1.05 - Professional Conduct

Question 1

What are the three primary activities in the financial planning process?

Answer 1

1) Collection of data to develop a plan; 2) Analysis to identify opportunities, constraints and strategies, 3) Developing recommendation

Question 2

What are the 12 technical topics / bodies of knowledge for which a financial planner must be versed in?

Answer 2

1) Financial planning profession and industry regulation; 2) Financial analysis; 3) Credit and debt; 4) Registered retirement plans; 5) Government benefit plans; 6) Registered education and disability plans; 7) Economics; 8) Investments; 9) Taxation; 10) Law; 11) Insurance, 12) Human behaviour

Question 3

What are the 4 key competencies of a financial planner?

Answer 3

1) Critical thinking; 2) Interpersonal / relationship building; 3) Communication; 4) Teamwork / collaboration

Question 4

What competency is demonstrated when a planner gathers facts about the client, curates relevant information and completes a comparative analysis to determine appropriate recommendations for the client?

Answer 4

Critical thinking

Question 5

What competency is demonstrated when a planner builds trust by successfully guiding a client through a difficult conversation about how their personal values and biases may come into conflict with the achievement of their long-term financial goals?

Answer 5

Interpersonal / relationship building

Question 6

What competency is demonstrated when a planner internalizes the needs of the client and distills complex information / recommendations into understandable, actionable take-aways that are fully understood by the client?

Answer 6

Communication

Question 7

What competency is demonstrated when roles and responsibilities between planner and client are clearly understood, and the planner secures the client’s consent to include a life insurance professional in the conversation, based on the conversation?

Answer 7

Teamwork / collaboration

Question 8

What are the 8 principles in the FP Canada CFP code of ethics?

Answer 8

1) Duty of loyalty to the client; 2) Integrity; 3) Objectivity; 4) Competence; 5) Fairness; 6) Confidentiality; 7) Diligence; 8) Professionalism

Question 9

What code of ethics principle is the CFP professional demonstrating when they eschew their own personal beliefs and make recommendations based purely on their understanding of their client?

Answer 9

Duty to the client

Question 10

What code of ethics principle is the CFP professional demonstrating when their words and actions are aligned with the rules of conduct and the code of ethics?

Answer 10

Integrity

Question 11

What code of ethics principle is the CFP professional demonstrating when they are making recommendations based on unbiased data, and are best suited for the client?

Answer 11

Objectivity

Question 12

What code of ethics principle is the CFP professional demonstrating when they pursue ongoing professional development to keep their skill set current?

Answer 12

Competence

Question 13

What code of ethics principle is the CFP professional demonstrating when they disclose conflicts of interest and their compensation model?

Answer 13

Fairness

Question 14

What code of ethics principle is the CFP professional demonstrating when they ask for consent to in advance of using a client for a reference?

Answer 14

Confidentiality

Question 15

What code of ethics principle is the CFP professional demonstrating when they apply due care in handling the affairs of their clients, including the planning and supervision of others?

Answer 15

Diligence

Question 16

What code of ethics principle is the CFP professional demonstrating when they adhere to the Canada Standards of Professional Responsibility in order to maintain the reputation of the profession?

Answer 16

Professionalism

Question 17

What are the minimum annual continuing education (CE) credit requirements for QAFP and CFP professionals?

Answer 17

12 credits for QAFP and 25 credits for CFP

Question 18

What are the 5 categories of continuing education?

Answer 18

1) Financial planning; 2) Practice management; 3) Product knowledge; 4) Giving back; 5) Professional responsibility

Question 19

What is the credit structure for the financial planning CE category?

Answer 19

Minimum 10 credits per year, maximum of 25 credits carried over to subsequent years

Question 20

What is the credit structure for the practice management, product knowledge and giving back CE categories?

Answer 20

No minimum, max of 5 credit per year, excess cannot be carried forward

Question 21

What is the credit structure for the professional responsibility CE category?

Answer 21

Minimum 2 credits per year, excess counted towards financial planning category

Question 22

What are the 6 categories of approved continuing education activities?

Answer 22

1) Seminars and conferences; 2) coursework (self study, online with exam, credit courses, etc.); 3) Prep courses; 4) Writing; 5) Teaching; 6) Volunteering