RMA Regulatory Compliance & Legal Framework 3

Question 1

The SEC's Regulation Best Interest (Reg BI) requires broker-dealers to act in the client's best interest at the time of which event?

Accepted Answer

Making a recommendation

Answer

Reg BI imposes the best-interest obligation specifically at the moment a recommendation is made to a retail customer.

Question 2

Which ERISA vesting schedule allows a participant to be 100% vested after three years of service?

Accepted Answer

Cliff vesting

Answer

Under cliff vesting, participants become fully vested all at once, which ERISA allows after no more than three years for employer contributions.

Question 3

A plan administrator fails to provide a Summary Plan Description within 90 days of a participant's eligibility. Which agency enforces this requirement?

Accepted Answer

DOL Employee Benefits Security Administration

Answer

The DOL's Employee Benefits Security Administration (EBSA) enforces ERISA's disclosure requirements, including timely SPD delivery.

Question 4

Under HIPAA, which retirement plan provision restricts the use of health information for plan enrollment eligibility?

Accepted Answer

HIPAA nondiscrimination rules for group health plans

Answer

HIPAA's nondiscrimination rules prohibit group health plans from denying enrollment or charging higher premiums based on health status.

Question 5

The annual additions limit under IRC Section 415(c) for defined contribution plans in 2024 is:

Accepted Answer

$69,000

Answer

The Section 415(c) annual additions limit for defined contribution plans is $69,000 for 2024, covering all employer and employee contributions.

RMA Practice Test

RMA Practice Test

RMA Regulatory Compliance & Legal Framework 3