Gen Pr: Cfp Board

Question 1

Fitness standards
For those wanting to become certified
Conduct deemed unacceptable
Will always bar!!

Answer 1

Unacceptable. Will always bar
-revocation of a financial license
-felony **murder or rape
-felony fraud, theft,** other financial crimes
-felony tax fraud or other financial crimes
-ANY other felonies within the last 5 years

Question 2

Fitness standards
Other adverse conduct
This is for those who want to become certified

Answer 2

-Arbitration or other civil proceeding
-Customer complaints
Misdemeanors - relevant
-Employer investigations and termination

Question 3

Fitness standards
Conduct deemed presumptive bar

Answer 3

-2 or more personal or business bankruptcies
-suspension of financial license
-revocation or suspension of non-financial license
-felony non violent w/i last 5
- PERJURY (?w/i last 5 years)
- violent felony more than 5 years , other than murder or rape

Question 4

Duties, in general

Answer 4

To Clients
To Firms & Subordinates
To CFP board

Question 5

Duties at all times

Answer 5

integrity
competence
diligence
sound & obj prof judgment
professionalism
comply with law
confidentiality and privacy
communicating with client, representing compensation method, selecting using , rec technology
refrain from borrowing or lending money AND comingling financial assets

Question 6

Duties to clients: FA

Answer 6

At all times PLUS
FIDUCIARY
Disclose and manage CONFLICTS of INTEREST
Provide INFORMATION to a client
Duties when recommending, engaging and working with ADDITIONAL persons

Question 7

Duties to clients: FP

Answer 7

AAT + FA plus
practice standards (UIADPIM)
Information to client in WRITING

Question 8

Duties to Firms & Subordinates

Answer 8

reasonable care when SUPERVISING
comply with LAWFUL objectives of FIRM
Provide notice of PUBLIC DISCIPLINE

Question 9

Duties to CFP Board

Answer 9

refrain from ADVERSE CONDUCT
Reporting
Provide NARRATIVE STMNT
Cooperation
Compliance with Terms & Conditions of CERTIFICATION and TM license

Question 10

Fiduciary Duty: in general
name the 3

Answer 10

Duty of Loyalty
Duty of Care
Duty to follow client instructions

Question 11

Duty of Loyalty

Answer 11

-interests of client > cfp or firm
-avoid CONFLICTS of interest OR fully DISCLOSE and manage and obtain client CONSENT (oral or written)
-act w/o regard to interests of self, firm or any other ind or entity

Question 12

Duty of Care

Answer 12

act with the
care, skill, prudence & diligence that a prudent fin prof would exercise in light of client’s
goals, risk tol, obj & fin and pers circumstances

Question 13

Duty to Follow Client instructions

Answer 13

Must COMPLY with the TERMS of the client engagement AND follow all directions of the client that are reasonable and lawful

Question 14

What is Financial advice

Answer 14

reasonably viewed as a RECOMMENDATION that the client take or refrain from taking a particular course of action with respect to…
see board but generally fin matters

Question 15

What is NOT financial advice

Answer 15

a communication that would not be viewed as a mere RECOMMENDATION such as
-response to directed order
- mktg materials
-general financial education and communications

the more individually tailored the more likely it is viewed as financial advice

Question 16

Financial planning

Answer 16

a COLLABORATIVE process
did you agree to or actually provide FP?
Does the FA require integration of relevant elements (see sep card)
does the client have reasonable basis to believe that you provided FP

Question 17

Financial planning integration considerations

Answer 17

Integration factors
-number of relevant elements
- portion and amount of fin assets
- length of time affected
-effect on client’s overall exposure to risk if implemented
-barriers to modifying actions taken to implement the FP

Question 18

What if client does not agree to FP

Answer 18

• not enter into
• limit scope and describe what you will not be performing
  -provide req services after informing how FP will benefit ..
  -terminate the engagement

Question 19

Step 1 Practice standards

Answer 19

Understanding the clients pers & Financial
Obtain qualitative and quantitave (also in step 7)

Question 20

When to document

Answer 20

significance of information
need to preseve in writing
obligation to act in best interest
firms policies & procedures

Question 21

How to document

Answer 21

Options do include
CRM software
handwritten note
emails

Question 22

Duty to provide information - FA

Answer 22

PRIVACY in writing
rest oral or written
material conflicts of interest
services and products
how compensated
public discipline & bankruptcy
referral comp arrangements
other material info

Question 23

Duty to provide info - FP

Answer 23

Material conflicts of interest can be oral but written preferred
MUST be in writing:
P - PRIVACY policy
P - Products and services
P How the client pays
C How you, firm, related parties compensation
PDB public disciple & bankruptcy
T terms of engagement (imp, monitor, updated required unless explicitly excluded)
Other material info

Question 24

Terms of engagement

Answer 24

Must include
IMPLEMENTING, MONITORING, and UPDATING unless explicitly excluded (like @ Highland)

Question 25

Failure to answer a board complaint OR pay hearing fee (unless waiver)
Who delivers
What are the two options

Answer 25

Who. CFP board counsel
What?
suspension for a year and a day
OR
Revocation

Question 26

Number of days to answer the board

Answer 26

30 days
Settlement review fee
Witness list
File appeal to BOD appeals committee

45 days
Hearing documents, written statements, and stipulations

Question 27

Forms of discipline
And timeframe for the suspension

Answer 27

Private censure. Written unpublished mailed

Public letter of admonition written and published in a press release

Suspension
minimum 90 days maximum 5 years
prohibited from using the marks or suggesting you are cfp

Revocation and permanent bar

Question 28

Six approved nouns

Answer 28

Professional
Practitioner
Certificant
Certification
Mark
Exam
Cfp with the r
Or certified financial planner in small caps with the TM

Question 29

Legal tagline must be used when

Answer 29