CFP-101 Unit 8: Professional Conduct
and Fiduciary Responsibility Exam
Questions + Verified Answers 100%
correct, Update 2026
Financial planning -
correct answer ✅"the process of determining whether and how an
individual can meet life goals through the proper manage- ment of
financial resources."
financial planning process -
correct answer ✅1. Establishing and defining the client-planner
relationship
2. Gathering client data, including goals
3. Analyzing and evaluating the client's current financial status
4. Developing and presenting recommendations, alternatives, or
both
5. Implementing the recommendations
6. Monitoring the recommendations
subject matter of financial planning -
correct answer ✅■financial statement preparation and analysis;
■ education planning;
■ risk management;
■ investment planning;
,CFP-101 Unit 8: Professional Conduct
and Fiduciary Responsibility Exam
Questions + Verified Answers 100%
correct, Update 2026
■ income tax planning;
■ retirement planning;
■ estate planning.
Activities CFP Board may consider not to be material elements of
the financial planning process include: -
correct answer ✅■completing paperwork to open a brokerage
account;
■ acting as an order-taker for brokerage services;
■ engaging solely in sales activity related to insurance
■ acting as a mortgage broker without providing any other
financial
■ completing tax returns without providing any other financial
services; and
■ teaching a financial class or continuing education program.
When does a financial planning engagement exist? -
correct answer ✅exists whenever a CFP® professional performs
any type of mutually agreed upon financial plan- ning service for a
client.
, CFP-101 Unit 8: Professional Conduct
and Fiduciary Responsibility Exam
Questions + Verified Answers 100%
correct, Update 2026
Fiduciary relationships include: -
correct answer ✅■ agent/broker and principal;
■ trustee and beneficiary;
■ investment adviser and client;
■ attorney and client;
■ board of directors and company/shareholders.
Nick, a CFP® professional, knows that he must provide a fiduciary
duty of care when engaging in financial planning services for his
clients. Therefore, Nick must do all of the following EXCEPT
A exercise sound judgment when making financial planning
recommendations for clients
B make recommendations based on what will maximize Nick's
compensation
C only offer services for which he is competent
and Fiduciary Responsibility Exam
Questions + Verified Answers 100%
correct, Update 2026
Financial planning -
correct answer ✅"the process of determining whether and how an
individual can meet life goals through the proper manage- ment of
financial resources."
financial planning process -
correct answer ✅1. Establishing and defining the client-planner
relationship
2. Gathering client data, including goals
3. Analyzing and evaluating the client's current financial status
4. Developing and presenting recommendations, alternatives, or
both
5. Implementing the recommendations
6. Monitoring the recommendations
subject matter of financial planning -
correct answer ✅■financial statement preparation and analysis;
■ education planning;
■ risk management;
■ investment planning;
,CFP-101 Unit 8: Professional Conduct
and Fiduciary Responsibility Exam
Questions + Verified Answers 100%
correct, Update 2026
■ income tax planning;
■ retirement planning;
■ estate planning.
Activities CFP Board may consider not to be material elements of
the financial planning process include: -
correct answer ✅■completing paperwork to open a brokerage
account;
■ acting as an order-taker for brokerage services;
■ engaging solely in sales activity related to insurance
■ acting as a mortgage broker without providing any other
financial
■ completing tax returns without providing any other financial
services; and
■ teaching a financial class or continuing education program.
When does a financial planning engagement exist? -
correct answer ✅exists whenever a CFP® professional performs
any type of mutually agreed upon financial plan- ning service for a
client.
, CFP-101 Unit 8: Professional Conduct
and Fiduciary Responsibility Exam
Questions + Verified Answers 100%
correct, Update 2026
Fiduciary relationships include: -
correct answer ✅■ agent/broker and principal;
■ trustee and beneficiary;
■ investment adviser and client;
■ attorney and client;
■ board of directors and company/shareholders.
Nick, a CFP® professional, knows that he must provide a fiduciary
duty of care when engaging in financial planning services for his
clients. Therefore, Nick must do all of the following EXCEPT
A exercise sound judgment when making financial planning
recommendations for clients
B make recommendations based on what will maximize Nick's
compensation
C only offer services for which he is competent
