Investment fiduciary - Study guides, Class notes & Summaries

CTFA - Practice Exam #1 Questions and Answers 100% Pass "Constructive Receipt" is normally applicable to the tax treatment of... Non-Qualified Deferred Compensation Plans Non-Qualified Deferred Compensation TCHRA: Compensation that is not immediately taxable. It does not qualify under ERISA for tax exemption. Taxation occurs once the individual receives the compensation or "property" A 1035 exchange refers to a tax free exchange of... Annuities 1035 Exchange IRS allows tax-...

IFC Practice Test 1 UPDATED ACTUAL Questions and CORRECT Answers What is the purpose of fund facts? A. To provide clients with key fund information that is relevant to their investment decisions. B. To better align the interests of the fund with the client. C. To determine if a fiduciary duty is present in the representative-client relationship. D. To clarify for clients the nature and terms of their relationship with the dealer of the fund. - CORRECT ANSWER- A

IACCP Master Questions Bank | 170 Questions and 100%Correct Answers Latest Update 2024. The SMC Capital, Inc. No-Action Letter (September 5, 1995) states that trade allocations may occur: A. Only on a rotational basis B. On a pro rata basis but other allocation methods can be used without violating the Advisers Act C. Only on a pro rata basis D. Based on the trader's good faith discretion Correct Answer: B. On a pro rata basis but other allocation methods can be used without violating t...

Investment advisor act of 1940 correct answers Is the federal legislation that defines the term investment advisor and requires persons that fall within the definition to register with the SEC or with the states in which they do business. 2 primary purposes: regulation of persons both natural and legal in the business of giving investment advice -the establishment of standars of ethical business conduct for the industry National Securities Markets Improvement Act of 1993 (NSMIA) correct ans...

ERISA Prudent Man Rule - Requires plan fiduciaries to hire knowledgeable professionals for plan duties. Fiduciary Duty - Obligation to act in the best interest of plan participants and beneficiaries. Plan Sponsor - Employer responsible for selecting and monitoring plan service providers. Exclusive Benefit Rule - Requires fiduciaries to act solely for the benefit of participants and beneficiaries. Plan Service Providers - Entities engaged to perform functions beyond the sponsor's exp...

IACCP Master Questions Bank | 170 Questions and 100%Correct Answers Latest Update 2024. The SMC Capital, Inc. No-Action Letter (September 5, 1995) states that trade allocations may occur: A. Only on a rotational basis B. On a pro rata basis but other allocation methods can be used without violating the Advisers Act C. Only on a pro rata basis D. Based on the trader's good faith discretion Correct Answer: B. On a pro rata basis but other allocation methods can be used without violating t...

Investment Policy Statement A plan sponsor is not required by law to have a written investment policy statement (IPS) for its plan. However, the Employee Retirement Income Security Act of 1974 (ERISA) is clear that plans must "provide a procedure for establishing and carrying out a funding policy in a method consistent with the objectives of the plan The IPS is typically one of the first documents requested in a DOL investigation for potential fiduciary misconduct effective IP...

What type of risk is unique to a specific industry, business enterprise, or investment type? - ANSWER-Nonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? - ANSWER-Buy a call, sell a call (The holder of a call has the right to buy stock at the strike price if exercised. The seller of a put is obligated to buy stock at the strike price if exercised) Options- a premium - ANSWER-the cost of an option contract, expressed in dollars per sh...

Cases that don't constitute license law violations are correct answers dismissed on intake. Investigative dismissals are correct answers cases that went to investigation and were subsequently dismissed. Title 12 of the Colorado Revised Statutes gives correct answers the Colorado Division of Real Estate jurisdiction over real estate licensees and entities in the state, which includes the requirement to investigate complaints. One of the top licensee violations is correct answers failing...

Under the DOL regulation, many advisors to retirement plans and their participants will be -:- 3(21) fiduciaries. They will act alongside other fiduciary service providers who are also not necessarily named in the plan document but who exercise discretionary control over plan provisions or plan investments. The advisor should educate the -:- plan sponsor about hiring fiduciary service providers, including the different roles service providers, including the different roles service pro...