CFP Exam UPDATED Exam Questions and CORRECT Answers

CFP Exam UPDATED Exam Questions and
CORRECT Answers
Topic 1: Financial Planning Process - CORRECT ANSWER - ...



6 step process: EGADIM - CORRECT ANSWER - 1. Establish Relationship
2. Gather Information
3. Analyze data
4. Develop plan
5. Implement
6. Monitor


Step 1: Establish Relationship - CORRECT ANSWER - • Services that will be provided
• compensation/billing
• Responsibilities of both client/planner
• Time frame of relationship


Step 2: Gather quantitative and qualitative data - CORRECT ANSWER - • It is important
that goals be defined before any recommendations
• A goal should be specific, prioritized and quantified
• Fact finder form


Step 3: Analyze data - CORRECT ANSWER - • Identify strengths and weaknesses
• Analysis of current position
• Should be based on realistic assumptions


Step 4: Develop Plan - CORRECT ANSWER - • Objective
• Should be presented to client

, • Mutually decide on revisions
• Prioritized list of implementation steps and timing


Step 5: Implement - CORRECT ANSWER - • Work closely with other professional team
members
• Help client with product acquisitions


Step 6: Monitor - CORRECT ANSWER - • Fed tax changes
• Economic changes
• Modifications to plan


Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules Procedures -
CORRECT ANSWER - ...



Aspirational Principles - CORRECT ANSWER - • Integrity
• Objectivity
• Competence
• Fairness
• Confidentiality
• Professionalism
• Diligence


Confidential Information can be disclosed only when... - CORRECT ANSWER - • The
client consents
• Court ordered
• CFP must defend accusations
• Civil suit between client and CFP