CFP Chapter 1 With Revision
Questions And Answers 2025/2026
Financial planning - Answer is the integrated, coordinated management of an individual's
financial situation. Within a planning engagement, a financial plan is carefully crafted and serves
as the guiding document to bring an assortment of information together—this includes
investments, insurance policies, estate planning documents, and files of relevant financial
information. By design, the financial planning process includes monitoring and updating
responsibilities, which allow for the planner to adequately adjust for changes in the client's
personal situation, financial situation, and economic conditions.
Code and Standards - Answer benefit and protect the public, provide standards for delivering
financial planning, and advance financial planning as a distinct and valuable profession.
To comply with the Practice Standards, a CFP® professional must - Answer act prudently in
documenting information, as the facts and circumstances require;
taking into account - the significance of the information, - the need to preserve the information
in writing, - the obligation to act in the client's best interests, and - the CFP® professional's firm's
policies and procedures.
Approved methods of documentation include - Answer CRM software, handwritten notes, and
emails.
Financial Advice Engagements Disclosure Guide and the Financial
Planning Engagements Disclosure Guide. - Answer This information can be delivered to a client
either prior to or at the time of the engagement.
Steps of the Financial Planning Process - Answer 1. Understanding the Client's Personal and
Financial Circumstances - Obtaining Qualitative and Quantitative Information, Analyzing
Information, and Addressing Incomplete Information.
, CFP Chapter 1 With Revision
Questions And Answers 2025/2026
Step 2: Identifying and Selecting Goals - Identifying Potential Goals and Selecting and Prioritizing
Goals.
Step 3: Analyzing the Client's Current Course of Action and Potential Alternative Course(s) of
Action - Analyzing Current Course of Action and Analyzing Potential Alternative Courses of
Action.
Step 4: Developing the Financial Planning Recommendation(s) - For each recommendation
selected, the professional must consider the following information: a. The assumptions and
estimates used to develop the recommendation;
b. The basis for making the recommendation, including how the recommendation is designed to
maximize the potential to meet the client's goals, the anticipated material effects of the
recommendation on the client's financial and personal circumstances, and how the
recommendation integrates relevant elements of the client's personal and financial
circumstances;
c. The timing and priority of the recommendation; and d. Whether the recommendation is
independent or must be implemented with another recommendation.
Step 5: Presenting the Financial Planning Recommendation(s) - Personal and economic
assumptions Interdependence of recommendations Material advantages and disadvantages
Risks Time sensitivity
Step 6: Implementing the Financial Planning Recommendation(s) - Addressing Implementation
Responsibilities; Identifying, Analyzing, and Selecting Actions, Products, and Services;
Recommending Actions, Products, and Services for Implementation; Selecting and
Implementing Actions, Products, or Services. - The practitioner's responsibilities may include,
but are not limited to, the following: Identifying activities necessary
Questions And Answers 2025/2026
Financial planning - Answer is the integrated, coordinated management of an individual's
financial situation. Within a planning engagement, a financial plan is carefully crafted and serves
as the guiding document to bring an assortment of information together—this includes
investments, insurance policies, estate planning documents, and files of relevant financial
information. By design, the financial planning process includes monitoring and updating
responsibilities, which allow for the planner to adequately adjust for changes in the client's
personal situation, financial situation, and economic conditions.
Code and Standards - Answer benefit and protect the public, provide standards for delivering
financial planning, and advance financial planning as a distinct and valuable profession.
To comply with the Practice Standards, a CFP® professional must - Answer act prudently in
documenting information, as the facts and circumstances require;
taking into account - the significance of the information, - the need to preserve the information
in writing, - the obligation to act in the client's best interests, and - the CFP® professional's firm's
policies and procedures.
Approved methods of documentation include - Answer CRM software, handwritten notes, and
emails.
Financial Advice Engagements Disclosure Guide and the Financial
Planning Engagements Disclosure Guide. - Answer This information can be delivered to a client
either prior to or at the time of the engagement.
Steps of the Financial Planning Process - Answer 1. Understanding the Client's Personal and
Financial Circumstances - Obtaining Qualitative and Quantitative Information, Analyzing
Information, and Addressing Incomplete Information.
, CFP Chapter 1 With Revision
Questions And Answers 2025/2026
Step 2: Identifying and Selecting Goals - Identifying Potential Goals and Selecting and Prioritizing
Goals.
Step 3: Analyzing the Client's Current Course of Action and Potential Alternative Course(s) of
Action - Analyzing Current Course of Action and Analyzing Potential Alternative Courses of
Action.
Step 4: Developing the Financial Planning Recommendation(s) - For each recommendation
selected, the professional must consider the following information: a. The assumptions and
estimates used to develop the recommendation;
b. The basis for making the recommendation, including how the recommendation is designed to
maximize the potential to meet the client's goals, the anticipated material effects of the
recommendation on the client's financial and personal circumstances, and how the
recommendation integrates relevant elements of the client's personal and financial
circumstances;
c. The timing and priority of the recommendation; and d. Whether the recommendation is
independent or must be implemented with another recommendation.
Step 5: Presenting the Financial Planning Recommendation(s) - Personal and economic
assumptions Interdependence of recommendations Material advantages and disadvantages
Risks Time sensitivity
Step 6: Implementing the Financial Planning Recommendation(s) - Addressing Implementation
Responsibilities; Identifying, Analyzing, and Selecting Actions, Products, and Services;
Recommending Actions, Products, and Services for Implementation; Selecting and
Implementing Actions, Products, or Services. - The practitioner's responsibilities may include,
but are not limited to, the following: Identifying activities necessary
