CFP - Ethics Flashcards
A CFP must disclose updates to public disciplinary history or bankruptcy information must be disclosed to the Client within how many days?
90 days
Direct fee charged to client or related to financial assets is called?
Fee-only
Commissions, fees, or compensation received as a result of selling or recommending a financial asset is called?
Sales Related Compensation
A combination of FEE-ONLY & SALES RELATED COMPENSATION is called?
Fee-Based
____ is a collaborative process that helps maximize a Client’s potential for meeting life goals through Financial Advice that integrate relevant elements of the Client’s personal and financial circumstances
Financial Planning
Which is more important? Qualitative or Quantitative client information
BOTH are EQUALLY important
If the CFP(R) professional does not state monitoring responsibilities, what is the assumption?
Assumption is that the CFP is doing the monitoring
What happens if the client provides incomplete information?
Either limit the Scope of the Engagement OR terminate the engagement
Uber Is A Drunk Person’s Immediate Motor vehicle
Understand
Identify
Analyze
Develop
Present
Implement
Monitor
Obligations to notify employer of suspension from use of CFP trademark?
Prompt notification.
Not required to submit additional information beyond notice of suspension.
Do driving offenses, tickets and misdemeanors that do not involve alcohol or drugs count as relevant misdemeanors?
NO
A CFP(R) professional must provide written notice to CFP Board within ___ days after felony or relevant misdemeanor or regulatory action/investigation OR Finding in a Regulatory action OR civil judgment or Fraud/Theft OR professional license revoked OR been terminated due to dishonesty OR personal/business bankruptcy OR tax lien
30 days (includes weekends & holidays)
Professional should report both the initial charge/investigation AND the outcome
CFP Board defines a felony as
One year or more in jail or over a $1,000 fine
Can you use the CFP(R) mark while completing education?
NO
Can you use the CFP(R) mark while completing experience/exam?
NO, use “Candidate for CFP(R) Certification”
Acceptable use of logo?
CFP(R)
CERTIFIED FINANCAL PLANNING (TM)
How often must compensation be disclosed?
Ongoing, as necessitated by services and products provided
Interim Suspension Order regarding use of CFP(R) designation? Any appeals? How long does CFP have to respond?
Lasts for 45 days, NO appeals, must respond within 14 days
How long does one have to respond to notice of investigation?
30 days
How long does Revocation of use of CFP(R) mark last?
PERMANENT
How long do you have to notify CFP Board of a change of mailing address?
30 days
How long does suspension last?
90 days to 5 years
One bankruptcy
CFP Board within 30 days
Clients within 90 days
Accept a public censure OR pay a hearing fee
“ALWAYS” bar list
-Felony
-Theft, embezzlement, tax fraud or other financial/tax crimes
-Felony conviction of any degree of murder or rape (no time limit)
-Violent crime within the past 5 years
-Revocation of a financial professional license
-Broker/dealer, insurance, accountant, financial planner
