General Principles Chapter 1 & 2

Question 1

Financial Planning Process

Answer 1

1. Understanding Personal Circumstances
2. Identify Goals
3. Analyzing Client Current Course of Action & Alternatives
4. Develop Recommendations
5. Present Recommendations
6. Implement Recommendations
7. Monitor Progress

Question 2

When to Follow Process

Answer 2

1. when you agree/when there is an agreement in place
2. when you agree to give advice
3. when the client believes the cfp will provide info

Question 3

Eight Knowledge Categories

Answer 3

1. Professional Conduct
2. General Financial Planning Principles
3. Psychology of Financial Planning
4. Risk Management & Insurance Planning
5. Investment Planning
6. Tax Planning
7. Retirement Savings & Income Planning
8. Estate Planning

Question 4

Duties Owed to Clients

Answer 4

Duty of Loyalty, Care, Follow Client Instructions

Question 5

Standards

Answer 5

Integrity, Competence, Diligence, Disclose & Manage Conflicts of Interest, Sound and Objective Professional Judgement, Professionalism, Comply with Law, Confidentiality & Privacy, provide info to client (i.e. disciplinary action)

Question 6

SEC Regulation S-P

Answer 6

notice requirements on financial institutions ability to disclose info. aka - privacy policy