Code of Ethics

Question 1

CFP Professional must(6):

Answer 1

1. Act with honesty, integrity, competence and diligence
2. Act in client’s best interest
3. Exercise due care
4. Avoid or disclose and manage conflicts of interest
5. Maintain the confidentiality and protect privacy of client information.
6. Act in a manner that reflects positively on the financial planning profession and CFP certification

Question 2

Fiduciary duty to client means

Answer 2

Duty of Loyalty, Care, and can follow instructions.

Question 3

Integrity duty to client means

Answer 3

honesty upstanding and candor

Question 4

Competence duty to client means

Answer 4

Relevantly apply knowledge

Question 5

Diligence duty to client means

Answer 5

Timely and thoroughly

Question 6

Disclose/Manage conflict duty to client means

Answer 6

Active consent, disclosure, manage material conflict, ambiguity

Question 7

Sound and effective judgement duty to client means

Answer 7

exercise judgment, not subordinated

Question 8

Professionalism duty to client means

Answer 8

Dignity, courtesy and respect

Question 9

Comply with law duty to client means

Answer 9

Laws, rules, regulations, standards

Question 10

Confidentiality and privacy duty to client means

Answer 10

Consent, ordinary business, Legal and Enforcement purposes, policies

Question 11

Provide information to client duty means

Answer 11

Financial Advice, financial planning

Question 12

Communicating with client duty means

Answer 12

reasonable, expected to understand, avoid complexity

Question 13

Compensation representation duty means

Answer 13

Fee Only, Fee Based, Sales related compensation, Soft dollars, non monetary benefits, related party

Question 14

Recommending, Engaging and working with multiple persons duty means

Answer 14

Reasonable basis, Reputation, experience, qualifications, disclosure, reasonable care

Question 15

Selecting and Using Technology duty means

Answer 15

Reasonable care and judgement, Level of understanding

Question 16

Refrain from borrowing or lending money and commingling

Answer 16

Commingle, client assets, borrow, lend

Question 17

What are the practice standards?

Answer 17

1. Understanding the Client’s personal and financial circumstances
2. Identify and Select goals
   3.analyze current course of action and recommend alternatives
3. Develop financial planning recommendations
   5.Present the financial planning recommendations
4. implement recommendations
5. monitor recommendations

Question 18

Definition of financial planning

Answer 18

a collaborative process that helps maximize a clients potential by meeting life goals through financial advice that integrates elements through personal and financial circumstances