AIF Exam (2027) UPDATE Verified Questions
And Answers | With 100% Correct Answers
graded A+ Guaranteed Success!!
Factors for Frequency of Reviews - ANSWER -1) Prevailing economic conditions
2)Size of Client Portfolio
3) Investment Strategies employed.
4) The Investment objectives
5) Volatility of the investments selected
6) Fiduciary or the regulatory obligations to client.
Investment Monitor Minimum - ANSWER -Quarterly
The Decision to Switch a Fund - ANSWER -Should not be based soley on
performance. What matters is having confidence that the investment will meet
expectations going forward.
Qualitative Reviews - ANSWER -1) Trade press or news reports on turnover in
management
2) Repeated enforcement actions taken against Org.
3) Quality of response to requests for information.
Investment Monitoring - ANSWER -1) Develop a process that can be applied to
both funds and separately managed accounts, so the advisor can easily migrate
from one universe to another.
2) Process that can be applied to any readily available databases on funds/
managed accounts.
3) Process that is simple to understand by clients and replicated outside the office.
4) Develop screens that can serve a dual purpose- apply to searches and
monitoring.
Alternative investments - ANSWER -Fiduciaries that invest in these investments
or complex strategies involving derivatives must possess and apple special
, analytical skills to fulfill their obligation of care because these investments are not
regulated.
When Alternative Investments are appropiate - ANSWER -Fiduciaries may
reasonably find that these investments offer sufficiently unique and attractive
diversification or return opportunities that justify taking on the heightened due
diligence challenges involved.
Erisa Prudence Requirement - ANSWER -Procedural Prudence and Substantive
Prudence
prudence - ANSWER -He or she probably avoids a fiduciary breach if a
"hypothetical prudent fiduciary" would have made the same decision anyway.
Indexed Annuities - ANSWER -There are a variety of charges associated with
these investments, they tend to be more expensive than investments that do not
have insurance features.
Fiduciary Advisor - ANSWER -person who provides investment advice to
participants or beneficiaries. Must be a RIA, bank or similar.
Eligible Investment Advice Arrangement - ANSWER -an arrangement between a
qualified plan sponsor and fiduciary adviser for the plan sponsor to avoid liability
for the advisors investment advice.
404(c) Requirements - ANSWER -1) Notified in writing, plan intends to be
404(c)
2) 3 Investment options, all different risk return profiles.
3) Participants must have opportunity to give investment directions to a fiduciary
who is obligated to comply with intructions
4)If any investment alternatives permits change more than once every 3 months, at
least one of the 3 investments described above must permit the same frequency of
change in which the participants can transfer must be income producing, low risk
and liquid.
5) Must have right to diversify
And Answers | With 100% Correct Answers
graded A+ Guaranteed Success!!
Factors for Frequency of Reviews - ANSWER -1) Prevailing economic conditions
2)Size of Client Portfolio
3) Investment Strategies employed.
4) The Investment objectives
5) Volatility of the investments selected
6) Fiduciary or the regulatory obligations to client.
Investment Monitor Minimum - ANSWER -Quarterly
The Decision to Switch a Fund - ANSWER -Should not be based soley on
performance. What matters is having confidence that the investment will meet
expectations going forward.
Qualitative Reviews - ANSWER -1) Trade press or news reports on turnover in
management
2) Repeated enforcement actions taken against Org.
3) Quality of response to requests for information.
Investment Monitoring - ANSWER -1) Develop a process that can be applied to
both funds and separately managed accounts, so the advisor can easily migrate
from one universe to another.
2) Process that can be applied to any readily available databases on funds/
managed accounts.
3) Process that is simple to understand by clients and replicated outside the office.
4) Develop screens that can serve a dual purpose- apply to searches and
monitoring.
Alternative investments - ANSWER -Fiduciaries that invest in these investments
or complex strategies involving derivatives must possess and apple special
, analytical skills to fulfill their obligation of care because these investments are not
regulated.
When Alternative Investments are appropiate - ANSWER -Fiduciaries may
reasonably find that these investments offer sufficiently unique and attractive
diversification or return opportunities that justify taking on the heightened due
diligence challenges involved.
Erisa Prudence Requirement - ANSWER -Procedural Prudence and Substantive
Prudence
prudence - ANSWER -He or she probably avoids a fiduciary breach if a
"hypothetical prudent fiduciary" would have made the same decision anyway.
Indexed Annuities - ANSWER -There are a variety of charges associated with
these investments, they tend to be more expensive than investments that do not
have insurance features.
Fiduciary Advisor - ANSWER -person who provides investment advice to
participants or beneficiaries. Must be a RIA, bank or similar.
Eligible Investment Advice Arrangement - ANSWER -an arrangement between a
qualified plan sponsor and fiduciary adviser for the plan sponsor to avoid liability
for the advisors investment advice.
404(c) Requirements - ANSWER -1) Notified in writing, plan intends to be
404(c)
2) 3 Investment options, all different risk return profiles.
3) Participants must have opportunity to give investment directions to a fiduciary
who is obligated to comply with intructions
4)If any investment alternatives permits change more than once every 3 months, at
least one of the 3 investments described above must permit the same frequency of
change in which the participants can transfer must be income producing, low risk
and liquid.
5) Must have right to diversify
