CFP EXAM 2026/2027 UPDATE | VERIFIED QUESTIONS & ANSWERS
100% CORRECT | GRADED A+
Topic 1: Financial Planning Process - ANSWER ...
6 step process: EGADIM - ANSWER 1. Establish Relationship
2. Gather Information
3. Analyze data
4. Develop plan
5. Implement
6. Monitor
Step 1: Establish Relationship - ANSWER • Services that will be provided
• compensation/billing
• Responsibilities of both client/planner
• Time frame of relationship
Step 2: Gather quantitative and qualitative data - ANSWER • It is important that goals be defined
before any recommendations
• A goal should be specific, prioritized and quantified
• Fact finder form
Step 3: Analyze data - ANSWER • Identify strengths and weaknesses
• Analysis of current position
• Should be based on realistic assumptions
Step 4: Develop Plan - ANSWER • Objective
• Should be presented to client
• Mutually decide on revisions
• Prioritized list of implementation steps and timing
, Step 5: Implement - ANSWER • Work closely with other professional team members
• Help client with product acquisitions
Step 6: Monitor - ANSWER • Fed tax changes
• Economic changes
• Modifications to plan
Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules Procedures - ANSWER ...
Aspirational Principles - ANSWER • Integrity
• Objectivity
• Competence
• Fairness
• Confidentiality
• Professionalism
• Diligence
Confidential Information can be disclosed only when... - ANSWER • The client consents
• Court ordered
• CFP must defend accusations
• Civil suit between client and CFP
CFP Board of Professional Review - ANSWER • Inquiry Panel - grounds for discipline
• The Hearing Panel - Recommendation to board
• Board of Appeal - w/in 30 days
Topic 3: Financial Planning Practice Standards - ANSWER ...
Purpose of practice standards - ANSWER • To ensure professionals follow agreed upon norms
• To advance professionalism
• To enhance value of planning process
100% CORRECT | GRADED A+
Topic 1: Financial Planning Process - ANSWER ...
6 step process: EGADIM - ANSWER 1. Establish Relationship
2. Gather Information
3. Analyze data
4. Develop plan
5. Implement
6. Monitor
Step 1: Establish Relationship - ANSWER • Services that will be provided
• compensation/billing
• Responsibilities of both client/planner
• Time frame of relationship
Step 2: Gather quantitative and qualitative data - ANSWER • It is important that goals be defined
before any recommendations
• A goal should be specific, prioritized and quantified
• Fact finder form
Step 3: Analyze data - ANSWER • Identify strengths and weaknesses
• Analysis of current position
• Should be based on realistic assumptions
Step 4: Develop Plan - ANSWER • Objective
• Should be presented to client
• Mutually decide on revisions
• Prioritized list of implementation steps and timing
, Step 5: Implement - ANSWER • Work closely with other professional team members
• Help client with product acquisitions
Step 6: Monitor - ANSWER • Fed tax changes
• Economic changes
• Modifications to plan
Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules Procedures - ANSWER ...
Aspirational Principles - ANSWER • Integrity
• Objectivity
• Competence
• Fairness
• Confidentiality
• Professionalism
• Diligence
Confidential Information can be disclosed only when... - ANSWER • The client consents
• Court ordered
• CFP must defend accusations
• Civil suit between client and CFP
CFP Board of Professional Review - ANSWER • Inquiry Panel - grounds for discipline
• The Hearing Panel - Recommendation to board
• Board of Appeal - w/in 30 days
Topic 3: Financial Planning Practice Standards - ANSWER ...
Purpose of practice standards - ANSWER • To ensure professionals follow agreed upon norms
• To advance professionalism
• To enhance value of planning process
