Name that Practice Standard

Question 1

Defines the scope of engagement between the CFP and the client, including:

• The services provided-Conflicts of interest
• Compensation
• Responsibilities of both parties
• Duration of Agreement
• Limits of the Scope of Engagement

Answer 1

Practice Standard 100

Defining the Scope of Engagement

Question 2

Refers to the CFP determining goals, needs, priorities, and responsibilities of the client

Answer 2

Practice Standard 200-1

Question 3

Refers to the obtaining of quantitative information and data

Answer 3

Practice Standard 200-2

Question 4

Refers to the analysis and evaluation of financial planning and uses the following assumptions:

• Client-specified
• Mutually agreed upon
• Other reasonable assumptions

Answer 4

Practice Standard 300

Analyzing and Evaluating

Question 5

Refers to the development and presentation of recommendations by identifying alternatives that:

• Consider multiple assumptions
• Are based on conducted research
• Are based on consultation with other individuals

Answer 5

Practice Standard 400-1

Identifying Alternatives

Question 6

Refers to the developments of a plan including:

• The analysis and/or evaluation incorporated into the plan
• The personal assumptions added (if necessary)

Answer 6

Practice Standard 400-2

Development of a Plan

Question 7

Refers to presenting recommendations based on the advantages and disadvantages, including:

• Risk
• Time Sensitivity

Answer 7

Practice Standard 400-3

Presenting Advantages and Disadvantages

Question 8

Refers to the implementation of recommendations based on the agreement of responsibilities, which include:

• The referral to other professionals
• Coordination with other professionals
• The sharing of information as authorized
• The selection and securing of products

Answer 8

Practice Standard 500-1

Agreeing on Responsibilities

Question 9

Refers to the selection of products and services, including:

• Suitability and client’s best interest
• Required Disclosures

Answer 9

Practice Standard 500-2

Selecting Products and Services

Question 10

Defines the monitoring of responsibilities

• What is to be monitored
• Frequency of monitoring

Answer 10

Practice Standard 600

Defining Monitoring Responsibilities