1.05 - Professional Conduct Flashcards
What are the three primary activities in the financial planning process?
1) Collection of data to develop a plan; 2) Analysis to identify opportunities, constraints and strategies, 3) Developing recommendation
What are the 12 technical topics / bodies of knowledge for which a financial planner must be versed in?
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
What are the 4 key competencies of a financial planner?
1) Critical thinking; 2) Interpersonal / relationship building; 3) Communication; 4) Teamwork / collaboration
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?
Critical thinking
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?
Interpersonal / relationship building
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?
Communication
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?
Teamwork / collaboration
What are the 8 principles in the FP Canada CFP code of ethics?
1) Duty of loyalty to the client; 2) Integrity; 3) Objectivity; 4) Competence; 5) Fairness; 6) Confidentiality; 7) Diligence; 8) Professionalism
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?
Duty to the client
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?
Integrity
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?
Objectivity
What code of ethics principle is the CFP professional demonstrating when they pursue ongoing professional development to keep their skill set current?
Competence
What code of ethics principle is the CFP professional demonstrating when they disclose conflicts of interest and their compensation model?
Fairness
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?
Confidentiality
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?
Diligence
