Module 6

Question 1

Appeals Committee

Answer 1

The Appeals Committee is composed primarily of CFP Professionals and has the authority to issue CFP Board’s final decision.

Question 2

Financial Planning

Answer 2

A collaborative process that helps maximize a client’s potential for meeting life goals through financial advice that integrates relevant elements of the client’s personal and financial circumstances.

Question 3

duty of care

Answer 3

A CFP professional must act with the care, skill, prudence and diligence that a prudent professional would exercise in light of the client’s goals, risk tolerance, objectives, and financial and personal circumstances.

Question 4

duty of loyalty

Answer 4

A CFP professional must place the interest of the clients above the interests of the CFP professional and the CFP professional’s firm. A CFP professional also must avoid conflicts of interest, or fully disclose material conflicts of interest to the client, obtain the client’s informed consent and manage the conflict.

Question 5

duty to consult

Answer 5

The CFP has the duty to consult with others who have the specialized knowledge of the issue at hand.

Question 6

duty to diagnose

Answer 6

The CFP professional is obligated to know your customer and to investigate the suitability of any products recommended as investments.

Question 7

duty to disclose

Answer 7

A CFP professional must disclose all material facts and all conflicts of interest.

Question 8

Fitness Standards

Answer 8

Is the CFP’s Board of Fitness Standards- character and fitness standards for individuals seeking to obtain the CFP certification.

Question 9

integration factors

Answer 9

are variables that weigh in determining whether Financial Advice requires Financial Planning
-the number of relevant elements of the clients personal and financial circumstances that the Financial Advice may affect.
-the portion and amount of the client’s Financial Assets that the Financial Advice may affect.
-The length of time the client’s personal and financial circumstances may be affected by the Financial Advice.
-the effect of the client’s overall exposure to risk if the client implements the Financial Advice.
-The effect on the clients overall exposure to risk if the client implements the Financial Advice.
The barriers to modifying the actions taken to implement the Financial Advice.

Question 10

public censure

Answer 10

Is a published written reproach of the certificant’s behavior.

Question 11

revocation

Answer 11

is a permanent revocation of the right to use the CFP marks. This is a permanent denial of all rights associated with the use of the marks. Revocations are normally published.

Question 12

permanent bar

Answer 12

Is a permanent prohibition on the ability of a Respondent who currently is not a CFP professional to apply for or obtain CFP certification.

Question 13

private censure

Answer 13

Is unpublished written reproach of a respondent that the DEC delivers to a censured Respondent.

Question 14

temporary bar

Answer 14

Is a period of time in which a Respondent who currently is not a CFP professional is prohibited from applying for or obtaining CFP certification.

Question 15

suspension

Answer 15

Is a period of time in which Respondent remains subject to the Terms & Conditions of Certification and Trademark License but is not Certified or Licensed and is prohibited from using the CFP certification marks, stating or suggesting that Respondent is a CFP Professional.

Question 16

CFP Board Consule

Answer 16

It has the authority to investigate and issue a Compliant against a respondent for alleged violations of the code of ethics and standards of conduct , Code and Standards or by the CFP Certification Candidate Agreement.

Question 17

Hearing Panel

Answer 17

At least one member of every hearing panel is a member of the Disciplinary and Ethics Commision (DEC) and at least 2 members must be a CERTIFIED FINANCIAL PLANNER professionals.