CES Regulatory Framework & Compliance 2

Question 1

Under the Uniform Trust Code (UTC), which party has the authority to waive the trustee's duty to inform and report to beneficiaries?

Accepted Answer

The settlor in the trust instrument

Answer

The UTC permits the settlor to waive or modify the trustee's default duty to keep beneficiaries informed, subject to certain protections.

Question 2

Which federal law primarily governs the regulation of investment advisers who manage trust assets and have assets under management of $100 million or more?

Accepted Answer

Investment Advisers Act of 1940

Answer

The Investment Advisers Act of 1940 requires advisers with $100 million or more AUM to register with the SEC and comply with its fiduciary standards.

Question 3

A trustee fails to file a required Form 1041 for a trust. Which agency has primary enforcement authority over this non-filing?

Accepted Answer

IRS

Answer

The IRS has jurisdiction over trust income tax returns, including Form 1041, and can impose penalties for failure to file.

Question 4

Under ERISA, what is the maximum period after which a fiduciary breach claim can be brought if the claimant had actual knowledge of the breach?

Accepted Answer

3 years

Answer

ERISA §413 provides a 3-year statute of limitations for fiduciary breach claims when the plaintiff had actual knowledge of the breach.

Question 5

Which regulatory body oversees national bank trust departments that provide fiduciary services?

Accepted Answer

OCC

Answer

The Office of the Comptroller of the Currency (OCC) supervises national banks, including their trust and fiduciary activities under 12 CFR Part 9.

(CES) Certified Estate and Trust Specialist Practice Test

(CES) Certified Estate and Trust Specialist Practice Test

CES Regulatory Framework & Compliance 2