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Flashcards in Module 3 (Ethics) Deck (29):
1

The number one influence on an executives ethical decision making is their...

personal code of behavior.

2

Ethics represents the underlining aspect of trust between an advisor and...

Client.

3

What holds businesses, the economy, and society together?

Ethics

4

What can drastically improve the quality of life at work?

Affix

5

Laws are written based on what a government considers ___________________ of conduct.

minimum standards

6

In order to be ethical an individual must follow the...

Law.

7

True or false. Legal problems are relatively clear cut and are more easily defined then ethical problems.

True

8

Laws can be written to address certain aspects of __________, such as stealing.

Morality

9

What are used as benchmarks to measure the conduct of an advisor?

Ethical codes

10

Holder of an American College designation is subject to the...

professional pledge and 8 cannons.

11

The American College professional pledge requires the holder of the designation to render services to others which, under the same circumstances, the holder would apply to

themselves.

12

If you violate the American College pledge what are the consequences?

Temporary or permanent suspension😱

13

What are the eight canons of the American college code of ethics?

1. Have honor and dignity
2. Don't dishonor the American College
3. Publicize achievements
4. Continuing education
5. Keep a record of service
6. Support professional institutions (like school)
7. Encourage and help other professionals
8. Obey the law and regulations

14

When considering the American college code of ethics what is one code that is not part of the eight canyons?

Enhance your reputation in the community.

15

If you violate the CFP Board's Professional Standards code of ethics, what could be the consequence?

You can lose your certification, but you won't get fired.

16

Someone violates the CFP Board's code of ethics can you take them to court and sue them?

No.

17

Who does the CFP Board's code of ethics apply to?

Current CFP professionals and candidates for the certification

18

"I can obtain CFP designation." What are the 7 principles of the code of ethics?

Integrity – honesty
Competence – adequate level of knowledge
Objectivity
Confidentiality
Fairness – Fair compensation in disclose any potential conflicts of interest
Professionalism
Diligence – providing services timely

19

Rules of Conduct establish the standards expected of...

CFP professionals.

20

For CFP professionals, what are the six rules under the Rules of Conduct?

1. Build a relationship
2. You have obligations to the client, employers, and CFP Board
3. Continue education
4. Never borrow money (unless it's a family member)
5. No commingling property with the clients property without a written agreement
6. Disclose any suspensions of certifications to clients

21

CFP Board has Practice Standards that are organize based upon financial planning domain in our intended to do what three things?

- Establish norms
- Improve your professionalism
- Enhance the value of the financial planning process

22

Does the CFP Board's Practice Standards have a step-by-step procedure for providing services?

No

23

Name the six parts of the Practice Standards created by the CFP Board.

100-1: defining the scope of engagement
200–1: determine clients financial goals, needs, and priorities
200–2: get quantitative info
300–1: analyze clients information
400–1: come up with financial alternatives
400–2: put together the recommend financial plan
400–3: Present recommendations
500–1: agreed on the plan
500–2: select the products to be implemented
600-1: monitor the plan

24

Advisors should be encouraging the clients to purchase products, they should not...

pressure the clients into buying products.

25

What is a major component of the financial planning process?

client-focused selling

26

The former Vice President of the Society of Financial Service Professionals, suggest that someone who is considered a professional should have 4 characteristics. What are they?

– obey the code of ethics
– meet the threshold entry requirements
– have specialized knowledge and minimum education requirements
– be altruistic or unselfish

27

Historically, courts held professionals to a higher standard than...

non-professionals.

28

Hallmarks of professional behavior places a standard and expect professionals to...

– Put the clients interest above anything else
– Know the law

29

What are the eight hallmarks of professional behavior for a financial advisor?

1. Consistent service
2. Listening to the client
3. Answer client questions
4. Educate the client on the financial products and services
5. No the clients risk tolerance
6. Handle money matters appropriately
7. Tell the client your educational background so they know how smart you are or how dumb you are
8. Refer to experts when necessary