC charges broker
dealers preferred list of mutual funds
Politician Pay to play: contributions to politicians in exchange for access to public funds
Consultant Pay to play: selling services to money managers-most egregious
BRAINSCAPE1
AIF Exam with complete solutions
latest version
What make you a Fiduciary? - CORRECT ANSWER-Being named fiduciary in
governing docs
Providing personalized investment advice for compensation
Exercising investment discretion
Having authority to appoint other fiduciaries
ERISA - CORRECT 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) - CORRECT ANSWER-Governed by ERISA
Labor Unions
UPIA: Uniform Prudent Investor Act - CORRECT ANSWER-Applies to Private Trusts
Oversight by state Attorney General
UPMIFA: Uniform Prudent Management of Institutional Funds Act - CORRECT
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 -
CORRECT ANSWER-Applies to public employee retirement systems
NASRA National Association of State Retirement Administrators
Investment Advisers Act of 1940 - CORRECT ANSWER-Administered by SEC
Anti Fraud Powers
Federal law for larger investment advisers
BRAINSCAPE1
, BRAINSCAPE1
Duty of Loyalty - CORRECT ANSWER-Best Interest of Client
Acting in Good Faith
Avoid Conflicts or manage with client best interest
Duty of Care - CORRECT ANSWER-Competence
Act with care, skill, prudence and diligence of prudent person
Documentation
Standards of Conduct & Code of Ethics-Pyramid - CORRECT ANSWER-1st-Personal
Standards
2nd-Professional Organization Standards
3rd-Employer or Firm Standards
4-Federal, State & Self Reg Organization Laws & Regs
Trust Documents - CORRECT 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 - CORRECT ANSWER-Disclosures, Marketing Stuff, Client Agreements,
IPS, Minutes, Trust Docs, Brokerage agreement, performance, prospectus and material
client communications
Fiduciary (Generally a Steward) Responsible for: - CORRECT ANSWER-Confirm
Investment Goals
Asset Allocation Strategy
IPS
Select Service Providers
Reasonable Expenses
Monitoring
Avoid conflicts & prohibited transactions
ERISA Fiduciaries - CORRECT ANSWER-3-16 Administrator
3-38 Investment Manager-discretion on assets
3-21 Fiduciary-makes recommendations or advices
ERISA 408(b)(2) - CORRECT ANSWER-Disclosure of fees and services
Investment Committee Needs - CORRECT ANSWER-Provide Clear Operating &
procedural guidelines
Pay to Play Schemes - CORRECT ANSWER-Broker Pay to Play: SEC charges broker
dealers preferred list of mutual funds
Politician Pay to play: contributions to politicians in exchange for access to public funds
Consultant Pay to play: selling services to money managers-most egregious
BRAINSCAPE1
