Ethics

Question 1

Non credentialed members are not permitted to render opinions or advice to clients without a credentialed member in attendance
True
False

Answer 1

False
Non credentialed members with the appropriate training and experience may render opinions or advice to clients. The Code of Professional Conduct does not require that a member of erring opinions or advice be credentialed, but does require that the member perform professional services only when qualified based on education, training and experience

Question 2

A member hired by a client based on the recommendation of the client’s accountant, does not need to disclose that referral fees are also paid to the accountant
True
False

Answer 2

False
A member must make full and timely disclosure to a client of all sources of compensation that the member or members firm may receive in relation to an assignment for the client

Question 3

ARA Code of Professional Conduct muse be prominently displayed in the office of the ARA member
True
False

Answer 3

False
The code of Professional Conduct does not require the code to be displayed in a members office

Question 4

A member may not perform services for a client when there is a conflict of interest
True
False

Answer 4

False
A member may perform services involving an actual or potential conflict of interest if the following requirements are met:
the members ability to act fairly is unimpaired
there has been full disclosure of the conflict to the client
and the client has expressly agreed to the performance of the services by the member

Question 5

Which of the following would be a violation of the ARA Code of Professional Conduct?
a. A member discussed other client’s fees with a long standing client so that the client is assured that his fees are reasonable
b. A member who holds the appropriate securities license offers to meet with plan participants to explain the plan highlights and investment choices
c. A member discusses the plan sponsors responsibilities with the HR director
d. A member with the appropriate experience and training presents the advantages and disadvantages of different plan types to a prospective client

Answer 5

A member discussed other client’s fees with a long standing client so that the client is assured that his fees are reasonable

It is not appropriate to discuss another client’s fees with a current client. This would violate several sections of the Code of Conduct including the Professional Integrity and Confidentiality sections