CFP Exam 2022| 665 QUESTIONS| WITH COMPLETE SOLUTION

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CFP Standards of Conduct Sections (6) Correct Answer: A. Duties owed to clients. B. Fin. Planning and Application of Practice Standards C. Practice Standards for Fin. Planning Process D. Duties ow... ed to firms/subordinates E. Duties owed to CFP Board F. Prohibition on Circumvention Section A of CFP Standards of Conduct Correct Answer: Duties owed to Client: 1. Fiduciary Duty 2. Integrity 3. Competence 4. Diligence 5. Disclose and Manage Conflicts of Interest 6. Sound and Objective Professional Judgment 7. Professionalism 8. Comply with the Law 9. Confidentiality and Privacy 10. Provide information to client 11. Duties when communicating with a client 12. Duties when representing compensation method 13. Duties when recommending/working with other persons 14. Duties when selecting/using Technology 15. Refrain from borrowing money/ commingling assets Section B of CFP Standards of Conduct Correct Answer: Definition and standard for compliance when practicing financial planning: Financial Planning is a collaborative process that helps maximize a Client's potential for meeting life goals through Financial Advice that integrates relevant elements of the Client's personal and financial circumstances. Must limit scope of engagement if only giving financial ADVICE, not financial PLANNING. Section C of CFP Standards of Conduct Correct Answer: Practice standards for the FP process (7): 1. Understand Client's Personal and Financial circumstances 2. Identify and Select Goals 3. Analyse Current Course of Action and Potential Alternatives 4. Develop FP Recommendations 5. Present FP Recommendations 6. Implement FP Recommendations 7. Monitor Progress and Update Section D of CFP Standards of Conduct Correct Answer: Duties owed to Firm/Subordinates (3): 1. Use Reasonable Care when Supervising 2. Comply with Lawful Objectives of the Firm 3. Provide Notice of Public Discipline to the Firm Section E of CFP Standards of Conduct Correct Answer: Duties owed to CFP Board: Cannot engage in conduct that reflects adversely on CFP marks or upon the profession. 5 types of conduct that violate CFP standard, 14 reportable events. - Must report to CFP board within 30 days - Provide Board with a narrative statement - Cooperate with Board and comply with Certification and TM license and terms Section F of CFP Standards of Conduct Correct Answer: Prohibition on Circumvention Cannot act indirectly or through another person to violate CFP Practice Standards Types of conduct that violate CFP practice standards (5) Correct Answer: 1. Felony or relevant misdemeanor 2. Fraud, theft, misrepresentation, other dishonesty 3. Bankruptcy 4. Federal tax lien 5. Other lien or civil judgment that has not been satisfied Chapter 7 Bankruptcy Exemptions (7) Correct Answer: 1. Primary homestead 2. Vehicle (limited) 3. Retirement savings/pension 4. Wages to provide for dependents 5. Limited personal property 6. Life insurance/a [Show More]

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