FP511 FINAL EXAM QUESTIONS WITH
100% CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Which of the following activities would be appropriate if you were establishing and defining the
client-planner relationship or gathering information necessary to fulfill the engagement?
I. Collecting personal financial information
II. Inquiring about the number of dependents
III. Inquiring about the age or dates of birth of dependents
IV. Determining which stocks to purchase for the client's investment portfolio - ANS The
correct answer is I, II, and III. Establishing and defining the client-planner relationship does not
include determining which stocks or investments to purchase. This occurs in the fourth phase of
the financial planning process, developing the recommendations.
Which of the following CFP® certificants would likely be considered to be engaged in financial
planning or the material elements of financial planning?
I. Lance, who reviews a life insurance sales brochure with his client, Arthur, and completes a
variable life insurance application
II. Nadia, who conducts comprehensive data gathering regarding Jason's investments, life
insurance, retirement plans, wills, and trusts and makes recommendations for him - ANS The
correct answer is II only. Because Nadia's services involve several of the financial planning
subject areas and she is involved in the elements of financial planning, she is likely providing
financial planning. Lance's service to Arthur is limited, and the engagement would likely not be
considered financial planning.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,According to CFP Board Code of Ethics, Connor, a CFP® professional, is responsible for which of
the following?
I. Acting in the client's best interests
II. Avoiding or disclosing and managing conflicts of interest
III. Acting with honesty, integrity, competence, and diligence
IV. Maintaining the confidentiality and protect the privacy of client information - ANS The
correct answer is I, II, III, and IV. A CFP® professional must
Act with honesty, integrity, competence, and diligence.
Act in the client's best interests.
Exercise due care.
Avoid or disclose and manage conflicts of interest.
Maintain the confidentiality and protect the privacy of client information.
Act in a manner that reflects positively on the financial planning profession and CFP®
certification.
Amanda, a CFP® professional, is enjoying an afternoon at her son's school playground when she
is approached by Tracy, a fellow parent and teacher at a local elementary school. Their
conversation covers specifics about Tracy's personal and financial situation, with emphasis on a
recommended investment strategy for her 403(b) account. Amanda is aware that she is
providing Financial Advice to Tracy. Identify the correct application of rules from the Code and
Standards based on Amanda and Tracy's interaction. - ANS The correct answer is although
only Financial Advice has been determined, Amanda must uphold her Fiduciary Duty and must
follow the Code of Ethics. As a CFP® professional, Amanda is obligated to uphold the Code of
Ethics. In addition, since Financial Advice is occurring, Amanda must act as a Fiduciary, in the
best interest of Tracy. The introduction of the Code and Standards specifically states "The Code
of Ethics applies at all times, and sets forth principles that guide the behavior of CFP®
professionals, with elaboration provided in the Standards."
Bill and Sophia have recently retired and want to travel to Europe and then volunteer for local
mission work. They would also like to meet with Humphrey, their financial planner, to discuss
charitable contributions they would like to make to these local missions. Humphrey should
determine Bill and Sophia's life cycle phase to be - ANS The correct answer is the distribution
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, phase. The distribution/gifting phase begins subtly when a couple realizes that they can afford
to spend on things they never believed possible. The asset accumulation and
conservation/protection phases make this phase possible. For many people, there is a period
when they are being influenced by all three phases simultaneously, though not necessarily to
the same degree.
Whitney is designing her new email template which will reflect her recent certification as a
CFP® professional. Under her name, she has identified herself as a CFP™. In a tagline at the
bottom of the template, she advertises herself as a "CFP® expert." According to CFP Board's
guidelines regarding how the CFP®" marks may be used, which of the following is CORRECT?
I. Whitney has appropriately identified herself as a CFP™.
II. Advertising herself as a CFP® expert is prohibited by CFP Board. - ANS The correct answer
is II only. Statement I is incorrect. Although, Whitney can identify herself as a CFP®, it must be
done behind her name, not under it. If Whitney wants to identify herself under her name, she
should do so as a ™. Statement II is correct. "CFP®" must always be used with one of CFP
Board's approved nouns ("certificant", "professional", "practitioner", "certification", "mark", or
"exam") unless directly following the name of the individual certified by CFP Board. Here, it can
be used alone.
Maxine, age 57, would like to retire in 10 years. Currently, her debt is decreasing as her cash
flow and net worth are steadily increasing. Based on Maxine's current financial life cycle phase,
which of the following goals is she likely to have? - ANS The correct answer is long-term
goals, such as investing for retirement. Maxine is in the conservation/protection phase of the
financial life cycle. As such, her goals are likely longer-term goals, such as investing to provide
for future retirement income. In the accumulation phase of the financial life cycle, clients have
only limited discretionary income and, as a result, they are likely to focus on short-term, cost-
of-living goals. Finally, in the distribution/gifting phase, estate planning and capital preservation
are usually most important.
Blanca, a CFP® professional, has recently entered into a financial planning engagement with
Simon. As his financial planner, which of the following are Blanca's roles?
I. Analyzing Simon's current financial status
II. Assisting Simon in implementing the financial plan
III. Helping Simon identify financial goals and objectives - ANS The correct answer is I, II, and
III. The financial planner is responsible for analyzing clients' financial status, assisting clients in
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
100% CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Which of the following activities would be appropriate if you were establishing and defining the
client-planner relationship or gathering information necessary to fulfill the engagement?
I. Collecting personal financial information
II. Inquiring about the number of dependents
III. Inquiring about the age or dates of birth of dependents
IV. Determining which stocks to purchase for the client's investment portfolio - ANS The
correct answer is I, II, and III. Establishing and defining the client-planner relationship does not
include determining which stocks or investments to purchase. This occurs in the fourth phase of
the financial planning process, developing the recommendations.
Which of the following CFP® certificants would likely be considered to be engaged in financial
planning or the material elements of financial planning?
I. Lance, who reviews a life insurance sales brochure with his client, Arthur, and completes a
variable life insurance application
II. Nadia, who conducts comprehensive data gathering regarding Jason's investments, life
insurance, retirement plans, wills, and trusts and makes recommendations for him - ANS The
correct answer is II only. Because Nadia's services involve several of the financial planning
subject areas and she is involved in the elements of financial planning, she is likely providing
financial planning. Lance's service to Arthur is limited, and the engagement would likely not be
considered financial planning.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,According to CFP Board Code of Ethics, Connor, a CFP® professional, is responsible for which of
the following?
I. Acting in the client's best interests
II. Avoiding or disclosing and managing conflicts of interest
III. Acting with honesty, integrity, competence, and diligence
IV. Maintaining the confidentiality and protect the privacy of client information - ANS The
correct answer is I, II, III, and IV. A CFP® professional must
Act with honesty, integrity, competence, and diligence.
Act in the client's best interests.
Exercise due care.
Avoid or disclose and manage conflicts of interest.
Maintain the confidentiality and protect the privacy of client information.
Act in a manner that reflects positively on the financial planning profession and CFP®
certification.
Amanda, a CFP® professional, is enjoying an afternoon at her son's school playground when she
is approached by Tracy, a fellow parent and teacher at a local elementary school. Their
conversation covers specifics about Tracy's personal and financial situation, with emphasis on a
recommended investment strategy for her 403(b) account. Amanda is aware that she is
providing Financial Advice to Tracy. Identify the correct application of rules from the Code and
Standards based on Amanda and Tracy's interaction. - ANS The correct answer is although
only Financial Advice has been determined, Amanda must uphold her Fiduciary Duty and must
follow the Code of Ethics. As a CFP® professional, Amanda is obligated to uphold the Code of
Ethics. In addition, since Financial Advice is occurring, Amanda must act as a Fiduciary, in the
best interest of Tracy. The introduction of the Code and Standards specifically states "The Code
of Ethics applies at all times, and sets forth principles that guide the behavior of CFP®
professionals, with elaboration provided in the Standards."
Bill and Sophia have recently retired and want to travel to Europe and then volunteer for local
mission work. They would also like to meet with Humphrey, their financial planner, to discuss
charitable contributions they would like to make to these local missions. Humphrey should
determine Bill and Sophia's life cycle phase to be - ANS The correct answer is the distribution
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, phase. The distribution/gifting phase begins subtly when a couple realizes that they can afford
to spend on things they never believed possible. The asset accumulation and
conservation/protection phases make this phase possible. For many people, there is a period
when they are being influenced by all three phases simultaneously, though not necessarily to
the same degree.
Whitney is designing her new email template which will reflect her recent certification as a
CFP® professional. Under her name, she has identified herself as a CFP™. In a tagline at the
bottom of the template, she advertises herself as a "CFP® expert." According to CFP Board's
guidelines regarding how the CFP®" marks may be used, which of the following is CORRECT?
I. Whitney has appropriately identified herself as a CFP™.
II. Advertising herself as a CFP® expert is prohibited by CFP Board. - ANS The correct answer
is II only. Statement I is incorrect. Although, Whitney can identify herself as a CFP®, it must be
done behind her name, not under it. If Whitney wants to identify herself under her name, she
should do so as a ™. Statement II is correct. "CFP®" must always be used with one of CFP
Board's approved nouns ("certificant", "professional", "practitioner", "certification", "mark", or
"exam") unless directly following the name of the individual certified by CFP Board. Here, it can
be used alone.
Maxine, age 57, would like to retire in 10 years. Currently, her debt is decreasing as her cash
flow and net worth are steadily increasing. Based on Maxine's current financial life cycle phase,
which of the following goals is she likely to have? - ANS The correct answer is long-term
goals, such as investing for retirement. Maxine is in the conservation/protection phase of the
financial life cycle. As such, her goals are likely longer-term goals, such as investing to provide
for future retirement income. In the accumulation phase of the financial life cycle, clients have
only limited discretionary income and, as a result, they are likely to focus on short-term, cost-
of-living goals. Finally, in the distribution/gifting phase, estate planning and capital preservation
are usually most important.
Blanca, a CFP® professional, has recently entered into a financial planning engagement with
Simon. As his financial planner, which of the following are Blanca's roles?
I. Analyzing Simon's current financial status
II. Assisting Simon in implementing the financial plan
III. Helping Simon identify financial goals and objectives - ANS The correct answer is I, II, and
III. The financial planner is responsible for analyzing clients' financial status, assisting clients in
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
