Asset Management Asset Compliance and Regulatory Standards

Question 1

Which US regulatory body oversees investment advisers managing client assets and enforces compliance with the Investment Advisers Act of 1940?

Accepted Answer

Securities and Exchange Commission (SEC)

Answer

The SEC regulates investment advisers with $110M or more in AUM under the Investment Advisers Act and enforces fiduciary compliance.

Question 2

The Dodd-Frank Wall Street Reform and Consumer Protection Act primarily addressed which asset management compliance area?

Accepted Answer

Systemic risk in financial institutions and derivatives markets

Answer

Dodd-Frank imposed systemic risk oversight, Volcker Rule restrictions, and derivatives reporting requirements on large financial institutions.

Question 3

Which US regulatory framework requires banks to hold minimum capital reserves proportional to their risk-weighted assets?

Accepted Answer

Basel III (implemented via US banking regulations)

Answer

Basel III capital requirements, implemented by US banking regulators, mandate minimum capital ratios to absorb losses on risk-weighted asset portfolios.

Question 4

GASB Statement 34 was significant for US government asset management because it required:

Accepted Answer

State and local governments to report infrastructure assets on financial statements

Answer

GASB 34 mandated that government entities include infrastructure assets like roads and bridges in their basic financial statements for the first time.

Question 5

Environmental asset compliance in the US is primarily governed by regulations from which agency?

Accepted Answer

EPA (Environmental Protection Agency)

Answer

The EPA enforces environmental laws like CERCLA and RCRA that impose obligations on companies for contaminated site remediation and hazardous waste asset management.

Asset Management Practice Test

Asset Management Practice Test

Asset Management Asset Compliance and Regulatory Standards