Code of Ethics and Standards of Conduct

Question 1

Fiduciary Duty (Standard A.1)

Answer 1

Act in best interest of the client. Bye…

• Duty of Loyalty
  *Duty of Care
  *Duty to follow client instructions

Question 2

Integrity (Standard A.2)

Answer 2

Honesty and Candor

Question 3

Competence (Standard A.3)

Answer 3

Relevant knowledge and skill to apply knowledge. Understand what to do in absence of competence.

Question 4

Diligence (Standard A.4)

Answer 4

Professional service. Respond to REASONABLE client inquiries.

Question 5

Under which Duty (Standard A.1) is a CFP pro required to avoid conflicts of interest or fully disclosue material conflicts of interest to the client?

Answer 5

The ‘Duty of Loyalty’ requires CFP® professionals providing Financial Advice to “[a]void Conflicts of Interest, or fully disclose Material Conflicts of Interest to the Client, obtain the Client’s informed consent, and properly manage the conflict.”

Question 6

Standard A.12

Answer 6

Sales related compensation…
*Commissions
*12b-1 Fees
*Spreads
*Transaction Fees
*Revenue Sharing
*Referrals, Soliciting