A.2 CFP Board’s Procedural Rules Flashcards
Learners will be able to identify and explain terms and phrases associated with procedural rules established by the CFP Board, including their application and implications for Certified Financial Planning CFP® professionals.
The ethical standards required for CFP professionals.
Think about the moral principles guiding financial planners.
CFP Board’s Code of Ethics
Obligation to place the client’s interests above the interests of the professional or their firm.
Whose interests come first?
Duty of Loyalty
The requirement to provide services using the prudence that a reasonable professional would.
How should professionals handle their expertise?
Duty of Care
Rules that govern the process of professional conduct hearings.
What rules outline how conduct hearings are carried out?
Procedural Rules
Actions taken against a CFP professional that are made public due to violations.
What happens publicly when rules are broken?
Public Sanctions
Temporary suspension of a CFP certification during an ongoing investigation.
What is the temporary status during an investigation?
Interim Suspension
The steps followed by the CFP Board when a complaint against a certified professional is filed.
How does the CFP Board begin to handle complaints?
Investigation Process
The method by which a CFP professional can contest a disciplinary decision.
How can decisions be contested?
Appeal Process
Rules governing the privacy of client information and proceedings.
What rules protect client information?
Confidentiality Requirements
The obligation to act in the best interest of the client with trust and confidence.
What is the highest standard of care in financial planning?
Fiduciary Duty
The requirement not to discriminate against clients on any basis.
What is forbidden in client treatment?
Non-Discrimination
The obligation to inform clients about certain information, including conflicts of interest.
What must professionals disclose to clients?
Duty to Disclose
Guidelines that govern how CFP professionals can promote their services.
How can professionals market their services?
Advertising Rules
Documentation that outlines the services to be provided, fees, and other important terms between a CFP professional and a client.
What documents outline the professional relationship?
Client Agreements
Conditions under which a CFP professional’s certification can be revoked.
What can end a professional’s certification?
Termination of CFP Certification
