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AIF Training Exam Questions & Answers, Well
Elaborated | Already Verified Test |100% Verified
solutions | 2025\2026 Latest!!
A due diligence philosophy for selecting investment options
should incorporate all of the following EXCEPT:
Select one:
1. The same process for mutual funds and separate account
managers
2. Screens that have dual application for search and monitoring
3. A simple process that can be replicated in the field
4. Special consideration for mutual funds or separate account
managers that have close ties to the federal government - . .
ANSWER ✓✓ Special consideration for mutual funds or separate
account managers that have close ties to the federal government
A due diligence philosophy for selecting investment options
should incorporate all of the following EXCEPT:
Select one:
1. Screens that have dual application for search and monitoring
2. Special consideration for mutual funds or separate account
managers that have strong marketing departments
3. A simple process that can be replicated in the field
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4. The same process for mutual funds and separate account
managers - . . ANSWER ✓✓ search.
A fiduciary or co-fiduciary cannot be held responsible for a
breach of their fiduciary responsibility if they can demonstrate
they were not aware of a particular duty or requirement. T or F -
. . ANSWER ✓✓ F - Ignorance is not a viable defense.
A trustee might NOT be acting in a fiduciary capacity if that
trustee is a:
Select one:
1. Directed trustee
2. Court appointed trustee
3. Trustee of an institutional trust
4. Trustee of a personal Trust - . . ANSWER ✓✓ Directed trustee
All available safe harbors:
Select one:
1. Require legal approval
2. Are voluntary
3. Protect the fiduciary from liability
4. Were enacted prior to 2006 - . . ANSWER ✓✓ Are voluntary
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All safe harbors are: 1) voluntary; 2) may insulate the fiduciary
from liability; and 3) require the fiduciary to demonstrate
compliance with defined requirements.
All investment advisors are fiduciaries by virtue of having
discretion T or F - . . ANSWER ✓✓ False
All of following are decisive factors to consider when analyzing
the number of asset classes to include in a portfolio EXCEPT:
Select one:
1. Portfolio size
2. Investment expertise of decision-makers
3. Ability of decision-makers to properly monitor investments
4. Existing Brokerage platform limitations - . . ANSWER ✓✓
Existing Brokerage platform limitations Correct
All of the following are benefits of a CEFEX assessment EXCEPT:
Select one:
1. It may help educate fiduciaries of their roles and
responsibilities
2. It helps to identify non-performers at the company
3. It provides a "checklist" approach, which imparts a discipline
and rigor to an investment decision-making process
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4. It leads to the recognition and correction of shortfalls to
current investment practices, which may reduce liability - . .
ANSWER ✓✓ It helps to identify non-performers at the company
A CEFEX assessment provides the process for examining and
evaluating a fiduciary's decision-making process. There are
many benefits to doing this, including: identification of shortfalls
(often times the easiest things to overlook) that, when corrected,
may reduce liability; trustee education may be improved; and it
certainly brings the investment committee together as they have
to discuss and address the findings. It is not designed as a fault-
finding exercise, because that would increase the likelihood that
already reluctant fiduciaries would never have it done.
All of the following are benefits of a Certification of Fiduciary
Excellence EXCEPT:
Select one:
1. Signifies endorsement by the International Organization of
Standardization
2. Provides independent verification of conformity to all Practices
and Criteria
3. Demonstrates effective management of fiduciary risks
4. Offers potential for national and worldwide recognition - . .
ANSWER ✓✓ Signifies endorsement by the International
Organization of Standardization
AIF Training Exam Questions & Answers, Well
Elaborated | Already Verified Test |100% Verified
solutions | 2025\2026 Latest!!
A due diligence philosophy for selecting investment options
should incorporate all of the following EXCEPT:
Select one:
1. The same process for mutual funds and separate account
managers
2. Screens that have dual application for search and monitoring
3. A simple process that can be replicated in the field
4. Special consideration for mutual funds or separate account
managers that have close ties to the federal government - . .
ANSWER ✓✓ Special consideration for mutual funds or separate
account managers that have close ties to the federal government
A due diligence philosophy for selecting investment options
should incorporate all of the following EXCEPT:
Select one:
1. Screens that have dual application for search and monitoring
2. Special consideration for mutual funds or separate account
managers that have strong marketing departments
3. A simple process that can be replicated in the field
,2|Page
4. The same process for mutual funds and separate account
managers - . . ANSWER ✓✓ search.
A fiduciary or co-fiduciary cannot be held responsible for a
breach of their fiduciary responsibility if they can demonstrate
they were not aware of a particular duty or requirement. T or F -
. . ANSWER ✓✓ F - Ignorance is not a viable defense.
A trustee might NOT be acting in a fiduciary capacity if that
trustee is a:
Select one:
1. Directed trustee
2. Court appointed trustee
3. Trustee of an institutional trust
4. Trustee of a personal Trust - . . ANSWER ✓✓ Directed trustee
All available safe harbors:
Select one:
1. Require legal approval
2. Are voluntary
3. Protect the fiduciary from liability
4. Were enacted prior to 2006 - . . ANSWER ✓✓ Are voluntary
,3|Page
All safe harbors are: 1) voluntary; 2) may insulate the fiduciary
from liability; and 3) require the fiduciary to demonstrate
compliance with defined requirements.
All investment advisors are fiduciaries by virtue of having
discretion T or F - . . ANSWER ✓✓ False
All of following are decisive factors to consider when analyzing
the number of asset classes to include in a portfolio EXCEPT:
Select one:
1. Portfolio size
2. Investment expertise of decision-makers
3. Ability of decision-makers to properly monitor investments
4. Existing Brokerage platform limitations - . . ANSWER ✓✓
Existing Brokerage platform limitations Correct
All of the following are benefits of a CEFEX assessment EXCEPT:
Select one:
1. It may help educate fiduciaries of their roles and
responsibilities
2. It helps to identify non-performers at the company
3. It provides a "checklist" approach, which imparts a discipline
and rigor to an investment decision-making process
, 4|Page
4. It leads to the recognition and correction of shortfalls to
current investment practices, which may reduce liability - . .
ANSWER ✓✓ It helps to identify non-performers at the company
A CEFEX assessment provides the process for examining and
evaluating a fiduciary's decision-making process. There are
many benefits to doing this, including: identification of shortfalls
(often times the easiest things to overlook) that, when corrected,
may reduce liability; trustee education may be improved; and it
certainly brings the investment committee together as they have
to discuss and address the findings. It is not designed as a fault-
finding exercise, because that would increase the likelihood that
already reluctant fiduciaries would never have it done.
All of the following are benefits of a Certification of Fiduciary
Excellence EXCEPT:
Select one:
1. Signifies endorsement by the International Organization of
Standardization
2. Provides independent verification of conformity to all Practices
and Criteria
3. Demonstrates effective management of fiduciary risks
4. Offers potential for national and worldwide recognition - . .
ANSWER ✓✓ Signifies endorsement by the International
Organization of Standardization
