CFP Section 1, Chapter 16 Revision
Questions And Answers 2025/2026
What is the function of the Certified Financial Board of Standards, Inc. (CFP Board)? - Answer
The CFP Board maintains professional standards necessary for competency and ethics in the
financial plan- ning profession for those professionals who have been granted the right to use
their designation. The CFP Board determines who may use their markings and enforces the
requirements for certificants and Professionals Eligible for Reinstatement.
Discuss the difference between a CFP® certificant and Professionals Eligible for Reinstatement.
- Answer A certificant is an individual who is currently certified by the CFP Board whereas a
Professionals Eligible for Reinstatement is an individual, not currently certified (but has been
certified by CFP Board in the past) and has an entitlement to potentially use the CFP® marks. A
Professionals Eligible for Reinstatement includes an individual who has relinquished certification
and who is eligible for reinstatement without being required to pass the current CFP
certification examination.
What areas of ethics are included in the Standards of Professional Conduct? - Answer • The
Standards of Professional Conduct include:
• Code of Ethics and Professional Responsibility
• Rules of Conduct
• Financial Planning Practice Standards
• Disciplinary Rules and Procedures
• Candidate Fitness Standards
These ethical areas form part of the certification process and create terms and conditions
imposed upon certif- icants and Professionals Eligible for Reinstatement.
What is the Code of Ethics and Professional Responsibility (Code of Ethics)? - Answer The Code
of Ethics sets forth general statements regarding ethical and professional ideals that certificants
and Professionals Eligible for Reinstatement are expected to enact into their professional
activities. The Code of Ethics provide seven principles that are "aspirational in character,"
meaning they (1) are basic tenets of fairness and professionalism that all in the profession
should aspire or (2) are examples of how certificants and Profes- sionals Eligible for
, CFP Section 1, Chapter 16 Revision
Questions And Answers 2025/2026
Reinstatement should act. The seven principles include: Principle 1 - Integrity Principle 2 -
Objectivity Principle 3 - Competence Principle 4 - Fairness Principle 5 - Confidentiality Principle 6
- Professionalism Principle 7 - Diligence
Discuss the Rules of Conduct and the six categories within the rules. - Answer The Rules of
Conduct establish expected high standards and describe the level of professionalism required.
The Rules of Conduct govern all individuals who have the right to use the CFP® marks, whether
or not those marks are actually used.
The six different categories that form the Rules of Conduct include:
1. Definingtherelationshipwithaprospectiveclientorclient;
2. Information disclosed to prospective clients and clients;
3. Prospectiveclientandclientinformationandproperty;
4. Obligationstoprospectiveclientsandclients;
5. Obligationstoemployers;and
6. ObligationstoCFPBoard.
Importantly, the Rules of Conduct address the fiduciary standard of care applicable to the CFP®
financial planning profession (Rule 1.4) when providing financial planning or "material
elements" of financial plan- ning. A fiduciary is defined by the CFP Board as "one who acts in
utmost good faith, in a manner he or she reasonably believes to be in the best interest of the
client."
Define the Financial Planning Practice Standards and the various series that form the
standards. - Answer The Practice Standards seek to establish the level of professional practice
expected of certificants engaged in financial planning. The Practice standards are mandatory for
all certificants whose services include financial planning or material elements of financial
planning.
The Practice Standards provide the level of professional practice expected of certificants as
pertains to:
• Practice Standards 100 Series: Establishing and Defining the Relationship with a Client;
Questions And Answers 2025/2026
What is the function of the Certified Financial Board of Standards, Inc. (CFP Board)? - Answer
The CFP Board maintains professional standards necessary for competency and ethics in the
financial plan- ning profession for those professionals who have been granted the right to use
their designation. The CFP Board determines who may use their markings and enforces the
requirements for certificants and Professionals Eligible for Reinstatement.
Discuss the difference between a CFP® certificant and Professionals Eligible for Reinstatement.
- Answer A certificant is an individual who is currently certified by the CFP Board whereas a
Professionals Eligible for Reinstatement is an individual, not currently certified (but has been
certified by CFP Board in the past) and has an entitlement to potentially use the CFP® marks. A
Professionals Eligible for Reinstatement includes an individual who has relinquished certification
and who is eligible for reinstatement without being required to pass the current CFP
certification examination.
What areas of ethics are included in the Standards of Professional Conduct? - Answer • The
Standards of Professional Conduct include:
• Code of Ethics and Professional Responsibility
• Rules of Conduct
• Financial Planning Practice Standards
• Disciplinary Rules and Procedures
• Candidate Fitness Standards
These ethical areas form part of the certification process and create terms and conditions
imposed upon certif- icants and Professionals Eligible for Reinstatement.
What is the Code of Ethics and Professional Responsibility (Code of Ethics)? - Answer The Code
of Ethics sets forth general statements regarding ethical and professional ideals that certificants
and Professionals Eligible for Reinstatement are expected to enact into their professional
activities. The Code of Ethics provide seven principles that are "aspirational in character,"
meaning they (1) are basic tenets of fairness and professionalism that all in the profession
should aspire or (2) are examples of how certificants and Profes- sionals Eligible for
, CFP Section 1, Chapter 16 Revision
Questions And Answers 2025/2026
Reinstatement should act. The seven principles include: Principle 1 - Integrity Principle 2 -
Objectivity Principle 3 - Competence Principle 4 - Fairness Principle 5 - Confidentiality Principle 6
- Professionalism Principle 7 - Diligence
Discuss the Rules of Conduct and the six categories within the rules. - Answer The Rules of
Conduct establish expected high standards and describe the level of professionalism required.
The Rules of Conduct govern all individuals who have the right to use the CFP® marks, whether
or not those marks are actually used.
The six different categories that form the Rules of Conduct include:
1. Definingtherelationshipwithaprospectiveclientorclient;
2. Information disclosed to prospective clients and clients;
3. Prospectiveclientandclientinformationandproperty;
4. Obligationstoprospectiveclientsandclients;
5. Obligationstoemployers;and
6. ObligationstoCFPBoard.
Importantly, the Rules of Conduct address the fiduciary standard of care applicable to the CFP®
financial planning profession (Rule 1.4) when providing financial planning or "material
elements" of financial plan- ning. A fiduciary is defined by the CFP Board as "one who acts in
utmost good faith, in a manner he or she reasonably believes to be in the best interest of the
client."
Define the Financial Planning Practice Standards and the various series that form the
standards. - Answer The Practice Standards seek to establish the level of professional practice
expected of certificants engaged in financial planning. The Practice standards are mandatory for
all certificants whose services include financial planning or material elements of financial
planning.
The Practice Standards provide the level of professional practice expected of certificants as
pertains to:
• Practice Standards 100 Series: Establishing and Defining the Relationship with a Client;
