CFP GP Flashcards
Payment History
35%
Amounts owed
30%
Length of credit history
15%
New credit
10%
Credit mix
10%
FICO Poor
Under 580
FICO Fair
580-670
FICO Good
670-740
FICO Very Good
740-800
FICO Exceptional
800+
Expansion
Increasing GDP, decreasing unemployment
Contraction
Decreasing GDP, increasing unemployment
Peak
High GDP and very low unemployment
Trough
Very low (or negative) GDP and high, widespread unemployment
Early Expansion
Activity rebounds, credit begins to grow, profits grow rapidly, policy still stimulative, inventories low, sales improve
Mid Expansion
Growth peaking, credit growth strong, profit growth peaks, policy neutral, inventories & sales grow, equillibrium reached
Late Expansion
Growth moderating, credit tightens, earnings under pressure, policy contractionary, inventories grow & sales growth falls
Contraction
Falling activity, credit dries up, profits decline, policy eases, inventories & sales fall
Money Market
Short-term debt instruments
Capital Market
Long-term debt and equity; stock market, bond market, commodities, foreign exchange
Asset Protection Allowance
only available to parents
Income protection allowance
available for students and parents
Federal Supplemental Educational Opportunity Grant (FSEOG)
Need based, available to undergraduate students, based on the availability of funds at that school
Federal Supplemental Educational Opportunity Grant (FSEOG)
Need based, available to undergraduate students, based on the availability of funds at that school
Grace period on life insurance premiums
31 days
H0-5 Policy coverage for contents
Open contents, coverage at a limit of 50% of the Part A - Dwelling coverage limit
Periodic withdrawals from a deferred annuity held until age 59/5
LIFO basis
Dividends on participating life insurance polciies may be:
taken in cash
used to pay a portion of the next premium
left to accumulate
used to purchase a single-premium, paid-up addition
used to purchase one-year term insurance (fifth dividend option)
Universal Life Option A
Death benefit remains level
Universal Life Option B
death benefit is face amount plus cash value
HSA Non-qualified distributions
taxes and 20% PENALTY
Securities Act of 1933
Handles IPOs and Primary Markets
Securities Act of 1934
Regulates the secondary market; created the OTC
Secondary markets = organized exchange (NYSE) or OTC (NASDAQ)
Advisors Act of 1940
firms or sole practitioners that give advice and receive compensation must register with the SEC and protect investors
Regulation BI
Introduced with Dodd Frank Bill
Raised the bar from suitability to beneficial/client’s best interest
DOL Rule
Obama
Expanded Reg BI and fiduciary standards to ERISA accounts (IRAs)
Dodd Frank Act
Prevents excessive risk raking; Improved accountability and transparency
What must be delivered in writing ALWAYS?
Privacy Policy
What can be delivered orally regardless of advice vs. planning?
Material conflicts of interest
Time for response for SUBSEQUENT requests for information AFTER compliance counsel review
14
Time to respond to failure to cooperate notice
14
time for respondent to accept counter-offer
14
time for hearing documents, written statements & stipulations due to CFP Board counsel
45
time to update material changes and disciplinary history to CLIENTS
90
time to disclose bankruptcy to CFP board
30
time to disclose bankruptcy to clients
90
privacy policy delivery time
once every 12 months (unless no changes)
529 K-12
$10k, tuition only
Has the authority to investigate and file a Complaint against a Respondent for alleged violations of the Code of Ethics & Standards or Conduct
CFP Board Counsel
Has the authority to issue a final order that finds facts, determined whether a violation has occurred and imposes discipline in the form of a sanction
DEC
Conduct the hearing, consists of at least 3 persons
Hearing panel
What can happen after the CFP Board Counsel Delivers complaint?
settlement
answer
(respondent must pay hearing or settlemenet fee within 30 days)
Failure to answer a complaint
Suspension for 1 year and 1 day or Revocation
How long is suspension?
minimum of 90 days, maximum of 5 years
need written acknowledgement of charitable contributions from the charity
$250+
charitable orgs are required to provide a written disclosure to a donor who receives goods/services in exchange for a single payment of more than…
$75
for denotation less than $250
receipt
donation of more than $500
Section A of Form 8283 & donor letter
Donation of more than $5,000
Section B of Form 8283 & appraisal & donor letter
