CFP Exam - General Financial Planning Principles, Professional Conduct, and Regulation New Update 2023

CFP Exam - General Financial Planning Principles, Professional Conduct, and Regulation New Update 2023 Financial Planning - CORRECT ANSWER The integrated, coordinated management of an individual’s financial situation. Code of Ethics and Standards of Conduct (Code and Standards) are intended to - CORRECT ANSWER Benefit and protect the public, provide standards for delivering financial planning, and advance financial planning as a distinct and valuable profession, Practice Standards - CORRECT ANSWER 7 steps - Understand, Identify, Analyze, Develop, Present, Implement, Monitor Name the 7 steps outlined in the Practice Standards - CORRECT ANSWER 1 - Understand the Client's Personal and Financial Circumstances 2 - Identifying and Selecting Goals 3 - Analyzing the Client's Current Course of Action and Potential Alternative Course(s) of Action 4 - Developing the Financial Planning Recommendations 5 - Presenting the Financial Planning Recommendation(s) 6 - Implementing the Financial Planning Recommendation(s) 7 - Monitoring Progress and Updating What occurs in Step 1 - Understanding - CORRECT ANSWER in this step, information is gathered to gain an understanding of the client's personal and financial circumstances. This is quantitative and qualitative data. If the practitioner is unable to obtain sufficient and relevant quantitative information, the practitioner must, - CORRECT ANSWER Either restrict the scope of engagement or terminate the engagement Privacy Policy - CORRECT ANSWER Verbal or written material conflicts of interest - must be delivered to the client prior to or at the time of engagement. This applies to BOTH financial planning and financial advice.