Lesson 10 Quiz Questions Flashcards
1
Q
Three Sections of the Standards of Professional Conduct
A
- Code of Ethics and Standards of Conduct
- Disciplinary Rules
- Candidate Fitness Standards
2
Q
CFP Code of Ethics Requirements
A
- Act with honesty, integrity, competence, and diligence
- Act in the client’s best interest
- Exercise due care
- Avoid or disclose and manage conflicts of interest
- Maintain the confidentiality and protect the privacy of client information
- Act in a manner that reflects positively on the financial planning profession and CFP certification
3
Q
CFP Standards of Conduct Sections
A
- Duties owed to clients
- Financial planning and application of the practice standard for the financial planning process
- Practice standards for the financial planning process
- Duties owed to firms and subordinates
- Duties owed to CFP board
- Prohibition on circumvention
4
Q
Definition of a Client
A
Any natural person, business organization, or legal entity to whom a CFP professional provides or agrees to provide professional services pursuant to an engagement
5
Q
Definition of Financial Advice
A
Communication that would reasonably be viewed as a recommendation to:
- Develop or implement a financial plan
- Invest in, purchase, hold, gift, or sell financial assets
- Implement investment policies or strategies, portfolio composition, the management of financial assets, or other financial matters
- Select and retain other persons to provide financial or professional services to the client
- Exercise discretionary authority over the financial assets of a client
6
Q
15 Duties to Clients
A
- Fiduciary Duty
- Integrity
- Competency
- Diligence
- Disclose and Manage Conflicts of Interest
- Sound and Objective Professional Judgment
- Professionalism
- Comply with the Law
- Confidentiality and Privacy
- Provide Information to the Client
- Client Communication
- Representing Compensation Method
- Recommending, Engaging, and Working with Additional Persons
- Selecting, Using, and Recommending Technology
- Refrain from Borrowing or Lending Money and Commingling Financial Assets
7
Q
Financial Advice Requirements
A
- Is a provision of services individually tailored to the Client
- Follows the furnishing or making available of marketing materials
- Is not general financial education materials or general financial communications that a reasonable CFP professional not view as Financial advice
8
Q
Duties Owned to Firms and Subordinates
A
- Use reasonable care when supervising
- Comply with lawful objectives of CFP Professional’s firm
- Provide notice of public discipline
9
Q
Permanent Bar Worthy Misconduct
A
- Felony conviction for theft, embezzlement, or other financially based crimes
- Felony conviction for tax fraud or other tax-related crimes
- Nonadministrative revocation of a financial professional license
- Felony conviction for any degree of murder or rape
- Felony conviction for any other violent crime within the last 5 years
