Rules of Conduct

Question 1

What are the rules of conduct?

Answer 1

• Establish the high standards expected of certificants and describe the level of professionalism required.
• Binding on all certificants, regardless of their title, position of type of employment method of compensation.

Question 2

1

Answer 2

Defining the relationship with the prospective client or client

Question 3

1.1

Answer 3

The certificant and the prospective client must mutually agree upon the services to be provided by the certificant.

Question 4

1.2

Answer 4

must discuss the:

• obligations and responsibilities of each party
• compensation
• terms for offering proprietary products
• terms under which the entity will use other entities

Question 5

1.3

Answer 5

the certificant and the certificants employer must enter into an agreement that specifies:

• the parties to the agreement
• the date of the agreement and its duration
• how and on what terms each party can terminate the agreement, and
• the services to be provided as part of the agreement

Question 6

1.4

Answer 6

The certificant shall at all times place the interests of the client ahead of their own. the certificant owes to the client the duty of care of a fiduciary as defined by the CFP board.

Question 7

2

Answer 7

Information disclosed to prospective clients and clients

Question 8

2.1

Answer 8

certificant shall not communicate any false or misleading information about the certificants professional qualifications or services.
certificant shall not mislead any parties about the potential benefits of the certificants service.
Certificant shall not fail to disclose or otherwise omit facts where that disclosure is necessary to avoid misleading clients.

Question 9

2.2

Answer 9

Certificant shall disclose the following:

• accurate and understandable description of compensation.
• A summary of likely conflicts of interests.
• any information about the certificant or their employer that may reasonably effect the clients decision to engage the certificant.
• contact information
• these disclosures must be in writing (form ADV satisfies this)

Question 10

3

Answer 10

Prospective client and client information and property

Question 11

3.1

Answer 11

certificant shall treat information as confidential

Question 12

3.2

Answer 12

take prudent steps to protect the security of information and property, including the security of stored information, whether physically or electronically, that is withing the certificants control.

Question 13

3.3

Answer 13

obtain information necessary to fulfill his or her obligations. if you cannot obtain all necessary information, communicate with the client informing them of any and all material deficiencies

Question 14

3.4

Answer 14

identify the assets over which the certificant will take custody, exercise investment discretion, or exercise supervision.

Question 15

3.5

Answer 15

keep complete records of all funds/property which the certificant will take custody, exercise investment discretion, or exercise supervision

Question 16

3.6

Answer 16

Shall not borrow money from the client

Question 17

3.7

Answer 17

shall not lend money to the client

Question 18

3.8

Answer 18

Shall not commingle assets/property with the certificant or their employer, unless permitted by law.

Question 19

3.9

Answer 19

Shall not commingle assets/property with the certificant or their employer,

Question 20

3.10

Answer 20

Shall return a clients property to the client upon request as soon as practicable or consistent with the time frame specified in an agreement with the client.

Question 21

4

Answer 21

Obligations to prospective clients

Question 22

4.1

Answer 22

Treat prospective clients and clients fairly and provide professional services with integrity and objectivity

Question 23

4.2

Answer 23

offer advice only in areas which he or she is competent and maintain competence in all areas in which he or she is engaged to provide professional services

Question 24

4.3

Answer 24

be in compliance with applicable regulatory requirements governing professional services provided to the client

Question 25

4.4

Answer 25

exercise reasonable and prudent judgement in providing professional services to clients.

Question 26

4.5

Answer 26

In addition to requirements in 1.4, a certificant shall make and/or implement only recommendations that are suitable for the client.

Question 27

4.6

Answer 27

provide reasonable and prudent professional supervision or direction to any subordinate or third party to whom the certifcant assigns responsibility for any client services.

Question 28

4.7

Answer 28

advise current clients of any certification suspension or revocation he or she receives from the CFP board

Question 29

5

Answer 29

Obligation to employers

Question 30

5.1

Answer 30

perform professional services with dedication to the lawful objectives of the employer/principal and in accordance with CFP Boards Code of Ethics.

Question 31

5.2

Answer 31

advise the current employer/principal of any certification suspension or revocation he or she receives from the CFP board

Question 32

6

Answer 32

Obligations to the CFP Board

Question 33

6.1

Answer 33

abide by the terms of all agreements with the CFP Board, including, but not limited to using the CFP marks properly and cooperating fully with CFP Board’s trademark and professional review operations and requirements.

Question 34

6.2

Answer 34

meet all CFP requirements, including continuing education requirements, to retain the right to use the CFP marks

Question 35

6.3

Answer 35

notify CFP board of any changes to contact information within 45 days.

Question 36

6.4

Answer 36

notify the board within 10 days of any conviction of a crime, except misdemeanor traffic offenses or traffic ordinance violations (unless drugs or alcohol are involved).

Question 37

6.5

Answer 37

Do not engage in conduct which reflects adversely on his or her integrity or fitness as a certificant, upon the CFP marks, or the profession.