Professional Conduct and Regulation (8%)

Question 1

Integrity (A.2)

Answer 1

Honesty and Candor

Question 2

Competence (A.3)

Answer 2

“…with relevant knowledge and skill to apply that knowledge”

Question 3

Digiligence (A.4)

Answer 3

“…must provide Porfessional Services, including responding to reasonable Client inquiries, in a timely and thorough manner.”

Question 4

Disclose and Manage Conflicts of Interest (A.5)

Answer 4

Applies to ‘Material Conflicts of Interest’ - written consent NOT required

Question 5

Sound and Objective Professional Judgment

Answer 5

“must exercise professional judgment on behalf of the Client and “may not solicit or accept any gift that could be expected to compromise objectivity”

Question 6

Professionalism

Answer 6

must treat otherswith dignity, courtesy, and respect

Question 7

Confidentiality & Privacy (A.9)

Answer 7

must keep confidential and may not disclose any non-public personal info

Question 8

Duties when communicating with a client

Answer 8

Accurate and understandable

Question 9

Borrowing or lending money with clients

Answer 9

Client’s financial assets may NOT be commingled with the CFP professionals assets or the Firm’s assets.

Question 10

Conduct Leading to Permanent bar (Max)

Answer 10

Any Financial Felony conviction
Any murder, rape, ever;
Violent Felony in last 5-years.

Question 10

7 Steps of the Financial Planning Process

Answer 10

Ukelele’s In A Divebar Playing Iron Maiden: Understanding Circumstances; Identifying Goals, Analyzing Actions; Developing Recommendations; Presenting Recommendations; Implementing; and Monitoring.

Question 11

Conduct Presumptive Bar (mid)

Answer 11

2+ BK’s,
Revocation of professional license (non-administrative);
Suspension of financial professional license;
Felony non-violent crime w/in 5-years;
Felony violent crime ever (not murder/rape)

Question 12

CFP Board Disciplinary Process

Answer 12

Board delivers complaing -> 30-days to respond. Hearing Documents -> Notice of Hearing (30-days before) -> Hearing before Panel -> Hearing Recommendations -> Disciplinary and Ethics Commissions (DEC) reviews recommendation -> DEC final order -> Appeal (w/in 30-days or final order)

Question 13

Forms of Discipline

Answer 13

Private Censure; Public Letter of Admonition; Suspension; Revocation