FP511 Practice Exam Correct 100%!

FP511 Practice Exam Correct 100%!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? 1 Collecting personal financial information 2 Inquiring about the number of dependents 3 Inquiring about the age or dates of birth of dependents 4 Determining which stocks to purchase for the client's investment portfolio - ANSWER 1-3 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? 1 Lance, who reviews a life insurance sales brochure with his client, Arthur, and completes a variable life insurance application 2 Nadia, who conducts comprehensive data gathering regarding Jason's investments, life insurance, retirement plans, wills, and trusts and makes recommendations for him - ANSWER 2 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. According to CFP Board Code of Ethics, Connor, a CFP® professional, is responsible for which of the following? 1 Acting in the client's best interests 2 Avoiding or disclosing and managing conflicts of interest 3 Acting with honesty, integrity, competence, and diligence 4 Maintaining the confidentiality and protect the privacy of client information - ANSWER All 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®