Name: Score:
92 Multiple choice questions
Term 1 of 92
Risk Using Standard Deviation
One standard deviation 68% of outcome
Two standard deviation 95% of outcome
ESG or SRI investments-when directed by valid governing documents
Reg Fees are management fees, 12b-1 fees and other expenses
Non reported are commissions and implicit trading costs
When the advisor loses confidence in managers ability to perform in the future
Definition 2 of 92
Investment options provide reasonable range of participant time horizons
Best Execution Policies:
Portfolio Monitoring
Flexible Benefits Plans
Defined Contribution Retirement Plans
Definition 3 of 92
Amount of risk that can be endured during periods of volatility
Residual Risk
Tolerable Risk
Portfolio Monitoring
Policy Portfolio
,Definition 4 of 92
legal and at times appropriate
Must be in client best interest
Generating Soft Dollars to pay for services
Using Hard Dollars to pay for services
Soft dollars
Bartering services for goods
Definition 5 of 92
Disclosures, Marketing Stuff, Client Agreements, IPS, Minutes, Trust Docs, Brokerage agreement,
performance, prospectus and material client communications
Advisor Service Agreement
Fi360 Prudent Practices Handbook
Fiduciary File
Trust Documents
Definition 6 of 92
Must be necessary
must of reasonable
Paid from portfolio or plan assets
Evaluate Conflicts
Monitoring Criteria
Addressing fees:
408b2 disclosures
,Term 7 of 92
Qualified Default Investment Alternative (QDIA) defined as:
Acknowledge fiduciary status in writing
Avoid conflicts of interest
Disclose all compensation
Data and analysis services
Investment publications
Professional Journals
Online Services
Contract Reviews
Fiduciary Reviews
Applies to public employee retirement systems
NASRA National Association of State Retirement Administrators
Age based funds
Risk based funds
Managed accounts
Money market type allowable for up to 120 days
, Term 8 of 92
Directed Brokerage:
Seek legal counsel and guidance
Side with transparency and informed consent
Identify
Evaluate
Materiality
Avoid
Disclose
Informed Consent
Potential negative impacts
Insufficient benefit to justify added cost
Money Managers
Execution Brokerage
Record keeper
Advisor Broker
Custodian
Definition 9 of 92
Evaluate and Decide
Duty to Act on Adverse Info:
Standards of Conduct & Code of Ethics-Pyramid
UPIA: Uniform Prudent Investor Act
Investment Policy Statement specifies
92 Multiple choice questions
Term 1 of 92
Risk Using Standard Deviation
One standard deviation 68% of outcome
Two standard deviation 95% of outcome
ESG or SRI investments-when directed by valid governing documents
Reg Fees are management fees, 12b-1 fees and other expenses
Non reported are commissions and implicit trading costs
When the advisor loses confidence in managers ability to perform in the future
Definition 2 of 92
Investment options provide reasonable range of participant time horizons
Best Execution Policies:
Portfolio Monitoring
Flexible Benefits Plans
Defined Contribution Retirement Plans
Definition 3 of 92
Amount of risk that can be endured during periods of volatility
Residual Risk
Tolerable Risk
Portfolio Monitoring
Policy Portfolio
,Definition 4 of 92
legal and at times appropriate
Must be in client best interest
Generating Soft Dollars to pay for services
Using Hard Dollars to pay for services
Soft dollars
Bartering services for goods
Definition 5 of 92
Disclosures, Marketing Stuff, Client Agreements, IPS, Minutes, Trust Docs, Brokerage agreement,
performance, prospectus and material client communications
Advisor Service Agreement
Fi360 Prudent Practices Handbook
Fiduciary File
Trust Documents
Definition 6 of 92
Must be necessary
must of reasonable
Paid from portfolio or plan assets
Evaluate Conflicts
Monitoring Criteria
Addressing fees:
408b2 disclosures
,Term 7 of 92
Qualified Default Investment Alternative (QDIA) defined as:
Acknowledge fiduciary status in writing
Avoid conflicts of interest
Disclose all compensation
Data and analysis services
Investment publications
Professional Journals
Online Services
Contract Reviews
Fiduciary Reviews
Applies to public employee retirement systems
NASRA National Association of State Retirement Administrators
Age based funds
Risk based funds
Managed accounts
Money market type allowable for up to 120 days
, Term 8 of 92
Directed Brokerage:
Seek legal counsel and guidance
Side with transparency and informed consent
Identify
Evaluate
Materiality
Avoid
Disclose
Informed Consent
Potential negative impacts
Insufficient benefit to justify added cost
Money Managers
Execution Brokerage
Record keeper
Advisor Broker
Custodian
Definition 9 of 92
Evaluate and Decide
Duty to Act on Adverse Info:
Standards of Conduct & Code of Ethics-Pyramid
UPIA: Uniform Prudent Investor Act
Investment Policy Statement specifies
