BUSI 352 - Test 6
CFP Board - correct answer Certified Financial Planner Board of Standards, Inc. - a
non-profit organization whose mission is to benefit the public by granting the CFP certification and
upholding it as the recognized standard of excellence for competent and ethical personal financial
planning.
Standards of Professional Conduct - correct answer Enforced through the
procedures outlined in the Disciplinary Rules and Standards. Includes three main categories: Code of
Ethics and Standards of Conduct, Procedural Rules, and Candidate Fitness Standards.
Practice Standards for the Financial Planning Process - correct answer 1)
Understanding the Client's Personal and Financial Circumstances 2) Identifying and Selecting Goals 3)
Analyzing the Client's Current Course of Action and Potential Alterative Course(s) of Action 4)
Developing the Financial Planning Recommendation(s) 5) Presenting the Financial Planning
Recommendation(s) 6) Implementing the Financial Planning Recommendation(s) 7) Monitoring and
Updating Responsibilities
Code of Ethics - correct answer 1) Integrity 2) Competence 3) Diligence 4) Due Care
5) Professionalism 6) Confidentiality
Procedural Rules - correct answer These provide detailed procedures followed by
the CFP Board in enforcing the Code of Ethics and Standards of Conduct. The CFP Board may learn about
matters that may reveal misconduct via: Investigation, Requests for Documents and Information, and
the Hearing Process (occurs when a formal complaint is filed).
Disciplinary and Ethic Commission (DEC) - correct answer Responsible for reviewing
and taking appropriate action with respect to alleged violation of the Code of Ethics and Standards of
Conduct.
Categories of Sanction - correct answer 1) Private Censure 2) Public Censure 3)
Suspension 4) Revocation 5) Interim Suspension
CFP Board - correct answer Certified Financial Planner Board of Standards, Inc. - a
non-profit organization whose mission is to benefit the public by granting the CFP certification and
upholding it as the recognized standard of excellence for competent and ethical personal financial
planning.
Standards of Professional Conduct - correct answer Enforced through the
procedures outlined in the Disciplinary Rules and Standards. Includes three main categories: Code of
Ethics and Standards of Conduct, Procedural Rules, and Candidate Fitness Standards.
Practice Standards for the Financial Planning Process - correct answer 1)
Understanding the Client's Personal and Financial Circumstances 2) Identifying and Selecting Goals 3)
Analyzing the Client's Current Course of Action and Potential Alterative Course(s) of Action 4)
Developing the Financial Planning Recommendation(s) 5) Presenting the Financial Planning
Recommendation(s) 6) Implementing the Financial Planning Recommendation(s) 7) Monitoring and
Updating Responsibilities
Code of Ethics - correct answer 1) Integrity 2) Competence 3) Diligence 4) Due Care
5) Professionalism 6) Confidentiality
Procedural Rules - correct answer These provide detailed procedures followed by
the CFP Board in enforcing the Code of Ethics and Standards of Conduct. The CFP Board may learn about
matters that may reveal misconduct via: Investigation, Requests for Documents and Information, and
the Hearing Process (occurs when a formal complaint is filed).
Disciplinary and Ethic Commission (DEC) - correct answer Responsible for reviewing
and taking appropriate action with respect to alleged violation of the Code of Ethics and Standards of
Conduct.
Categories of Sanction - correct answer 1) Private Censure 2) Public Censure 3)
Suspension 4) Revocation 5) Interim Suspension
