Process and Standards

Question 1

A promotion in the same company without a salary change. Should life insurance be re-analyzed?

Answer 1

No

Question 2

Within how many days must a relevant misdemeanor be reported to the CFP board?

Answer 2

30 calendar days

Question 3

True or false: a certificant may not loan money to clients or borrow money unless they are in the business of lending.

Answer 3

True.

Question 4

After understanding a client’s personal financial situation through data gathering, what is the next step in the process?

Answer 4

Identify goals.

Question 5

Seven steps of financial planning process

Answer 5

Understand circumstances, Identify goals, Analyze current course of action, Develop, Present, Implement, Monitor. (UIADPIM)

Question 6

To uphold the fiduciary standard, a CFP is required to fulfill what three duties

Answer 6

Duty of loyalty, Duty of Care, Duty to follow client instructions.

Question 7

Integrity, Competence, Confidentiality, Privacy

Answer 7

Code and Standards

Question 8

6 Principles of the Code of Ethics

Answer 8

• Honesty, integrity, competence, confidentiality, diligence
• client’s best interest
• due care
• avoid, disclose, manage conflicts of interest
• reflect positively on profession.