1
FP 511 ACTUAL EXAM |
UPDATE|COMPREHENSIVE FREQUENT
MOST-TESTED QUESTIONS AND
VERIFIED ANSWERS/SOLUTIONS|GET IT
100% ACCURATE!!
Identify corrections to the business card displaying the following name:
Joni J. Smith, Certified Financial Planner®
a. "Certified Financial Planner" must be changed to all capital letters.
b The ™ must be used instead of ®.
c. "Certified Financial Planner" must change to "CFP."
d. A CFP Board‒approved noun must be added. - (ANSWER)"Certified Financial
Planner" must be changed to all capital letters and the TM has to be used instead
of copyright
Joseph, a licensed attorney, decided to focus more on financial planning and no
longer offer divorce advice. As a member of a team of financial advisers, Joseph's
responsibilities to his client typically include which of the following?
i. Helping the client identify and select financial goals
ii. Drafting a power of attorney for the client
iii. Analyzing the client's current course of action
iv. Monitoring whether the client is complying with a plan after implementation -
(ANSWER)All of the above - because Joseph is a licensed attorney he can draft
legal documents as well
,2
Identify the responsibilities a CFP® professional must uphold while working with
another professional on a client's behalf.
i. Communicate with the other professional about the services each will provide
ii. Monitor the professional to ensure their compliance with the Code and
Standards
iii. Communicate respective responsibilities
iv. Inform the client in a timely manner if the other professional did not perform
the services in accordance with the scope of services - (ANSWER)i., iii., and iv. -
CFP professionals do not have to monitor the professional to ensure compliance
with the Code and Standards
When a client-planner engagement involves Financial Advice for which Financial
Planning is required, and the client does not enlist the planner for services, the
Planner must abide by
i. Fiduciary Duty.
ii. the Code of Ethics.
iii. the Practice Standards for the Financial Planning Process.
iv. the Suitability Standard. - (ANSWER)i. and ii - in instances where the
engagement involves financial advice that requires financial planning but the
client does not enlist the planners services the planners must uphold the fiduciary
duty and abide by the code of ethics but the practice standards is not required
According to the CFP Board's Code and Ethics, under Standards of Conduct that
relate to Duties Owed to Clients, which of the following are requirements with
which the CFP® certificant must comply?
,3
i Make only recommendations that are suitable for the client.
ii. Use the CFP® mark in compliance with the rules and regulations of the CFP
Board.
iii. Exercise reasonable care when supervising persons acting under the CFP®
professional's direction.
iv. May not make false or misleading representations to CFP Board or obstruct
CFP Board in the performance of its duties - (ANSWER)i. only - while all of those
duties are in the code they are not all under duties owed to clients, it is important
to read the questions carefully.
For example - the correct use of the CFP mark is found in teh rules related to
Obligations to the CFP board not to clients, excercising reasonable care when
supervising persons acting under the CFP professionals direction is found in duties
owed to firms and subordinates, not to clients
Developing a financial plan often involves input from a team of financial advisors
employed by the client. Members of this team may include which of the following
professionals?
i. A CPA
ii. A banker
iii. A private money manager
iv. An estate-planning attorney - (ANSWER)All of the above - a team of financial
advisors may include all of these professionals, this team might include other
professionals as well like a life insurance agent or a property and casualty
insurance agent
, 4
Bertha, age 55, plans to retire in 10 years. Currently, her cash flow and net worth
are steadily increasing as her debt is decreasing. Based on Bertha's current
financial life cycle phase, which of the following goals is she is likely to have? -
(ANSWER)- Long term goals such as investing for retirement, Bertha is in the
conservation/protection phase. Her goals are likely more long term like investing
for retirement income
Analyze the scenario. Ling, a CFP® professional, is providing financial advice to her
client. After considering the client's goals, family medical history, tax situation,
and financial resources, she develops a financial plan that recommends that the
client purchase long-term care insurance. Which statement regarding
implementation responsibilities is NOT correct? - (ANSWER)Ling is not
responsible for implementing this planning recommendation because it only
involves the purchase of one single product. Ling is responsible for implementing
the recommendations unless implementation is specifically excluded from the
scope of engagement
When a client-planner engagement involves Financial Advice for which Financial
Planning is required, and the client does not enlist the planner for services, the
Planner must abide by
i. Fiduciary Duty.
ii. the Code of Ethics.
iii. the Practice Standards for the Financial Planning Process.
iv. the Suitability Standard. - (ANSWER)i and ii - in instances where the
engagement involves financial advice that requires financial planning but the
client does not enlist the planners services the planner must uphold the fiduciary
FP 511 ACTUAL EXAM |
UPDATE|COMPREHENSIVE FREQUENT
MOST-TESTED QUESTIONS AND
VERIFIED ANSWERS/SOLUTIONS|GET IT
100% ACCURATE!!
Identify corrections to the business card displaying the following name:
Joni J. Smith, Certified Financial Planner®
a. "Certified Financial Planner" must be changed to all capital letters.
b The ™ must be used instead of ®.
c. "Certified Financial Planner" must change to "CFP."
d. A CFP Board‒approved noun must be added. - (ANSWER)"Certified Financial
Planner" must be changed to all capital letters and the TM has to be used instead
of copyright
Joseph, a licensed attorney, decided to focus more on financial planning and no
longer offer divorce advice. As a member of a team of financial advisers, Joseph's
responsibilities to his client typically include which of the following?
i. Helping the client identify and select financial goals
ii. Drafting a power of attorney for the client
iii. Analyzing the client's current course of action
iv. Monitoring whether the client is complying with a plan after implementation -
(ANSWER)All of the above - because Joseph is a licensed attorney he can draft
legal documents as well
,2
Identify the responsibilities a CFP® professional must uphold while working with
another professional on a client's behalf.
i. Communicate with the other professional about the services each will provide
ii. Monitor the professional to ensure their compliance with the Code and
Standards
iii. Communicate respective responsibilities
iv. Inform the client in a timely manner if the other professional did not perform
the services in accordance with the scope of services - (ANSWER)i., iii., and iv. -
CFP professionals do not have to monitor the professional to ensure compliance
with the Code and Standards
When a client-planner engagement involves Financial Advice for which Financial
Planning is required, and the client does not enlist the planner for services, the
Planner must abide by
i. Fiduciary Duty.
ii. the Code of Ethics.
iii. the Practice Standards for the Financial Planning Process.
iv. the Suitability Standard. - (ANSWER)i. and ii - in instances where the
engagement involves financial advice that requires financial planning but the
client does not enlist the planners services the planners must uphold the fiduciary
duty and abide by the code of ethics but the practice standards is not required
According to the CFP Board's Code and Ethics, under Standards of Conduct that
relate to Duties Owed to Clients, which of the following are requirements with
which the CFP® certificant must comply?
,3
i Make only recommendations that are suitable for the client.
ii. Use the CFP® mark in compliance with the rules and regulations of the CFP
Board.
iii. Exercise reasonable care when supervising persons acting under the CFP®
professional's direction.
iv. May not make false or misleading representations to CFP Board or obstruct
CFP Board in the performance of its duties - (ANSWER)i. only - while all of those
duties are in the code they are not all under duties owed to clients, it is important
to read the questions carefully.
For example - the correct use of the CFP mark is found in teh rules related to
Obligations to the CFP board not to clients, excercising reasonable care when
supervising persons acting under the CFP professionals direction is found in duties
owed to firms and subordinates, not to clients
Developing a financial plan often involves input from a team of financial advisors
employed by the client. Members of this team may include which of the following
professionals?
i. A CPA
ii. A banker
iii. A private money manager
iv. An estate-planning attorney - (ANSWER)All of the above - a team of financial
advisors may include all of these professionals, this team might include other
professionals as well like a life insurance agent or a property and casualty
insurance agent
, 4
Bertha, age 55, plans to retire in 10 years. Currently, her cash flow and net worth
are steadily increasing as her debt is decreasing. Based on Bertha's current
financial life cycle phase, which of the following goals is she is likely to have? -
(ANSWER)- Long term goals such as investing for retirement, Bertha is in the
conservation/protection phase. Her goals are likely more long term like investing
for retirement income
Analyze the scenario. Ling, a CFP® professional, is providing financial advice to her
client. After considering the client's goals, family medical history, tax situation,
and financial resources, she develops a financial plan that recommends that the
client purchase long-term care insurance. Which statement regarding
implementation responsibilities is NOT correct? - (ANSWER)Ling is not
responsible for implementing this planning recommendation because it only
involves the purchase of one single product. Ling is responsible for implementing
the recommendations unless implementation is specifically excluded from the
scope of engagement
When a client-planner engagement involves Financial Advice for which Financial
Planning is required, and the client does not enlist the planner for services, the
Planner must abide by
i. Fiduciary Duty.
ii. the Code of Ethics.
iii. the Practice Standards for the Financial Planning Process.
iv. the Suitability Standard. - (ANSWER)i and ii - in instances where the
engagement involves financial advice that requires financial planning but the
client does not enlist the planners services the planner must uphold the fiduciary
