Ethics Flashcards
(16 cards)
Rules of conduct 1
Define relationship with prospective client
Mutually agree about services provided
Financial planning -6 steps of financial planning
Written agreement
Parties
Date and duration
Termination
Services provided
Rules of conduct 2
No false or misleading communication Disclosures Compensation Let know when move in writing Contact info Brochure rule
Rule of conduct 3
Protect client information Obtain information necessary to do job Custody Investment discretion Exercise supervision Cannot commingle funds except for defined benefit plan
Rule of conduct 4
Obligations to prospective client Treat fairly Only competent advice Fiduciary. Suitable and best Tell clients if cert revoked
Rule of conduct 5
Obligation to employer perform with dedication
Cffp board. Conviction or suspension in 10 days
Practice standards
Financial planning process
- Establish define relationship
- Gather client data
- Analyze evaluate info
- Develop and present fp recommendation
- Implement fp recommendation
- Monitor
Gather data
Quantatative approach to qualitative idea
Personal financial goals
Analyze and evaluate
Assets Liabilities Insurance Estate Cash flow Benefits at work Retirement
Develop and present
Recommend on info provided
Go over recommendations
Have to present in a way client understands and believes it
Client understands they have alternatives
Implementing financial planning advice
If the plan is not implemented it is not financial planning
You must make sure it is implemented
Coach
Monitor financial planning recommendations
Report periodically review life changes
What is financial planning
Clients understanding and intent if client does not think it is
Degree to which multiple areas are involved
How comprehensive has data been
What is not financial planning
Opening acct
Kyc
Brokerage or insurance or mtg brkr or tax preparer or teacher
Grounds for discipline
Any act or omission
Failing to comply with practice standards
No criminal laws
No suspensions
Board disciplinary rules. Failure to respond.
Lie
Disciplinary process
Grivance or Notice of investigation. 30 days Issue complaint hearing. 20 days. 750.00 Attorney witness ident 45 days Decision 30 days Appeal 30 days
