CFP Board's Code of Ethics and Standards of Conduct Test
with all Correct & 100% Verified Answers |Latest Version
|Already Graded A+
CFP Board's Code of Ethics and Standards of Conduct definite... ✔Correct Answer-the
expected level of professional conduct and practice for CFP certificants
A CFP certificant, or CFP professional, is an individual who ✔Correct Answer-has passed the
CFP exam and fulfilled the Education, Experience, and Ethics requirement set by CFP board
Code of Ethics is comprised of.... ✔Correct Answer-6 principals
The 6 Principals of CFP Board of Ethics are... ✔Correct Answer-1. Act with honesty, integrity,
competence, and diligence
2. act in the client's best interest
3. exercise due care
4. avoid or disclose and manage conflicts of interest
5. maintain the confidentiality and protect the privacy of client information
6. act in a manner that reflects positively on the financial planning profession and CFP
certification
Standards of Conduct (Standards) ✔Correct Answer-articulate professional duties that CFP
professionals must hold
The Standards are comprised of how many section ✔Correct Answer-6
Standards sections ✔Correct Answer-1. duties owed to clients
2. financial planning and application of the practice standards for the financial planning process
3. practice standards for the financial planning process
4. duties owed to firms and subordinates
5. duties owed to CFP Board
6. Prohibition on circumvention
How many CFP Duties Owed to Clients are there? ✔Correct Answer-15
Standard A.1 ✔Correct Answer-Fiduciary Duty
Standards A.1 (fiduciary duty) specifies ✔Correct Answer-"At all times when providing
financial advice to a client, a CFP professional must as as a fiduciary, and therefore, act in the
best interests of the client."
, To uphold fiduciary standard, CFP professional is required to fulfill the following three duties:
✔Correct Answer-1. Duty of Loyalty
2. Duty of Care
3. Duty to Follow Client Instructions
Duty of Loyalty ✔Correct Answer-placing client's interests ahead of the CFP professional, the
CFP professional's firm, or any other entity. Includes fully avoiding, fully disclosing, obtaining
consent or managing conflicts of interest
Duty of Care ✔Correct Answer-CFP professional must engage the client with care, skill,
prudence, and diligence. Fulfillment of this duty requires consideration of the client's goals, risk
tolerance, objectives, and circumstances
Duty to Follow Client Instructions ✔Correct Answer-CFP professionals are obligated to adhere
to the Terms of the Engagement and must follow "reasonable and lawful" client instructions
Standard A.2 ✔Correct Answer-Integrity
Standard A.2 Integrity spcifies ✔Correct Answer-a CFP professional must perform professional
services with integrity. Integrity demadns honesty and candor, which may not be subordinated
to personal gain or advantage. The standards also contains the standards antifraud language
that exists in law and regulation, the interpretations of which will guide interpretation of this
standards
Standards A.3 ✔Correct Answer-Competence
Standard A.3 (Competence) specifies ✔Correct Answer-a CFP professional must provide
professional services with competence, which means with relevant knowledge and skill to apply
to that knowledge. When the CFP professional is not sufficiently competent in a particular area
to provide the professional services, the CFP profesional must gain competence, obtain the
assistance of a competent profesional, limit or terminate the Engagement, and/or refer the
client to a competent proffessional
Standard A.4 ✔Correct Answer-diligence
Standard A.4 (Diligence) specifies ✔Correct Answer-a CFP professional must provide
professional services, including responding to reasonable client inquiries, in a timely and
thorough manner
Standard A.5 ✔Correct Answer-Disclose and Manage Conflicts of Interest
Standard A.5 (Disclose and manage conflicts of interest) specifies that ✔Correct Answer-a CFP
professional must.
1. avoid or full disclose material conflicts of interest by providing sufficiently specific facts
with all Correct & 100% Verified Answers |Latest Version
|Already Graded A+
CFP Board's Code of Ethics and Standards of Conduct definite... ✔Correct Answer-the
expected level of professional conduct and practice for CFP certificants
A CFP certificant, or CFP professional, is an individual who ✔Correct Answer-has passed the
CFP exam and fulfilled the Education, Experience, and Ethics requirement set by CFP board
Code of Ethics is comprised of.... ✔Correct Answer-6 principals
The 6 Principals of CFP Board of Ethics are... ✔Correct Answer-1. Act with honesty, integrity,
competence, and diligence
2. act in the client's best interest
3. exercise due care
4. avoid or disclose and manage conflicts of interest
5. maintain the confidentiality and protect the privacy of client information
6. act in a manner that reflects positively on the financial planning profession and CFP
certification
Standards of Conduct (Standards) ✔Correct Answer-articulate professional duties that CFP
professionals must hold
The Standards are comprised of how many section ✔Correct Answer-6
Standards sections ✔Correct Answer-1. duties owed to clients
2. financial planning and application of the practice standards for the financial planning process
3. practice standards for the financial planning process
4. duties owed to firms and subordinates
5. duties owed to CFP Board
6. Prohibition on circumvention
How many CFP Duties Owed to Clients are there? ✔Correct Answer-15
Standard A.1 ✔Correct Answer-Fiduciary Duty
Standards A.1 (fiduciary duty) specifies ✔Correct Answer-"At all times when providing
financial advice to a client, a CFP professional must as as a fiduciary, and therefore, act in the
best interests of the client."
, To uphold fiduciary standard, CFP professional is required to fulfill the following three duties:
✔Correct Answer-1. Duty of Loyalty
2. Duty of Care
3. Duty to Follow Client Instructions
Duty of Loyalty ✔Correct Answer-placing client's interests ahead of the CFP professional, the
CFP professional's firm, or any other entity. Includes fully avoiding, fully disclosing, obtaining
consent or managing conflicts of interest
Duty of Care ✔Correct Answer-CFP professional must engage the client with care, skill,
prudence, and diligence. Fulfillment of this duty requires consideration of the client's goals, risk
tolerance, objectives, and circumstances
Duty to Follow Client Instructions ✔Correct Answer-CFP professionals are obligated to adhere
to the Terms of the Engagement and must follow "reasonable and lawful" client instructions
Standard A.2 ✔Correct Answer-Integrity
Standard A.2 Integrity spcifies ✔Correct Answer-a CFP professional must perform professional
services with integrity. Integrity demadns honesty and candor, which may not be subordinated
to personal gain or advantage. The standards also contains the standards antifraud language
that exists in law and regulation, the interpretations of which will guide interpretation of this
standards
Standards A.3 ✔Correct Answer-Competence
Standard A.3 (Competence) specifies ✔Correct Answer-a CFP professional must provide
professional services with competence, which means with relevant knowledge and skill to apply
to that knowledge. When the CFP professional is not sufficiently competent in a particular area
to provide the professional services, the CFP profesional must gain competence, obtain the
assistance of a competent profesional, limit or terminate the Engagement, and/or refer the
client to a competent proffessional
Standard A.4 ✔Correct Answer-diligence
Standard A.4 (Diligence) specifies ✔Correct Answer-a CFP professional must provide
professional services, including responding to reasonable client inquiries, in a timely and
thorough manner
Standard A.5 ✔Correct Answer-Disclose and Manage Conflicts of Interest
Standard A.5 (Disclose and manage conflicts of interest) specifies that ✔Correct Answer-a CFP
professional must.
1. avoid or full disclose material conflicts of interest by providing sufficiently specific facts
