Code of Ethics

Question 1

Code of Ethics: Six Principles

Answer 1

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

Question 2

CFP Standards: Six Sections

Answer 2

1. Duties Owed to Clients
2. Financial Planning and Application of the Practice Standards for the Financial Planning Process
3. Practice Standards for the Financial Planning Process
4. Duties Owed to Firms and Subordinates
5. Duties Owed to CFP Board
6. Prohibition on Circumvention

Question 3

Duties Owed to Clients

Answer 3

1. Fiduciary: Loyalty, Care, Follow Instructions
2. Integrity: honesty and candor
3. Competence: acquire, outsource, or limit
4. Diligence: timely and thorough
5. Disclose/Mg Conflicts
6. Sound and Objective Judgment: no gifts/comp
7. Professionalism
8. Comply with Law
9. Confid. and Privacy
10. Provide info to client: understandable format
11. When providing info: accurate and underst.
12. Duties when representing comp
13. Duties when recomm, engaging w/, working w/ additional persons
14. Duties when selecting, recomm. tech
15. Refrain from borrowing from client

Question 4

Financial Planning Process: Seven Steps

Answer 4

1. Understanding the Personal and Financial Circumstances
2. Identifying and Selecting Goals
3. Analyzing Current and Potential Alternative Course(s) of Action
4. Developing Recommendation(s)
5. Presenting Recommendation(s)
6. Implementing Recommendation(s)
7. Monitoring Progress and Updating

Question 5

Duties to Board (5)

Answer 5

1. Avoid adverse conduct
2. Report adverse conduct to Board within 30 days
3. Provide narrative statement to Board on reportable matters
4. Cooperate with Board throughout investigations and disciplinary proceedings
5. Comply with the Terms and Conditions of Certification and License

Question 6

Use of CFP® (5)

Answer 6

1. ALL CAPS
2. No periods
3. Always use ®
4. Unless following name, use approved noun:
   
   1. certificant
   2. profes­sional
   3. practitioner
   4. certification
   5. mark
   6. exam
5. Associate with practitioner certified by Board

Question 7

Use of CERTIFIED FINANCIAL PLANNER™ (4)

Answer 7

1. ALL CAPS or small caps
2. Always use ™
3. Unless following name, use approved noun:
   
   1. certificant
   2. profes­sional
   3. practitioner
   4. certification
   5. mark
   6. exam
4. Associate with practitioner certified by Board