Dalton CFP Review Questions And Answers Exam Revision Material 2025
Peril - Answer Proximate cause of a loss
Hazard - Answer Condition that creates or increases the likelihood of a loss
Superannuation - Answer Risk of outliving retirement funds
Legal elements of a contract - Answer COALL Competent parties; Offer; Acceptance; Legal
Consideration; Lawful purpose
6 Steps to Risk Mgmnt - Answer DIE DIE Determine obj; Identify risks; Evaluate probability of
loss; Determine alternatives; Implement; Evaluate/Monitor
5 Dividend Options of Participating Whole Life Policies - Answer CRAPO Cash; Reduce prems;
Accumulate at interest; Paid-up additions; One yr term (5th div option on exam)
Notify CFP Board of chg to contact info w/in ______ dys & _______ dys for a conviction -
Answer 45 & 10 calendar dys
Define an invstmt advisor acc. to the Investment Advisor's Act of 1940 - Answer ABC providing
Advice; in the Business; for Compensation
ADV Part 1 contains? ADV Part 2 contains? - Answer Part 1: Name, educ, bus & discipinary
history for last 10 yrs
Part 2: comp/fees, educ, invstmt obj, conflicts of interest, background of advisory personnel
Advisor w/ <$100mil must reg with _______________.
Advisor w/ >$100mil must reg with _______________. - Answer <$100mil = state
>$100mil = SEC
,Dalton CFP Review Questions And Answers Exam Revision Material 2025
Define an accredited investor - Answer 1,2,3,4 test!
$1mil net worth (not home/re-asses every 4 yrs))
$200K annual inc if single
$300K annual inc if married
4 Elements determining if advisor is Engaged in Financial Planning - Answer 1) client's
understanding/intent to do so
2) degree to which 2+ subj areas are involved
3) comprehensiveness of data gathering
4) breadth/depth of recs
6 Steps to Financial Planning - Answer EGADIM - Even God Admits Dat It's Mesmerizing
Establish mutually-defined agreement
Gather client data
Analyze the data
Develop/present the plan recs
Implement/delegate the plan
Monitor the plan
Conduct that will ALWAYS bar a candidate from CFP - Answer Revocation of a fin prof license
Felonies: Theft; tax fraud; embezzlement; any fin crime. Also murder/rape; any violent crime in
last 5 yrs
, Dalton CFP Review Questions And Answers Exam Revision Material 2025
Conduct that is PRESUMED to be unacceptable for CFP - Answer Revocation of non-fin prof
license
2+ personal/bus bankruptcies
Suspension of fin license
Felonies: non-violent w/in 5 yrs; violent 5+ yrs
EXCEPTIONS to the Invstmt Advisor's Act of 1940
(don't have to register w/ SEC) - Answer TABLES
Teachers; Accountants; Brokers; Lawyers; Engineers
Also banks/holding co; newspapers; magazines; advisors of only gov't securities
EXEMPTIONS to the Invstmt Advisor's Act of 1940
(don't have to register w/ SEC) - Answer VIPs are SaFE
Venture capital
Insurance co
Private funds (less than $150mil)
State-only advisors
Foreign advisors w/ no bus address in US
non-Exchange advisors
(when the securities aren't on a nat'l exchange)
Recession is ____ consecutive mos or ____ qtrs of declining ____.
Depression is ___ consecutive mos or ___ qtrs of declining ____. - Answer Recession= 6 mos 2
qtrs GDP
Peril - Answer Proximate cause of a loss
Hazard - Answer Condition that creates or increases the likelihood of a loss
Superannuation - Answer Risk of outliving retirement funds
Legal elements of a contract - Answer COALL Competent parties; Offer; Acceptance; Legal
Consideration; Lawful purpose
6 Steps to Risk Mgmnt - Answer DIE DIE Determine obj; Identify risks; Evaluate probability of
loss; Determine alternatives; Implement; Evaluate/Monitor
5 Dividend Options of Participating Whole Life Policies - Answer CRAPO Cash; Reduce prems;
Accumulate at interest; Paid-up additions; One yr term (5th div option on exam)
Notify CFP Board of chg to contact info w/in ______ dys & _______ dys for a conviction -
Answer 45 & 10 calendar dys
Define an invstmt advisor acc. to the Investment Advisor's Act of 1940 - Answer ABC providing
Advice; in the Business; for Compensation
ADV Part 1 contains? ADV Part 2 contains? - Answer Part 1: Name, educ, bus & discipinary
history for last 10 yrs
Part 2: comp/fees, educ, invstmt obj, conflicts of interest, background of advisory personnel
Advisor w/ <$100mil must reg with _______________.
Advisor w/ >$100mil must reg with _______________. - Answer <$100mil = state
>$100mil = SEC
,Dalton CFP Review Questions And Answers Exam Revision Material 2025
Define an accredited investor - Answer 1,2,3,4 test!
$1mil net worth (not home/re-asses every 4 yrs))
$200K annual inc if single
$300K annual inc if married
4 Elements determining if advisor is Engaged in Financial Planning - Answer 1) client's
understanding/intent to do so
2) degree to which 2+ subj areas are involved
3) comprehensiveness of data gathering
4) breadth/depth of recs
6 Steps to Financial Planning - Answer EGADIM - Even God Admits Dat It's Mesmerizing
Establish mutually-defined agreement
Gather client data
Analyze the data
Develop/present the plan recs
Implement/delegate the plan
Monitor the plan
Conduct that will ALWAYS bar a candidate from CFP - Answer Revocation of a fin prof license
Felonies: Theft; tax fraud; embezzlement; any fin crime. Also murder/rape; any violent crime in
last 5 yrs
, Dalton CFP Review Questions And Answers Exam Revision Material 2025
Conduct that is PRESUMED to be unacceptable for CFP - Answer Revocation of non-fin prof
license
2+ personal/bus bankruptcies
Suspension of fin license
Felonies: non-violent w/in 5 yrs; violent 5+ yrs
EXCEPTIONS to the Invstmt Advisor's Act of 1940
(don't have to register w/ SEC) - Answer TABLES
Teachers; Accountants; Brokers; Lawyers; Engineers
Also banks/holding co; newspapers; magazines; advisors of only gov't securities
EXEMPTIONS to the Invstmt Advisor's Act of 1940
(don't have to register w/ SEC) - Answer VIPs are SaFE
Venture capital
Insurance co
Private funds (less than $150mil)
State-only advisors
Foreign advisors w/ no bus address in US
non-Exchange advisors
(when the securities aren't on a nat'l exchange)
Recession is ____ consecutive mos or ____ qtrs of declining ____.
Depression is ___ consecutive mos or ___ qtrs of declining ____. - Answer Recession= 6 mos 2
qtrs GDP
