CFP exam questions with correct answers graded A+

CFP exam 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 CFP Board of Professional Review - correct answer • Inquiry Panel - grounds for discipline • The Hearing Panel - Recommendation to board • Board of Appeal - w/in 30 days Topic 3: Financial Planning Practice Standards - correct answer ...