CFIRS I QUESTIONS AND ANSWERS

Employee Benefit and Retirement Accounts - Answer-Which of the following types of accounts make up the majority of non-managed asset products? Investment Management & Advisory Accounts - Answer-Which of the following types of accounts make up the majority of managed asset products? Legislation - Answer-_______________is a law which has been enacted by a legislature and signed into law by the governor or president. Regulation - Answer-___________ is a rule created by an administrative agency or body. The rule interprets the statutes (laws) setting out the agency's purpose and powers or the circumstances of applying the statute. Self-regulatory Agencies - Answer-_________ have authority to create rules based on laws and regulations over a specific industry or profession. 12 U.S.C - Answer-Which section of the United States Code governs banks and banking? 17 C.F.R. - Answer-Which section of the Code of Federal Regulations governs securities and exchanges? Uniform Trust Code - Answer-Which of the following uniform state laws is responsible for the regulation fiduciary practices or trust companies? State Banking Department and FDIC - Answer-Who is/are the primary government regulator(s) for a state non-member bank? Federal Reserve and State Banking Department - Answer-Who is/are the primary government regulator(s) for a state, Fed member bank?Comptroller of the Currency (OCC) - Answer-The power to regulate and supervise national bank Trust Departments is vested in the Trust Indenture Act of 1939 - Answer-Which Act addresses the issue of conflict of interest for trustees under debit financing? municipal bond issues - Answer-The Trust Indenture Act does NOT apply to blue sky laws - Answer-State laws concerning the registration and issuance of securities are known as Securities Act of 1933 - Answer-What act is sometimes called the "truth in securities" act? restricting the use of credit for securities purchases - Answer-The Federal Reserve Board affects securities transactions by Securities Acts Amendments of 1975 - Answer-Under what Act was the SEC authorized to adopt rules and regulations governing the conduct of transfer agents and to enforce compliance? upon acceptance of the account( interpreted by regulators as occurring within 60 days of minor funding of the trust). - Answer-As trustee with investment responsibility, a national bank should perform an initial post-acceptance review all the assets of a new account for suitability to meet investment objectives document - Answer-Which of the following is not required in the creation of a trust? courts - Answer-Common law is created by constructive - Answer-Which of the following are ways in which a trust can be created? duty to keep beneficiaries informed - Answer-Which of the following duties of a trustee require them to provide the beneficiaries with regular updates regarding the trust and its assets?Prudent Man Rule - Answer-Which of the following rules was the result of the Harvard vs Amory Case? courts - Answer-In order for the trustees to make changes to the trust based on needs that have changed or the changing of times, who must they get approval form? all income is distributed annually - Answer-A simple trust is one where under the common law liable for acts of predecessor trustees if they fail to redress - Answer-Successor trustees are the terms of the trust alter that duty - Answer-The trustee has a duty to be impartial among beneficiaries unless contingent beneficiaries - Answer-A person whose interest to benefit from a trust is conditional upon some future occurrence which may or may not take place is called a