CFP COURSE 1 COMBINED SET EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS
Recite the Preamble to the Code and Standards: - ANSWER-CFP Board's Code of
Ethics and Standards of Conduct reflects the commitment that all CFP® professionals
make to high standards of competency and ethics. CFP Board's Code and Standards
benefits and protects the public, provides standards for delivering financial planning,
and advances financial planning as a distinct and valuable profession. Compliance with
the Code and Standards is a requirement of CFP® certification that is critical to the
integrity of the CFP® marks. Violations of the Code and Standards may subject a CFP®
professional to discipline.
The Practice Standards for the Financial Planning Process (Practice Standards) is a
section of the Code and Standards in which the financial planning process is
_________________________________________________. - ANSWER-divided into
seven distinct steps
The CFP® Certification Examination will specifically reference the Practice Standards
by step number and/or name; therefore, committing this information to memory is
imperative. - ANSWER-
To comply with the Practice Standards, a CFP® professional must
· act prudently in ________________________________________, as the facts and
circumstances require;
· taking into account ____ things; name them. - ANSWER-documenting information
- 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.
To initiate services for a client that align with the guidelines stated in the Practice
Standards, CFP® professionals are required to disclose information to their client either
__________________ or _____________________. As a general rule, the planner
should ___________________________ whenever there is uncertainty about the
requirements and character of the client-planner engagement. The disclosure
requirements differ in ____________________ and ___________________________
depending on whether the financial planner is providing ________________________
or _____________________ - ANSWER-verbally
in writing
,document
content
delivery method
· Financial Advice
· Financial Planning.
With respect to client communications, approved methods of documentation include
____ things; name them. - ANSWER-3
· CRM software,
· handwritten notes, and
· emails.
To aid planners in gaining an understanding of the requirements, CFP Board has
prepared two disclosure guides. Name them. - ANSWER-Financial Advice
Engagements Disclosure Guide, and
Financial Planning Engagements Disclosure Guide
How many different types of financial disclosures are there? Name them. - ANSWER-10
Privacy Policy
Material Conflicts of Interest
Services and Products
How the client pays
How you, your firm, and related parties are compensated
Referral compensation arrangements
Public Discipline and Bankruptcy
Referral Compensation Arrangements
Other material information
Terms of engagement (implementing, monitoring, and updating is required unless
explicitly excluded) - this is only for Financial Planning
Under the Financial Advice Engagements Disclosure Guide, which disclosure must be
written? verbal? verbal or written? - ANSWER-Written only
Privacy Policy
Verbal only
no disclosures are expressly and solely verbal
Written or Verbal
Material Conflicts of Interest
,Services and Products
How the client pays
How you, your firm, and related parties are compensated
Referral compensation arrangements
Public Discipline and Bankruptcy
Referral Compensation Arrangements
Other material information
Under the Financial Planning Engagements Disclosure Guide, which disclosures must
be written? verbal? - ANSWER-Written only
Privacy Policy
Services and Products
How the client pays
How you, your firm, and related parties are compensated
Referral compensation arrangements
Public Discipline and Bankruptcy
Referral Compensation Arrangements
Other material information
Terms of engagement (implementing, monitoring, and updating is required unless
explicitly excluded) - this is only for Financial Planning
Verbal only
no disclosures are expressly and solely verbal
Written or Verbal
Material Conflicts of Interest
For either Financial Advice or Financial Planning, which type of disclosure can be either
written or verbal - ANSWER-Material Conflicts of Interest
The financial planning process consists of ______________ logical steps. Although
these steps are generally taken in order, it is possible that
_____________________________________ during a ______________ client
meeting. - ANSWER-seven
more than one step might occur
single
What is Step 1 of the Financial Planning process? - ANSWER-Understanding the
Client's Personal and Financial Circumstances
What step of the Financial Planning process is understanding the Client's Personal and
Financial Circumstances? - ANSWER-Step 1
, In Step 1 of the Financial Planning process, A CFP® professional must describe to the
client the ___________________________and __________________________
information concerning the client's __________________________ and
__________________________________ needed to fulfill the
_______________________________ and ____________________________ to
obtain the information. - ANSWER-qualitative
quantitative
personal
financial circumstances
scope of engagement
collaborate with the client
Examples of qualitative or ____________________________ information include the
client's.... - ANSWER-subjective
health
life expectancy,
family circumstances
values
attitudes
expectations
earnings potential
risk tolerance
goals
needs
priorities, and
current course of action.
Is quantitative data objective or subjective? - ANSWER-objective
Is qualitative data objective or subjective? - ANSWER-subjective
Examples of quantitative or ____________________________ information include the
client's - ANSWER-objective
age
dependents
other professional advisors
income
expenses
cash flow
savings
assets
liabilities
QUESTIONS WITH 100% CORRECT
ANSWERS
Recite the Preamble to the Code and Standards: - ANSWER-CFP Board's Code of
Ethics and Standards of Conduct reflects the commitment that all CFP® professionals
make to high standards of competency and ethics. CFP Board's Code and Standards
benefits and protects the public, provides standards for delivering financial planning,
and advances financial planning as a distinct and valuable profession. Compliance with
the Code and Standards is a requirement of CFP® certification that is critical to the
integrity of the CFP® marks. Violations of the Code and Standards may subject a CFP®
professional to discipline.
The Practice Standards for the Financial Planning Process (Practice Standards) is a
section of the Code and Standards in which the financial planning process is
_________________________________________________. - ANSWER-divided into
seven distinct steps
The CFP® Certification Examination will specifically reference the Practice Standards
by step number and/or name; therefore, committing this information to memory is
imperative. - ANSWER-
To comply with the Practice Standards, a CFP® professional must
· act prudently in ________________________________________, as the facts and
circumstances require;
· taking into account ____ things; name them. - ANSWER-documenting information
- 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.
To initiate services for a client that align with the guidelines stated in the Practice
Standards, CFP® professionals are required to disclose information to their client either
__________________ or _____________________. As a general rule, the planner
should ___________________________ whenever there is uncertainty about the
requirements and character of the client-planner engagement. The disclosure
requirements differ in ____________________ and ___________________________
depending on whether the financial planner is providing ________________________
or _____________________ - ANSWER-verbally
in writing
,document
content
delivery method
· Financial Advice
· Financial Planning.
With respect to client communications, approved methods of documentation include
____ things; name them. - ANSWER-3
· CRM software,
· handwritten notes, and
· emails.
To aid planners in gaining an understanding of the requirements, CFP Board has
prepared two disclosure guides. Name them. - ANSWER-Financial Advice
Engagements Disclosure Guide, and
Financial Planning Engagements Disclosure Guide
How many different types of financial disclosures are there? Name them. - ANSWER-10
Privacy Policy
Material Conflicts of Interest
Services and Products
How the client pays
How you, your firm, and related parties are compensated
Referral compensation arrangements
Public Discipline and Bankruptcy
Referral Compensation Arrangements
Other material information
Terms of engagement (implementing, monitoring, and updating is required unless
explicitly excluded) - this is only for Financial Planning
Under the Financial Advice Engagements Disclosure Guide, which disclosure must be
written? verbal? verbal or written? - ANSWER-Written only
Privacy Policy
Verbal only
no disclosures are expressly and solely verbal
Written or Verbal
Material Conflicts of Interest
,Services and Products
How the client pays
How you, your firm, and related parties are compensated
Referral compensation arrangements
Public Discipline and Bankruptcy
Referral Compensation Arrangements
Other material information
Under the Financial Planning Engagements Disclosure Guide, which disclosures must
be written? verbal? - ANSWER-Written only
Privacy Policy
Services and Products
How the client pays
How you, your firm, and related parties are compensated
Referral compensation arrangements
Public Discipline and Bankruptcy
Referral Compensation Arrangements
Other material information
Terms of engagement (implementing, monitoring, and updating is required unless
explicitly excluded) - this is only for Financial Planning
Verbal only
no disclosures are expressly and solely verbal
Written or Verbal
Material Conflicts of Interest
For either Financial Advice or Financial Planning, which type of disclosure can be either
written or verbal - ANSWER-Material Conflicts of Interest
The financial planning process consists of ______________ logical steps. Although
these steps are generally taken in order, it is possible that
_____________________________________ during a ______________ client
meeting. - ANSWER-seven
more than one step might occur
single
What is Step 1 of the Financial Planning process? - ANSWER-Understanding the
Client's Personal and Financial Circumstances
What step of the Financial Planning process is understanding the Client's Personal and
Financial Circumstances? - ANSWER-Step 1
, In Step 1 of the Financial Planning process, A CFP® professional must describe to the
client the ___________________________and __________________________
information concerning the client's __________________________ and
__________________________________ needed to fulfill the
_______________________________ and ____________________________ to
obtain the information. - ANSWER-qualitative
quantitative
personal
financial circumstances
scope of engagement
collaborate with the client
Examples of qualitative or ____________________________ information include the
client's.... - ANSWER-subjective
health
life expectancy,
family circumstances
values
attitudes
expectations
earnings potential
risk tolerance
goals
needs
priorities, and
current course of action.
Is quantitative data objective or subjective? - ANSWER-objective
Is qualitative data objective or subjective? - ANSWER-subjective
Examples of quantitative or ____________________________ information include the
client's - ANSWER-objective
age
dependents
other professional advisors
income
expenses
cash flow
savings
assets
liabilities
