STEP Study Guide 2026
Everything you need to pass the STEP exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 STEP Exam Format at a Glance
📚 STEP Topics to Study (15)
✍️ Sample STEP Questions & Answers
1. What is the fundamental duty of a fiduciary?
The fundamental duty of a fiduciary is to prioritize the interests of the beneficiary above all else, including their own. This means acting with utmost loyalty, good faith, and prudence in managing assets or making decisions on the beneficiary's behalf. Fiduciaries are held to a high legal and ethical standard to ensure the beneficiary's well-being and objectives are always paramount.
2. What is residual risk?
Residual risk is what remains after mitigation measures are applied, and it must be accepted, further reduced, or transferred based on organizational risk tolerance.
3. What is the primary planning advantage of a Donor-Advised Fund (DAF) compared to making direct charitable gifts each year?
A DAF allows a donor to make an irrevocable, deductible contribution in a high-income year and then advise the sponsoring organization on grants to charities over future years.
4. What role does cash flow management play in financial health?
Cash flow management ensures adequate liquidity to meet obligations, fund operations, and invest in growth, regardless of reported profitability.
5. What is the consequence of practicing outside the defined scope of practice?
Practicing outside scope carries serious consequences including license revocation, legal liability, and potentially endangering the public, regardless of the outcome.
6. How should competitive intelligence be gathered ethically?
Ethical competitive intelligence relies on publicly available information, industry events, and legitimate market research, maintaining professional integrity.