General Principles

Question 1

Reportable matter

Answer 1

30 days

Question 2

Appeal

Answer 2

Within 30 days after notice of ruling

After 30 day widow it is final

Question 3

When should you notify cfp in writing

Answer 3

Any conviction of a crime, except misdemeanor traffic offenses or traffic ordinance violations (unless it includes alcohol or drugs or profesional suspension

Notify within 30 days

Question 4

Suspensions by CFP Board

Answer 4

Automatically published

Question 5

Who is responsible for investigation and appropriate action following rules violation

Answer 5

CFP Board Disciplinary and Ethics Commission (DEC)

Question 6

DEC can impose what

Answer 6

Private diplomacy actions - may require additional CE and/or private censure

Public Disciplinary - public letter of admonition, suspension for up to 5 years, or permanent revocation of the marks

Suspensions are automatically published

Question 7

Who must you notify following suspension of marks

Answer 7

Clients and his employer

Question 8

Selling proprietary products is not against CFP board standards if

Answer 8

It is disclosed along with the associated compensation arrangement

Question 9

Fiduciary Standard

Answer 9

Duty of

Loyalty
Care
Following client instructions
Diligence
Disclose and Manage conflicts of interest
Sound and Objective Professional Judgment
Professionalism
Comply with the Law
Confidentiality and Privacy
Provide Information to a client
Fairly Represent the Method of Compensation

Question 10

Amort

Answer 10

Solve for payment
1 input (PMT made)
Gold Amort
=

Question 11

Who controls monetary policy

Answer 11

FOMC
Federal Open Market Committee

Question 12

Prime Rate

Answer 12

Set by the commercial banks to their most worth customers

Question 13

Solving for NPV

Answer 13

Use typical CFP
Place rate into I/YR
Gold NPV

NPV=0 means the IR is same as the required rate of return

Question 14

What elements of the CFP boards code of ethics dovetail with steps of financial planning process

Answer 14

The practice standards

Question 15

Nouns used after marks

Answer 15

Certifican
Practitioner
Professional
Certification
Mark
Exam

Question 16

What is simpler

Government money market or T-Bill

Answer 16

Government money market

Question 17

Angie dies that oversee banks

Answer 17

FDIC
FEDERAL RESERVE
COMPTROLLER OF CURRENCY

Question 19

Ownership categories FDIC

Answer 19

Individual account
Joint account
Revocable trust
IRA and Keogh

Question 20

Money market accounts that are insured

Answer 20

Insured

Checking accounts
Savings accounts
MM deposit accounts
CDs

Not insured

Stocks
Bonds
MM mutual funds
Us treasury bills, bonds, or notes

Question 21

How are Broker dealers regulated

Answer 21

FINRA

Question 22

Property settlements

Answer 22

Tax free exchange

Question 23

Structured Settlements

Answer 23

Receive stream of income tax free payments

Question 24

Compensatory damages

Answer 24

1 Physical injury
Tax free
Interest is taxable

(100% tax free in single premium annuity)

2 discrimination / non-physical injury
Taxable
Medical expenses for emotional distress is tax free

Question 25

Punitive Damages

Answer 25

Taxable except for wrongful death

Question 26

Lotto winnings

Answer 26

Lump sum or annuity - includes full value of the award in gross income Cash or annuity (60 day window) - chooses annuity payout over 10 years payout received are taxable

Question 27

Monetary Policy

Answer 27

Reserve requirement - amount banks can lend out Discount Rate - rate FED charges other banks Open market operations -repurchasing / reverse repo gov securities Margin Rate - REG T rates

Question 28

Leading Indicators

Answer 28

Initial claims for unemployment insurance New manufacturing orders New private housing units Stock prices S&P Index of consumer expectations Avg weekly hours for production workers in manufacturing Contracts and orders for plants ad equipment

Question 29

incident Indicators

Answer 29

Industrial Production Number of employees on non-agricultural payrolls Personal income less transfer payments

Question 30

Lagging

Answer 30

Average duration of unemployment Avg prime rate charged by banks Commercial and industrial loans outstanding CPI for inflation

Question 31

GDP

Answer 31

= consumption + Investment + Gov Spending + Net Exports

Question 32

Pro forma

Answer 32

Illustrates what future financial statements are expected to show

Question 33

What agency should advisors notify first

Answer 33

SEC - must file first here

Question 34

an investment advisor registration with the SEC

Answer 34

Files ADV From $150 Must file an updated ADV Part 1 and Schedule 1 each year to the SEC

Question 35

If you receive omissions you must register with

Answer 35

FINRA

Question 36

Expressed Authority

Answer 36

Written explicit direction from principle to agent

Question 37

Implied authority

Answer 37

Walk into State Farm its implied you are talking to an agent

Question 38

Apparent Authority

Answer 38

Someone has power to accept contracts for 85 year old people when the rule says 80

Question 39

FINRA Arbritration

Answer 39

Between customers and Broker Dealers and vice versa

Question 40

Credit card liability

Answer 40

$50 per card

Question 41

Agent to principle obligation

Answer 41

Loyalty