Intro to Ethics and Standards Flashcards
What are the learning objectives for the CFT-I™ ethics and standards education?
Participants will be able to:
* Understand the purpose of CFT-I™ certification and FTA’s core values
* Identify the concepts within the FTA Standards of Practice and Code of Ethics
* Define “fiduciary standard” and “suitability standard”
* Identify why it is important for a CFT-I™ to act as a fiduciary
* Define the term “scope of practice”
* Outline scope of practice parameters for CFT-I™ practitioners
* Understand the appropriate use of the CFT-I™ marks
What are some disclaimers to keep in mind regarding financial therapy and CFT-I™ certification?
Financial therapy is a newer, growing discipline that is constantly evolving. Practitioners must abide by federal and state regulatory laws applicable to their discipline and ethical codes. Consumption of the CFT-I Video Education Series content does not equate to eligibility for the CFT-I Certification Exam.
What are the three core competency areas that the CFT-I™ Level I certification focuses on?
The three core competency areas are:
* Financial competence
* Mental health and therapeutic competence
* Financial therapy competence
What does the CFT-I™ certification require in terms of client-facing experience?
A total of 500 experience hours:
* 250 direct client hours
* 250 hours from other professional experiences and activities
What is the primary purpose of a code of ethics for any profession?
To establish norms and expectations for practitioners to minimize the risk of harm to clients and the general public.
According to Sullivan (2009), what are ethics in counseling and therapy?
Ethics are a set of behaviors based on socially accepted standards of what is considered right and wrong, consisting of rules of conduct that are morally and legally acceptable.
What did the FTA Board of Directors establish in 2017?
The first iteration of the FTA Standards of Practice and Code of Ethics.
What are the sections included in the FTA Standards of Practice & Code of Ethics?
Sections include:
* Responsibilities to Clients
* Confidentiality
* Professional Responsibility
* Compensation/Fees
* Evaluation and Assessment
* Responsibilities in Teaching, Training, and Supervision
* Research and Publication
* Technology
* Resolving Ethical Issues
What does the fiduciary standard stipulated by the Investment Advisors Act of 1940 entail?
A duty of loyalty and care, meaning the advisor must put their client’s interests above their own.
According to FINRA.org, what is the basis of the suitability standard?
A firm or associated person must have a reasonable basis to believe a recommended transaction or investment strategy is suitable for the customer, based on their investment profile.
What is the FTA’s current stance on the standard of practice for CFT-I™ holders?
CFT-I™ holders must adhere to a fiduciary standard of practice, doing what is in the client’s best interest and meeting the ‘fee-only fiduciary’ definitions set forth by NAPFA and CFP Board.
Why has the FTA adopted the fiduciary standard for CFT-I™ practitioners?
To uphold the ‘do no harm’ ethical expectation and protect clients from potential harm due to the emotional nature of financial therapy.
What are some things to consider to stay within your scope of practice as a CFT-I™?
Considerations include:
* Being upfront about services provided
* Discussing limitations of services
* Identifying your role and boundaries
* Collaborating or offering referrals if issues exceed your scope
* Outlining your scope of practice in a written document
What are some key questions to ask if you are uncertain about whether you are within your scope of practice?
Key questions include:
* Are you in compliance with the FTA Standards of Practice and Code of Ethics?
* Are the services aligned with Level I education and training for a Certified Financial Therapist?
* Are the services compliant with applicable laws?
* Are the techniques supported by relevant research?
* Do you possess the required knowledge and competency?
* Are you prepared to assume accountability for the outcome?
How must financial therapists accurately represent their services and CFT-I™ certification?
Advertising must be accurate, certification must not be misrepresented, and terms ‘CFT’ or ‘Certified Financial Therapist’ must be followed by the fully attained level of certification, including the trademark symbol, ™.
Where can you find more information about CFT-I™ certification and the FTA Standards of Practice?
Visit:
* www.financialtherapyassociation.org/certification
* www.financialtherapyassociation.org/fta-practice-standards
What does the Latin phrase ‘primum non nocere’ mean and why is it relevant to financial therapy?
It means ‘first, do no harm.’ This is the fundamental ethical principle that guides financial therapists, emphasizing that the primary duty is to avoid causing harm to clients.
What is the primary purpose of the FTA’s Code of Ethics?
To establish norms and expectations for practitioners in order to collectively minimize the risk of harm to clients and the general public.
Define ethics in the context of financial therapy.
Ethics in financial therapy are a set of behaviors based on socially accepted standards of what is considered right and wrong; rules of conduct that are considered morally and legally acceptable.
What is the relationship between ethics and the professionalization of financial therapy?
Creating a code of ethics is a critical step in furthering the professionalization of financial therapy, similar to how other now highly-professionalized practice areas developed in their early stages.
What are the five core values of the Financial Therapy Association?
- Evidence-based research as a foundation for practice
- Knowledge across multiple disciplines
- Consumer-facing profession
- Fee-only fiduciary standard
- Education available to all professionals
How does the FTA demonstrate its commitment to evidence-based research?
The FTA sponsors the Journal of Financial Therapy and includes a research component within the Level 1 education series.
What are the three core competency areas of the Level 1 certification?
- Financial competence
- Mental health and therapeutic competence
- Financial therapy competence
What experience is required for obtaining CFT-1 certification?
500 total hours, with 250 direct client hours and 250 hours of other professional experiences and activities.
What is the fiduciary standard in financial therapy?
The fiduciary standard requires professionals to put their clients’ interests above their own and recommend what is in the clients’ best interest at all times.
How does the fiduciary standard differ from the suitability standard?
The fiduciary standard requires putting the client’s interests first, while the suitability standard only requires recommendations to be ‘suitable’ for the client but does not require putting the client’s interests above the professional’s.
Why has the FTA adopted the fee-only fiduciary standard for CFT certification?
Because financial therapy creates a natural vulnerability for consumers, and the fee-only fiduciary standard is the best mechanism available to uphold the ‘do no harm’ ethical standard and protect consumers.
What historical act established the fiduciary standard?
The United States’ Investment Advisors Act of 1940.
Define ‘scope of practice’ in financial therapy.
Scope of practice describes the actions that a practitioner is permitted to take while staying within the boundaries of one’s education, licensure, certification, or training.
What should CFT-1 practitioners do if they determine a client is outside their scope of practice?
They should avoid entering or immediately terminate the service relationship and respectfully offer more appropriate referrals.
How should a CFT-1 communicate their scope of practice to clients?
It should be outlined in a written document and reviewed verbally with clients during the informed consent process before beginning sessions.
What are appropriate actions for a CFT-1 when a client’s issues push outside their scope?
- Consider bringing in a collaborator with expertise
- Offer referrals to trusted professionals equipped to handle the identified issues
What does the CFT-1 certification certify?
It certifies that a professional has gained a basic level of competence across various financial, therapeutic, and financial therapy-specific knowledge areas.
What does the CFT-1 certification NOT certify?
It does NOT certify that someone is ‘fully competent to practice financial therapy.’ It does NOT give mental health professionals the ability to practice financial planning, nor does it qualify financial professionals to do mental health therapy or diagnose conditions.
How does the CFT-1 certification supplement a professional’s home discipline?
It broadens their foundational knowledge across financial, therapeutic, and financial therapy-specific topics to enhance or elevate their work in their primary discipline.
Why is the concept of a ‘home discipline’ important for CFT-1 practitioners?
Because the CFT-1 is a supplemental certification meant to enhance one’s primary work, and practitioners must follow the ethical standards and legal requirements of their home discipline.
How should the CFT-1 mark be correctly represented?
As ‘CFT-1™’ or ‘Certified Financial Therapist-1™’ with the trademark symbol included.
What is prohibited regarding the use of the CFT mark?
The ‘CFT’ or ‘Certified Financial Therapist’ must never be used unaccompanied without the level designation (e.g., ‘-1’).
Why is proper signaling of the CFT-1 mark important?
For maintaining appropriate scope of practice, protection of consumers, and accurate representation of one’s qualifications.
What should CFT-1 practitioners do if they notice misrepresentations of their credentials?
They must correct any known misrepresentations of their credentials by others.
A mental health therapist with CFT-1 credential is asked by clients to create a comprehensive investment plan. What should they do?
They should explain this is outside their scope of practice as a CFT-1 and refer the clients to a qualified financial planner, as the CFT-1 does not qualify them to practice financial planning.
A financial planner with CFT-1 credential notices a client showing signs of serious depression during discussions about retirement. What is the appropriate action?
Recognize this is outside their scope of practice as a CFT-1, express appropriate concern, and provide a referral to a qualified mental health professional.
You’re a CFT-1 working with a couple experiencing high conflict about money. You notice potential signs of financial abuse. What factors should you consider in determining your scope?
- Consider your home discipline training
- Your ability to address relationship conflict
- Whether there are safety concerns
- Whether you have the expertise to address potential abuse dynamics
As a CFT-1, how should you evaluate whether providing a particular service is within your scope?
- Am I complying with FTA Standards?
- Is this within Level 1 training?
- Do I have the required knowledge and competency?
- Is it supported by research?
- Am I complying with applicable laws?
- Am I prepared to assume accountability?
How many levels of certification are planned in the FTA certification structure?
Three levels: Level 1, Level 2, and Level 3.
Why did the FTA create a multi-level certification structure?
To accommodate the complexity of the developing field and the varied backgrounds of those entering financial therapy education.
How does the CFT-1 fit into the broader certification structure?
The CFT-1 represents the most basic building blocks from which to learn about financial therapy, providing a foundational level of knowledge.
How should a professional think about their advancement through CFT certification levels?
As advancing along a ruler, with expertise, knowledge, skills, and scope expanding as their level advances in certification, allowing them to venture further into integrated practice.
What should a CFT-1 do if uncertain whether a particular situation falls within their scope of practice?
They should evaluate the six key questions regarding compliance with standards, alignment with training, legal compliance, research support, required knowledge, and accountability.
What ethical obligations do CFT-1 practitioners have regarding advertising and marketing?
They must accurately represent their services and certification, not misrepresent their credentials, and include the appropriate trademark symbol with the CFT-1 designation.
How does the ‘do no harm’ principle apply specifically to financial therapy?
Financial therapists must act to avoid intentionally harming clients, trainees, and research participants, and take steps to mitigate harm should it occur.
What ethical principles govern a CFT-1’s responsibilities to clients?
- Do no harm
- Act as a fiduciary
- Safeguard welfare and rights of clients
- Maintain appropriate boundaries
- Stay within scope of practice
