CFP FUNDAMENTALS REVIEW SET QUESTIONS
AND ANSWERS 100% CORRECT!!
,What are the CFP Duties Owed To Clients - ANSWER Fiduciary Duty
Integrity
Competence
Disclose and Manage Conflicts of Interest
Sound and Objective Professional Judgement
Professionalism
Comply with the Law
Confidentiality and Privacy
Provide Information to a client
Duties when communicating with a client
Duties when Recommending, Engaging, and Working with additional persons
Duties when selecting, Using, and recommending Technology
Refrain from borrowing or lending money, and commingling financial assets
Duty Of Loyalty, A CFP Professional Must: - ANSWER -Place the interest of the client
above the interest of the CFP professional and the CFP professional's firm
-Avoid Conflicts of interests
-Act without regard to the financial or other interest of the CFP professonal
Duty of Care, a CFP Professional must - ANSWER Act with the care, skill prudence and
diligence that a prudent professional would exercise in light of the client's goals, risk
tolerance, objectives, and financial and personal circumstances
Duty to follow client instruction, a CFP professional must, - ANSWER Comply with all
objectives, policies, restrictions, and other terms of the engagement and all reasonable
and lawful directions of the client
Duties Owed to Client; Integrity - ANSWER Demands honesty and candor, which may
not be subordinated to personal gain or advantage
Cannot:
-Employ and device, scheme, or artifice to defraud;
-Make any untrue statement of material fact or omit to state a material fact necessary in
order to make the statements made
-Engage in any act, practice or course of business which operates or would operate as
a fraud or deceit upon any person
Duties Owed to Clients; Competence - ANSWER The CFP professional must provide
services with relevant knowledge and skill to apply that knowledge. When not
, sufficiently competent in a particular area, the CFP professional must gain competence,
obtain the assistance of a competent professional, limit or terminate the engagement
Duties Owed to Clients; Professionalism - ANSWER Must treat clients, prospective
clients, fellow professionals, and others with dignity, courtesy, and respect
Duties Owed to Clients; Comply with the Law - ANSWER Must comply with the laws,
rules, and regulations governing professional services
A CFP professional may not intentionally or recklessly participate or assist in another
person's violation of these standards or the laws, rules, or regulations governing
professional services
Duties Owed to Clients; Confidentiality and Privacy - ANSWER Must keep confidential
and may not disclose any nonpublic personal information about any prospective,
current, or former client,
When can a CFP professional disclose personal information for ordinary business
purposes? - ANSWER With the client's consent, so long as the client has not withdrawn
the consent
To the professional's firm or team
As necessary to provide information to the CFP professional's attorneys, accountants,
and auditors; and
To a person acting in a representative capacity on behalf of the client
When can a CFP professional disclose personal information for legal and enforcement
purposes? - ANSWER - To law enforcement authorities concerning suspected unlawful
activities, to the extent permitted by the law
-As required to comply with federal, state, and local law
-As necessary to defend against allegations of wrongdoing made by a governmental
authority
Duties Owed to Clients; Provide Information to a Client Requirements - ANSWER Must
provide the client:
-A description of the services and products to be provided
-How the client pays for the products and services, and a description of the additional
types of costs that the client may incur
-How the CFP Professional and their firm is compensated for providing their products
and services
-Any disciplinary actions against firm or CFP professional
AND ANSWERS 100% CORRECT!!
,What are the CFP Duties Owed To Clients - ANSWER Fiduciary Duty
Integrity
Competence
Disclose and Manage Conflicts of Interest
Sound and Objective Professional Judgement
Professionalism
Comply with the Law
Confidentiality and Privacy
Provide Information to a client
Duties when communicating with a client
Duties when Recommending, Engaging, and Working with additional persons
Duties when selecting, Using, and recommending Technology
Refrain from borrowing or lending money, and commingling financial assets
Duty Of Loyalty, A CFP Professional Must: - ANSWER -Place the interest of the client
above the interest of the CFP professional and the CFP professional's firm
-Avoid Conflicts of interests
-Act without regard to the financial or other interest of the CFP professonal
Duty of Care, a CFP Professional must - ANSWER Act with the care, skill prudence and
diligence that a prudent professional would exercise in light of the client's goals, risk
tolerance, objectives, and financial and personal circumstances
Duty to follow client instruction, a CFP professional must, - ANSWER Comply with all
objectives, policies, restrictions, and other terms of the engagement and all reasonable
and lawful directions of the client
Duties Owed to Client; Integrity - ANSWER Demands honesty and candor, which may
not be subordinated to personal gain or advantage
Cannot:
-Employ and device, scheme, or artifice to defraud;
-Make any untrue statement of material fact or omit to state a material fact necessary in
order to make the statements made
-Engage in any act, practice or course of business which operates or would operate as
a fraud or deceit upon any person
Duties Owed to Clients; Competence - ANSWER The CFP professional must provide
services with relevant knowledge and skill to apply that knowledge. When not
, sufficiently competent in a particular area, the CFP professional must gain competence,
obtain the assistance of a competent professional, limit or terminate the engagement
Duties Owed to Clients; Professionalism - ANSWER Must treat clients, prospective
clients, fellow professionals, and others with dignity, courtesy, and respect
Duties Owed to Clients; Comply with the Law - ANSWER Must comply with the laws,
rules, and regulations governing professional services
A CFP professional may not intentionally or recklessly participate or assist in another
person's violation of these standards or the laws, rules, or regulations governing
professional services
Duties Owed to Clients; Confidentiality and Privacy - ANSWER Must keep confidential
and may not disclose any nonpublic personal information about any prospective,
current, or former client,
When can a CFP professional disclose personal information for ordinary business
purposes? - ANSWER With the client's consent, so long as the client has not withdrawn
the consent
To the professional's firm or team
As necessary to provide information to the CFP professional's attorneys, accountants,
and auditors; and
To a person acting in a representative capacity on behalf of the client
When can a CFP professional disclose personal information for legal and enforcement
purposes? - ANSWER - To law enforcement authorities concerning suspected unlawful
activities, to the extent permitted by the law
-As required to comply with federal, state, and local law
-As necessary to defend against allegations of wrongdoing made by a governmental
authority
Duties Owed to Clients; Provide Information to a Client Requirements - ANSWER Must
provide the client:
-A description of the services and products to be provided
-How the client pays for the products and services, and a description of the additional
types of costs that the client may incur
-How the CFP Professional and their firm is compensated for providing their products
and services
-Any disciplinary actions against firm or CFP professional
