Practice Test Geeks(CES) Certified Estate and Trust Specialist Practice Test
← All CES Flashcard Decks

Regulatory Framework & Compliance Flashcards

7 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Framework & Compliance flashcards as text

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

    Answer: The settlor in the trust instrument

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

  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?

    Answer: Investment Advisers Act of 1940

    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.

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

    Answer: IRS

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

  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?

    Answer: 3 years

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

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

    Answer: OCC

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

  6. A corporate trustee suspects a trust account is being used for money laundering. Under the Bank Secrecy Act, what is the required action?

    Answer: File a Suspicious Activity Report (SAR) with FinCEN

    The Bank Secrecy Act requires financial institutions, including trust companies, to file a SAR with FinCEN when they suspect money laundering or other financial crimes.

  7. Under the Uniform Prudent Investor Act, a trustee's investment decisions are evaluated based on:

    Answer: The entire portfolio in context of the overall investment strategy

    The UPIA adopts modern portfolio theory, evaluating investment performance based on the overall portfolio rather than individual investment decisions in isolation.