AIF EXAM SCRIPT 2026 QUESTIONS WITH
SOLUTIONS 100% CORRECT
◉ Standard of Care - Fair Dealing. Answer: 1- Rules and transaction-
based
• Arms-length relationship
2 - Divided loyalty of agent between firm and customer:
• Conflicts may exist unmanaged and undisclosed
3 - Deal fairly, consistent with industry suitability standard:
• Suitability standard rapidly evolving
◉ Global Fiduciary Standards of Excellence. Answer: the investment
process FI360 designed to ensure investment decisions are prudently
managed.
◉ Investment Fiduciary. Answer: someone who is managing the assets
of another person and stands in a special relationship of trust,
confidence, and /or legal responsibility.
◉ Investment Stewards. Answer: manage the overall investment
decision-making process
,◉ Investment Advisors. Answer: professionals who provide
comprehensive and continuous advice to Stewards.
◉ Investment Managers. Answer: make securities transaction decisions
and generally act with discretion.
◉ How many investment Stewards?. Answer: more than five million
men and women, responsible for managing more than 80% of the
nation's liquid invested assets.
◉ Examples of Stewards. Answer: individuals who serve as:
• trustees;
• committee members for endowments, foundations, and
other institutional accounts;
• plan sponsors; or
• who occupy similar positions entrusted with managing
assets for others.
• stand at the top of the fiduciary pecking order.
◉ How many Investment Advisors. Answer: Approximately 317,000*
investment advisors as of 2011
◉ Examples of Investment Advisors. Answer: - wealth managers
, - financial advisors
- trust officers
- financial consultants
- investment consultants
- financial planners
◉ Defining characteristic of Investment Advisors. Answer: Prudent
Experts who give comprehensive and continuous advice
◉ How many Investment Managers. Answer: There are more than
16,400 investment companies in the U.S employing
◉ Examples of Investment Managers. Answer: - mutual fund managers
- exchange traded fund (ETFs) managers
- separately managed accounts managers
◉ Defining characteristic of Investment Manager. Answer: Prudent
experts who exercise discretion
◉ What Fiduciary duty do Stewards and Advisors have?. Answer:
Stewards and Advisors have a fiduciary duty to demonstrate that the
Investment Managers they use have been prudently selected and are
monitored on an ongoing basis.
SOLUTIONS 100% CORRECT
◉ Standard of Care - Fair Dealing. Answer: 1- Rules and transaction-
based
• Arms-length relationship
2 - Divided loyalty of agent between firm and customer:
• Conflicts may exist unmanaged and undisclosed
3 - Deal fairly, consistent with industry suitability standard:
• Suitability standard rapidly evolving
◉ Global Fiduciary Standards of Excellence. Answer: the investment
process FI360 designed to ensure investment decisions are prudently
managed.
◉ Investment Fiduciary. Answer: someone who is managing the assets
of another person and stands in a special relationship of trust,
confidence, and /or legal responsibility.
◉ Investment Stewards. Answer: manage the overall investment
decision-making process
,◉ Investment Advisors. Answer: professionals who provide
comprehensive and continuous advice to Stewards.
◉ Investment Managers. Answer: make securities transaction decisions
and generally act with discretion.
◉ How many investment Stewards?. Answer: more than five million
men and women, responsible for managing more than 80% of the
nation's liquid invested assets.
◉ Examples of Stewards. Answer: individuals who serve as:
• trustees;
• committee members for endowments, foundations, and
other institutional accounts;
• plan sponsors; or
• who occupy similar positions entrusted with managing
assets for others.
• stand at the top of the fiduciary pecking order.
◉ How many Investment Advisors. Answer: Approximately 317,000*
investment advisors as of 2011
◉ Examples of Investment Advisors. Answer: - wealth managers
, - financial advisors
- trust officers
- financial consultants
- investment consultants
- financial planners
◉ Defining characteristic of Investment Advisors. Answer: Prudent
Experts who give comprehensive and continuous advice
◉ How many Investment Managers. Answer: There are more than
16,400 investment companies in the U.S employing
◉ Examples of Investment Managers. Answer: - mutual fund managers
- exchange traded fund (ETFs) managers
- separately managed accounts managers
◉ Defining characteristic of Investment Manager. Answer: Prudent
experts who exercise discretion
◉ What Fiduciary duty do Stewards and Advisors have?. Answer:
Stewards and Advisors have a fiduciary duty to demonstrate that the
Investment Managers they use have been prudently selected and are
monitored on an ongoing basis.
