LO 1.1.3: Evaluate a scenario based on six principles of the CFP Board’s Code of Ethics to determine if there are violations.

Question 1

What are the Six Principles of the CFP Board Code of Ethics

Answer 1

• 1. Act with honesty, integrity, competence, and diligence.
• 2. Act in the client’s best interest.
• 3. Exercise due care.
• 4. Avoid or disclose and manage conflicts of interest.
• 5. Maintain the confidentiality and protect the privacy of client information.
• 6. Act in a manner that reflects positively on the financial planning profession, and the CFP Certification.

Question 2

What is the 1st principle of the CFP Board Code of Ethics

Answer 2

Act of honesty, integrity, competence, and diligence.

Question 3

What is the 2nd principle of the CFP Board Code of Ethics

Answer 3

Act in the client’s best interest.

Question 4

What is the 3rd principle of the CFP Board Code of Ethics

Answer 4

Exercise due care.

Question 5

What is the 4th principle of the CFP Board Code of Ethics

Answer 5

Avoid or disclose and manage conflicts of interest.

Question 6

What is the 5th principle of the CFP Board Code of Ethics

Answer 6

Maintain the confidentiality and protect the privacy of client information.

Question 7

What is the 6th principle of the CFP Board Code of Ethics

Answer 7

Act in a manner that reflects positively on the financial planning profession, and the CFP Certification.

Question 8

As a CFP pro, what guidelines must be upheld in all instances and encounters

Answer 8

Code of Ethics and Standards of Conduct.

Question 9

What is the Disciplinary and Ethics Commission (DEC)

Answer 9

responsible for investigating, reviewing, considering recommendations, and issuing a final decision on CFP certificates who violate Code and Standards.