CFP 1

Question 1

Duty of Loyalty to the Client

Answer 1

Act honestly and place the client’s interest ahead of his/her own and all other interests

Question 2

Principle 2: Integrity

Answer 2

Rigorous adherence to the moral rules and duties imposed by honesty and justice – to observe both the letter and the spirit of the code

Question 3

Principle 3: Objectivity

Answer 3

Requires intellectual honesty, impartiality, and the exercise of sound judgement regardless of the services delivered or in whatever capacity they function

Question 4

Principle 4: Competence

Answer 4

• Should develop and maintain the abilities, skills, and knowledge necessary to competently provide advice and services to clients
• Attaining and maintaining a high level of knowledge and skill, and applying that knowledge effectively in providing advice and services to clients

Question 5

Principle 5: Fairness

Answer 5

• Requires providing clients with what they should reasonably expect from a professional relationship
• Include honesty and disclosure of all relevant facts, including conflicts of interest

Question 6

Principle 6: Confidentiality

Answer 6

• Requires that client information be secured, protected, and maintained in a manner that allows access only to those who are authorized
• Relationship of trust can only be built on the understanding the confidential info will be collected, used, and disclosed only as authorized

Question 7

Principle 7: Diligence

Answer 7

• Degree of care in handling their clients’ affairs
• Requires fulfilling professional commitments in a timely and thorough manner and taking due care in guiding, informing, planning, supervising, and delivering financial advice

Question 8

Principle 8: Professionalism

Answer 8

• Refers to conduct that inspires confidence and respect from clients and the community, and embodies all other principles within the code