Ethics, Law, & Code of Ethics

Question 1

Candidate Fitness Standards that will ALWAYS bar an individual from becoming a CFP

Answer 1

Felony conviction for theft, embezzlement or other financially based crimes.
- Felony conviction for tax fraud or other tax-related crimes.
- Revocation of a financial professional (registered securities representative, broker/dealer, insurance, accountant, investment advisor, financial planner) license, unless the revocation is administrative in nature. (Example of administrative revocation: the result of the individual determining not to renew the license by not paying the required fees.)
- Felony conviction for any degree of murder or rape.
- Felony conviction for any other violent crime within the last five years

Question 1

Duties owed to clients

Answer 1

Integrity
Fiduciary Duty
Competence
Diligence
Disclose and Manage Conflicts of Interest
Sound and Objective Professional Judgment
Professionalism
Comply with the Law
Comply with the Law

Question 2

Candidate Fitness Standard that is deemed a presumptive bar and is PRESUMED to be un acceptable

Answer 2

-Two or more personal or business bankruptcies.
- Revocation or suspension of a nonfinancial professional (real estate, attorney) license, unless the revocation is administrative in nature.
- Suspension of a financial professional (registered securities representative, broker/dealer, insurance, accountant, investment advisor, financial planner) license, unless the suspension is administrative in nature.
- Felony conviction for nonviolent crimes (including perjury) within the last five years. - Felony conviction for violent crimes other than murder or rape that occurred more than five years ago.

Question 3

Candidate Fitness Standards - Who to report to after 1 Bankruptcy

Answer 3

One Bankruptcy
- Report to CFP Board within 30 calendar days
- Report to Clients within 90 days (Includes webpages with relevant info, for ex: CFP.net, FINRA Broker Check)
- Choose between: 1) Accept a public

Question 4

Candidate Fitness Standards - Who to report to after 2 Bankruptcies

Answer 4

Same a 1

• Report to CFP Board within 30 calendar days
• Report to Clients within 90 days (Includes webpages with relevant info, for ex: CFP.net, FINRA Broker Check)
• Choose between: 1) Accept a public

Question 5

Candidate Fitness Standards - Adjudication after 1 Bankruptcy

Answer 5

Choose:
1. Accept a pubic censure with-out incurring a hearing fee, or
2. Pay a hearing fee and follow a streamlined adjudication proce-dure.

Question 6

Candidate Fitness Standards - Adjudication after 2 Bankruptcies

Answer 6

Follow normal disciplinary procedure for adjudicating com-plaints.