FP 511 Test with all Correct & 100% Verified Answers |
Actual Complete Exam |Already Graded A+
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. ✔Correct 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 ✔Correct
Answer-All of the above - because Joseph is a licensed attorney he can draft legal documents as
well
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 ✔Correct 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. ✔Correct 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?
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 ✔Correct 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 ✔Correct 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
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? ✔Correct 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? ✔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. ✔Correct 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 duty and abide by the code of ethics
following the practice standards for the FP planning process is not required
Joni J. Smith, Certified Financial Planner®
i. "Certified Financial Planner" must be changed to all capital letters.
ii. The ™ must be used instead of ®.
iii. "Certified Financial Planner" must change to "CFP."
iv. A CFP Board‒approved noun must be added. ✔Correct Answer-i. and ii. - the CFP board
guidelines on proper use it has to be in all caps and TM not R
Identify the actions that occur in Step 1 of the Practice Standards for the Financial Planning
Process, Understanding the Client's Personal and Financial Circumstances.
i. Obtaining qualitative and quantitative information
ii. Analyzing information
iii. Addressing incomplete information
iv. Establishing mutually defined goals ✔Correct Answer-i., ii., iii., understanding the personal
and financial circumstances includes obtaining qualitative and quantitative information,
analyzing information, and addressing incomplete information
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 ✔Correct Answer-i. iii. and iv. - duties for a CFP when
working with additional persons the CFP professional must, communicate with the other
professional about the services each will provide and their respective responsibilities and
inform the client in a timely manner if the other professional did not perform the services in
accordance with the scope of services to be provided and the allocation of responsibilities
CFP professionals do not have to monitor the practices of the other professional
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 trust officer
ii. An estate-planning attorney
iii. A property and casualty agent
iv. A Certified Public Accountant (CPA) ✔Correct Answer-All of the above - a team of financial
advisors may include all of these professionals and potentially others like a life insurance agent
Actual Complete Exam |Already Graded A+
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. ✔Correct 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 ✔Correct
Answer-All of the above - because Joseph is a licensed attorney he can draft legal documents as
well
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 ✔Correct 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. ✔Correct 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?
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 ✔Correct 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 ✔Correct 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
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? ✔Correct 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? ✔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. ✔Correct 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 duty and abide by the code of ethics
following the practice standards for the FP planning process is not required
Joni J. Smith, Certified Financial Planner®
i. "Certified Financial Planner" must be changed to all capital letters.
ii. The ™ must be used instead of ®.
iii. "Certified Financial Planner" must change to "CFP."
iv. A CFP Board‒approved noun must be added. ✔Correct Answer-i. and ii. - the CFP board
guidelines on proper use it has to be in all caps and TM not R
Identify the actions that occur in Step 1 of the Practice Standards for the Financial Planning
Process, Understanding the Client's Personal and Financial Circumstances.
i. Obtaining qualitative and quantitative information
ii. Analyzing information
iii. Addressing incomplete information
iv. Establishing mutually defined goals ✔Correct Answer-i., ii., iii., understanding the personal
and financial circumstances includes obtaining qualitative and quantitative information,
analyzing information, and addressing incomplete information
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 ✔Correct Answer-i. iii. and iv. - duties for a CFP when
working with additional persons the CFP professional must, communicate with the other
professional about the services each will provide and their respective responsibilities and
inform the client in a timely manner if the other professional did not perform the services in
accordance with the scope of services to be provided and the allocation of responsibilities
CFP professionals do not have to monitor the practices of the other professional
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 trust officer
ii. An estate-planning attorney
iii. A property and casualty agent
iv. A Certified Public Accountant (CPA) ✔Correct Answer-All of the above - a team of financial
advisors may include all of these professionals and potentially others like a life insurance agent
