AIF Overview correct questions with assured solutions A+
Grade
Standard of Care - Fiduciary
- correct answer 1-Principles and relationship based
2-Undivided duty of loyalty to client:
• Avoid or manage conflicts
• Greater transparency of conflicts
3-Duty of care of a prudent expert with utmost good faith:
• Prudent expert standard
• Advice must be suitable and in clients best interests
Standard of Care - Fair Dealing
- correct 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
- correct answer the investment process FI360 designed to ensure investment decisions are prudently
managed.
Investment Fiduciary
- correct 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
- correct answer manage the overall investment decision-making process
, Investment Advisors
- correct answer professionals who provide comprehensive and continuous advice to Stewards.
Investment Managers
- correct answer make securities transaction decisions and generally act with discretion.
How many investment Stewards?
- correct answer more than five million men and women, responsible for managing more than 80% of
the nation's liquid invested assets.
Examples of Stewards
- correct 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
- correct answer Approximately 317,000* investment advisors as of 2011
Examples of Investment Advisors
- correct answer - wealth managers
- financial advisors
- trust officers
- financial consultants
- investment consultants
- financial planners
Grade
Standard of Care - Fiduciary
- correct answer 1-Principles and relationship based
2-Undivided duty of loyalty to client:
• Avoid or manage conflicts
• Greater transparency of conflicts
3-Duty of care of a prudent expert with utmost good faith:
• Prudent expert standard
• Advice must be suitable and in clients best interests
Standard of Care - Fair Dealing
- correct 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
- correct answer the investment process FI360 designed to ensure investment decisions are prudently
managed.
Investment Fiduciary
- correct 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
- correct answer manage the overall investment decision-making process
, Investment Advisors
- correct answer professionals who provide comprehensive and continuous advice to Stewards.
Investment Managers
- correct answer make securities transaction decisions and generally act with discretion.
How many investment Stewards?
- correct answer more than five million men and women, responsible for managing more than 80% of
the nation's liquid invested assets.
Examples of Stewards
- correct 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
- correct answer Approximately 317,000* investment advisors as of 2011
Examples of Investment Advisors
- correct answer - wealth managers
- financial advisors
- trust officers
- financial consultants
- investment consultants
- financial planners
