CFP EXAM 2026/2027 UPDATE | VERIFIED QUESTIONS & ANSWERS
100% CORRECT | GRADED A+
Code of Ethics - ANSWER 1. Act with honesty, integrity, competence and diligence
2. Act in the client's best interests
3. Exercise due care
4. Avoid or disclose and manage conflicts of interest
5. Maintain the confidentiality and protect the privacy of client information
6. Act in a manner that reflect positively on the financial planning profession and CFP certification
Standards of Conduct - ANSWER DUTIES owed to clients
Fiduciary Duty - ANSWER -Duty of Loyalty (to the client)
-Duty of Care (in regards to Client's goals/circumstances/etc.)
-Duty to Follow CLIENT Instructions
Integrity - ANSWER -Honesty and candor (personal gain/advantage cannot cause CFP professional to
lose direction)
-Cannot misdirect/deceit/scheme/omit
Competence - ANSWER -Provide professional services with relevant knowledge and skills to apply
that knowledge.
Diligence - ANSWER -Provide professional services in a timely and thorough manner
Disclose and Manage Conflicts of Interest - ANSWER -AWLAYS disclose conflicts (Oral disclosure
required, written evidence not required)
-Professional must adopt and follow business practices reasonably designed to prevent conflicts from
compromising Client's best interest
Sound and Professional Judgement - ANSWER -Judgement based on Client's needs/circumstances,
not professional's
, -CFP cannot accept/solicit any gift, gratitude, entertainment, non-cash compensation that could
compromise professional objectivity
Professionalism - ANSWER -Must treat Clients, prospects, fellow professionals, and others with
dignity, courtesy, and respect.
Comply with the Law - ANSWER -Must comply with laws/rules/regulations governing Professional
Services
-Professional cannot intentionally/recklessly participate in another person's violation
Confidentiality and Privacy: Ordinary Business - ANSWER -Can disclose with client's consent
-Can disclose to Professional's firm, or other persons whom professional provides services with
(WHEN NECESSARY)
-To a person acting in a representative capacity on behalf of the client
Confidentiality and Privacy: Legal and Enforcement - ANSWER -to law enforcement authorities
concerning unlawful activities (permitted by law)
-as required to comply with federal/state/local law
-as necessary to defend against allegations of wrongdoing made by government
-To present or defend against a civil claim from the client
-as necessary to provide information to organization that are assessing CFP (compliance/standards)
Provide Information to a Client: Financial Advice - ANSWER Must Provide:
-description of the services and products to be provided
-how the client pays, and fee information
-How the professional is compensated for providing products and services
-the disclosure of any public discipline/bankruptcy/and where to find related information
-any and all material information that could affect a client's decision to engage a CFP
Provide Information to a Client: Financial Planning - ANSWER -the terms of the engagement between
client and CFP/ CFP's Firm
-scope of the engagement, limitations, periods in which service is provided, and client responsibility
-CFP is responsible for implementing, monitoring, and updated the Financial Plan
100% CORRECT | GRADED A+
Code of Ethics - ANSWER 1. Act with honesty, integrity, competence and diligence
2. Act in the client's best interests
3. Exercise due care
4. Avoid or disclose and manage conflicts of interest
5. Maintain the confidentiality and protect the privacy of client information
6. Act in a manner that reflect positively on the financial planning profession and CFP certification
Standards of Conduct - ANSWER DUTIES owed to clients
Fiduciary Duty - ANSWER -Duty of Loyalty (to the client)
-Duty of Care (in regards to Client's goals/circumstances/etc.)
-Duty to Follow CLIENT Instructions
Integrity - ANSWER -Honesty and candor (personal gain/advantage cannot cause CFP professional to
lose direction)
-Cannot misdirect/deceit/scheme/omit
Competence - ANSWER -Provide professional services with relevant knowledge and skills to apply
that knowledge.
Diligence - ANSWER -Provide professional services in a timely and thorough manner
Disclose and Manage Conflicts of Interest - ANSWER -AWLAYS disclose conflicts (Oral disclosure
required, written evidence not required)
-Professional must adopt and follow business practices reasonably designed to prevent conflicts from
compromising Client's best interest
Sound and Professional Judgement - ANSWER -Judgement based on Client's needs/circumstances,
not professional's
, -CFP cannot accept/solicit any gift, gratitude, entertainment, non-cash compensation that could
compromise professional objectivity
Professionalism - ANSWER -Must treat Clients, prospects, fellow professionals, and others with
dignity, courtesy, and respect.
Comply with the Law - ANSWER -Must comply with laws/rules/regulations governing Professional
Services
-Professional cannot intentionally/recklessly participate in another person's violation
Confidentiality and Privacy: Ordinary Business - ANSWER -Can disclose with client's consent
-Can disclose to Professional's firm, or other persons whom professional provides services with
(WHEN NECESSARY)
-To a person acting in a representative capacity on behalf of the client
Confidentiality and Privacy: Legal and Enforcement - ANSWER -to law enforcement authorities
concerning unlawful activities (permitted by law)
-as required to comply with federal/state/local law
-as necessary to defend against allegations of wrongdoing made by government
-To present or defend against a civil claim from the client
-as necessary to provide information to organization that are assessing CFP (compliance/standards)
Provide Information to a Client: Financial Advice - ANSWER Must Provide:
-description of the services and products to be provided
-how the client pays, and fee information
-How the professional is compensated for providing products and services
-the disclosure of any public discipline/bankruptcy/and where to find related information
-any and all material information that could affect a client's decision to engage a CFP
Provide Information to a Client: Financial Planning - ANSWER -the terms of the engagement between
client and CFP/ CFP's Firm
-scope of the engagement, limitations, periods in which service is provided, and client responsibility
-CFP is responsible for implementing, monitoring, and updated the Financial Plan
