AIF ACCREDITED INVESTMENT FIDUCIARY

AIF ACCREDITED INVESTMENT FIDUCIARY

EXAM LATEST WITH ACTUAL QUESTIONS

AND VERIFIED CORRECT ANSWERS GRADED

A+

◉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.

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◉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 2 / 3

◉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

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