Module 6 Flashcards
Select the categories of conduct defined in the Fitness Standards.
- Conduct Deemed a Temporary Bar
- Conduct Deemed a Presumptive Bar
- Conduct Deemed Unacceptable
- Conduct Deemed Adverse
II and III
Per the Fitness Standards, an individual is eligible to submit a petition for consideration after having engaged in any of the following categories of conduct except
A)
revocation or suspension of a non-financial professional.
B)
suspension of a financial professional license.
C)
two or more personal or business bankruptcies.
D)
felony conviction for theft, embezzlement or other financially-based crimes.
D felony conviction for theft, embezzlement or other financially-based crimes.
The Code of Ethics is composed of ____ principles.
6
Identify the day counting rules that apply when the Procedural Rules state a time in calendar days.
- Exclude the day of the event that triggers the period
- Include the day of the event that triggers the period
- Count every day, excluding intervening Saturdays, Sundays, and federal legal holidays
- . Include the last day of the period, but if the last day is a Saturday, Sunday, or federal legal holiday, the period continues to run until the end of the next day that is not a Saturday, Sunday, or federal legal holiday
I and IV
In order to proceed with a petition for reinstatement, a Respondent must have completed all of the following except
A)
completed a CFP Board verified Ethics continuing education (CE) course.
B)
paid the reinstatement fee and any outstanding costs owed to CFP Board.
C)
completed the suspension.
D)
provided a written certification that the Respondent has read, understands, and will comply with the Code and Standards.
A)
completed a CFP Board verified Ethics continuing education (CE) course.
Choose the Code of Ethics principle that a CFP® professional is following by making clients aware of any arrangement by which someone who is not the client will compensate or provide some other material economic benefit to the planner, firm, or a related party.
A)
Maintain the confidentiality and protect the privacy of client information.
B)
Exercise due care.
C)
Avoid or disclose and manage conflicts of interest.
D)
Act with honesty, integrity, competence, and diligence.
C)
Avoid or disclose and manage conflicts of interest.
Madison, a CFP® professional, offers financial planning services to high net worth clients in her Registered Independent Advisory firm. Which of the services that Madison provides is considered a relevant element of financial planning according to the CFP Board Code and Standards?
A) Maintain confidentiality and privacy B) Avoid or disclose and manage conflicts of interest C) Manage assets and liabilities D) Uphold fiduciary duty when providing Financial Advice
C)
Manage assets and liabilities
Athena, a CFP® professional, offers financial planning services to high net worth clients in her Registered Independent Advisory firm. Select the services that Athena provides that are considered relevant elements of financial planning according to CFP Board’s Code and Standards.
- Managing cash flow
- Developing client goals
- Preserving or increasing wealth
- Providing for educational needs
1,2,3, & 4
Armaan, a CFP® professional, offers financial planning services to ultra-high net worth clients in his Registered Independent Advisory firm. Select the services Armaan provides that are considered relevant elements of financial planning, according to CFP Board’s Code and Standards.
- Achieving financial security
- Identifying tax considerations
- Providing high returns on investments
- Addressing estate and legacy matters
1, 2, 3
Which of the following is presumed to be unacceptable and thus bar certification unless the Disciplinary and Ethics Commission reconsiders and makes a different determination after a review?
A) Felony conviction for embezzlement B) Felony conviction for tax fraud C) Felony conviction for rape D) Felony conviction for nonviolent crimes within the past five years
D)
Felony conviction for nonviolent crimes within the past five years
The Code of Ethics is composed of six __________.
A) Standards. B) Guidelines. C) principles. D) rules of conduct.
C)
principles.
Select the subsections included in Standard A.1, Fiduciary Duty.
- Duty of Care
- Duty of Confidentiality
- Duty to Keep Current
- Duty of Loyalty
1 & 4
According to the CFP Board Code and Standards, which of the following is considered a relevant element of financial planning?
A) Achieve financial security B) Clear and understandable Client communications C) Collaborate to prioritize goals D) Use of Form ADV, Part 2
A)
Achieve financial security
Select the option that is NOT available to the Discipline and Ethics Commission (DEC) when reviewing the Hearing Panel’s findings and recommendations.
A) Deny B) Reject C) Modify D) Accept
A)
Deny
Select the Code of Ethics principle that a CFP® professional is following by acting with 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.
A)
Act in a manner that reflects positively on the financial planning profession and CFP® certification.
B)
Act with honesty, integrity, competence, and diligence.
C)
Exercise due care.
D)
Avoid or disclose and manage conflicts of interest.
C)
Exercise due care.
Select the information that CFP Board is permitted to publish if public discipline is imposed.
- Confidential information relevant to the discipline
- Names of family members of the Respondent
- Name of the Respondent
- Form of Discipline
1, 3, & 4
Select the requirements defined in Step 7 (Monitoring Progress and Updating) of Practice Standards for the Financial Planning Process.
- Address monitoring and updating responsibilities
- Monitor the client’s progress
- Obtain current qualitative and quantitative information
- Update goals, recommendations, or implementation decisions
All above
Identify steps included in CFP Board’s Practice Standards for the Financial Planning Process.
- Monitoring and Updating
- Identifying and Selecting Goals
- Establishing and Defining the Client-Planner Relationship
- Developing the Financial Planning Recommendation(s)
1, 2, & 4
Select the exception(s) to the Confidentiality and Privacy guidelines (Standard A.9) of the Standards of Conduct.
Information used for ordinary business purposes (e.g., personal information necessary for an estate planning attorney to draft a will)
Information transferred for legal and compliance purposes (e.g., subpoenas)
Both
All of these statements comprise the Fiduciary Duty, Duty of Loyalty, except
A)
act without regard to the financial or other interests of the CFP® professional, the CFP® Professional’s Firm, or any individual or entity other than the Client.
B)
avoid Conflicts of Interest, or fully disclose Material Conflicts of Interest to the Client, obtain the Client’s informed consent, and properly manage the conflict.
C)
place the interests of the Client above the interests of the CFP® professional and the CFP® Professional’s Firm.
D)
act with the care, skill, prudence, and diligence that a prudent professional would exercise.
D)
act with the care, skill, prudence, and diligence that a prudent professional would exercise.
By being competent enough to give advice, even if they delegate or consult with others, CFP® professionals are fulfilling
A) the Duty to CFP Board. B) the Duty of Care. C) the Duty to Follow Client’s Instructions. D) the Duty of Loyalty.
B)
the Duty of Care.
Identify the item that would NOT be viewed as Financial Advice according to the Code of Ethics and Standards of Conduct.
A)
The exercise of discretionary authority over the Financial Assets of a Client
B)
The selection and retention of other persons to provide financial or Professional Services
C)
A communication that, based on its content, context, and presentation, would not reasonably be viewed as a recommendation
D)
The development or implementation of a Financial Plan
C)
A communication that, based on its content, context, and presentation, would not reasonably be viewed as a recommendation
Select the sanction that is an unpublished written reproach of the Respondent that the Discipline and Ethics Commission (DEC) delivers to a censured Respondent.
A) Temporary Bar B) Public Censure C) Suspension D) Private Censure
D)
Private Censure
Which of these is NOT an acceptable compensation method to disclose to clients according to the Duties When Representing Compensation Method (Standard A.12)?
A) Fee-Based B) Fee-Only C) Commission-Based D) Sales-Related
C)
Commission-Based
