MODULE 3: PROFESSIONAL OBLIGATIONS & RESPONSIBILITIES

Question 1

CONFLICT OF INTEREST

Answer 1

Occurs when an individual has personal interests that may improperly influence their professional judgement. A planner may receive a direct or indirect benefit.

Question 2

DIRECT BENEFIT

Answer 2

Planner receives the benefit personally.

Question 3

INDIRECT BENEFIT

Answer 3

A family member, friend, or business associate of the planner benefits.

Question 4

CONFLICT OF OBLIGATION

Answer 4

When an individual fails to meet the expected standard of professional conduct as it applies to the protection of first, second, and third party interests.

Question 5

FIRST PARTY INTERESTS

Answer 5

Interests of the profession and professional colleagues.

Question 6

SECOND PARTY INTERESTS

Answer 6

Interests of the client or employer.

Question 7

THIRD PARTY INTERESTS

Answer 7

Interests of the public.

Question 8

TYPES OF CONFLICTS OF INTEREST (ARMS + BUGS)

Answer 8

1. Acceptance of Gifts
2. Representing Both Parties
3. Moon-lighting
4. Self-Dealing
5. By Matter of Record
6. Use of Proprietary and Confidential Information
7. Gaining Private Advantage From The Use of Your Employer’s Resources
8. Selling Influence

Question 9

CONFLICTS OF OBLIGATION (PROFESSIONAL TO COLLEAGUES)

HFLC

Answer 9

1. Honesty
2. Fairness
3. Loyalty
4. Competence

Question 10

CONFLICTS OF OBLIGATION (PROFESSIONAL TO CLIENT OR EMPLOYER)

FOLD + CDHC

Answer 10

1. Fairness
2. Obedience
3. Loyalty
4. Diligence
5. Candor
6. Discretion
7. Honesty
8. Competence

Question 11

CONFLICTS OF OBLIGATION (PROFESSIONAL TO THIRD PARTIES)

HFN

Answer 11

1. Honesty
2. Fairness
3. Non-Malfeasance

Question 12

THREE WAYS TO DEAL WITH CONFLICT OF INTEREST

Answer 12

1. Avoidance
2. Disclosure
3. Post-Disclosure