Module 1 -- Financial Planning Process

Question 1

Which of the seven steps of the financial planning process follows the development of the financial planning recommendations?

Answer 1

Presenting the financial planning recommendations.

Question 2

All of the following are Standards of Professional Conduct in the FPQP Code of Ethics except?

Answer 2

Diligence

Question 3

When examining retirement plan issues, which are the least likely to be considered?

Answer 3

Debt ratios

Question 4

Diligence

Answer 4

Respond to reasonable client inquiries in a timely manner.

Question 5

Integrity

Answer 5

Provide professional services with integrity, honor fairness, and dignity, and maintain client truth and confidence.

Question 6

Competence

Answer 6

maintain an adequate level of knowledge and skill, and effectively apply that knowledge while recognizing its limitations

Question 7

Confidentiality

Answer 7

Keep client information confidential, disclosing only when authorized or compelled by law.

Question 8

Fiduciary duty

Answer 8

At all times when providing financial advice to a client, act as a fiduciary. This includes a duty of loyalty that involves placing the best interests of the client above your interests or your firm’s interests, and avoiding conflicts of interest.

Question 9

The FPQP Code of Ethics requires compliance with all of the following components.

Answer 9

self-disclosure of prior allegations or violations
adherence to the Standards of Professional Conduct
adherence to the terms and conditions

Question 10

Reasons people do not engage in financial planning

Answer 10

They procrastinate, feeling there is ample time to plan for their futures.
They may be fearful of what the planning process will uncover.
They believe the fees will be significant.

Question 11

This often occurs when developing planning recommendations?

Answer 11

Consideration of the economic environment and financial resources.