4 Day Review - Flash Cards

Question 1

What is the continuing education requirement for a CFP?

Answer 1

30 Hours Total (including 20 hrs + 2 hours of ethics)

Question 2

When must a privacy document (confidentiality agreement) be in writing?

What may be provided orally to a client when providing financial planning or giving financial advice?

Answer 2

Financial Planning & Financial Advice
-Both must provide privacy documents/confidentiality agreement, in writing

-Both may provide material conflicts of interest, orally or in writing

Financial Planning:

• *Material Conflicts of Interest (can be provided orally or in writing)**
• *Privacy Policy / confidentiality agreement (must be in writing)**

Must be in writing:
Privacy Policy / confidentiality agreement
Services/Products
How the client pays
How firm/related parties are compensated
Public discipline/bankruptcy
Referral compensation arrangements
Terms of engagement (implementing, monitoring and updating required unless explicitly excluded)
Other material information

Financial Advice:

• *Material Conflicts of Interest (can be provided orally or in writing)**
• *Privacy Policy / confidentiality agreement (must be in writing)**

Question 3

When must you notify the CFP of material changes?
When must you notify a client with a location of relevant webpages?
When must you notify a client of compensation changes?

Answer 3

When must you notify the CFP of material changes? 30 days
When must you notify a client with a location of relevant webpages? 90 days
When must you notify a client of compensation changes? promptly

Question 4

What are the four categories of information gathered by the financial planner in Step 1 of the Practice Standards?

Answer 4

• List of assets and liabilities
• Dollar values
• Ownership information
• Contractual agreements

Question 5

What is the latest time within the Practice Standards must conflicts of interest, sources of compensation or material relationships with other professionals be disclosed to a client?

Answer 5

Conflicts of interest, sources of compensation or material relationships with other professionals NOT PREVIOUSLY DISCLOSED shall be disclosed during IMPLEMENTATION

Question 6

What conduct is deemed unacceptable and will always bar an individual from becoming certified?

What conduct is presumed unacceptable and will bar an invidual from beingcoming certified (unless inividual petitions the Disciplinary and Ethics Committee?)

Answer 6

ALWAYS BAR

FELONY CONVICTION

• Theft, embezzlement, financial based
• Tax fraud or tax-related
• Any degree murder or rape
• Violent crime within 5 years

FINANCIAL PROFESSIONAL LICENSE REVOCATION
*Unless administrative in nature

PRESUMED BAR

FELONY CONVICTION

• Violent crimes (*not murder/rape) OVER 5 YEARS AGO
• Non-violent crimes and perjury WITHIN 5 YEARS

OR

SUSPENSIONS / REVOCATIONS
Financial Professional SUSPENSIONS
Non-Financial Suspensions/Revocations (e.g. real-estate/attorney)
*Unless administrative in nature

OR

BANKTRUPTCY
-TWO or more personal and/or business