What areas must change for the June 9th implementation of the fiduciary rule?

• a. Sales practices
• b. Compensation Restrictions
• c. Rollover practices
• d. Disclosures
• e. Written contracts
• f. a, b and c
• g. all of the above

Is an advisor permitted to take an order before determining what a Retirement Investor's best interests are?

• a. No, the order is a violation unless it is in the Retirement Investor’s best interest
• b. Yes, if the advisor made no recommendation and documents that fact, an unsolicited order does not have to meet the standard of being in the Retirement Investor's best interest

Can a Retirement Investor override or ignore a recommendation that has been determined to be in his/her best interest and request an alternative?

• a. Yes, the advisor should ask the Retirement Investor to reject the recommendation in writing before accepting the new order as unsolicited
• b. Yes, the advisor should change the recommendation to reflect the Retirement Investor’s preferences
• c. Yes, but the advisor cannot accept any compensation that is associated with the request
• d. Any of the above
• e. None of the above, the advisor must not accept an order he/she believes is not in the Retirement Investor’s best interest since this would be a breach of fiduciary duty

If compensation from the most desirable solution is found to be excessive, what option does the advisor have?

• a. Decline to make a recommendation
• b. Offer to reimburse client the excess
• c. Select a less appropriate solution where the compensation is not excessive
• d. Inform the Retirement Investor, specifying what the compensation is and the amount of the excess in writing and ask the Investor to agree to it in writing or the advisor can offer a less desirable solution
• e. Any of the above

How does a rollover recommendation differ from any other investment recommendation made to a Retirement Investor?

• a. The rollover recommendation may or may not include specific investment recommendations
• b. The factors that apply exclusively to rollovers involve the benefits and disadvantages of being part of an employer plan, including certain protections, economies of scale, employer imposed limitations, feature differences and access to investments
• c. Rollovers once made are generally not reversible back to an employer plan
• d. The opportunity exists for a virtually limitless array of investment choices, both good and bad
• e. a and d
• f. All of the above
• g. None of the above

What steps are necessary to make a rollover recommendation?

• a. Discovery of what is in the Retirement Investor’s best interest
• b. Finding a solution
• c. Assessing compensation
• d. Providing a recommendation
• e. All of the above
• f. None of the above

What is the leading cause of excessive compensation in existing accounts?

• a. Uniform pricing for all clients
• b. Compensation based on products (such as 12b-1) sales charges
• c. Compensation paid directly to the advisor/firm
• d. All of the above
• e. None of the above

What happens when pre-existing account relief is cancelled?

• a. Advisor notifies Retirement Investor that Federal Regulations require a review of the account(s) to ensure that investment choices are in his/her best interest
• b. Advisor performs discovery, finds solutions, checks compensation and makes recommendation as if it was a new client and Retirement Investor may accept or reject the recommendation
• c. All business with that Retirement Investor becomes subject to best interest requirements and misleading statement prohibition
• d. All of the above
• e. None of the above

Is advice that recommends no change a fiduciary act?

• a. For it to be a fiduciary act, there must be compensation so if the advice to make no change involves no compensation, it is not fiduciary
• b. If there is compensation involved, such as remaining in a plan from which compensation is received, such advice is fiduciary
• c. In either case, no change is not a recommendation and cannot be a fiduciary act
• d. a and b
• e. All of the above
• f. None of the above

Results!