Professional Conduct and Fiduciary Responsibility Exam with precise detailed answers

Professional Conduct and Fiduciary Responsibility Exam || || || || || ||




with precise detailed answers
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What does the Code of Ethics and Stands of Professional Conduct define? - ✔✔They define the
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expected level of professional conduct and practice for CFP certificates
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What is the purpose of the Preamble? - ✔✔It describes the value of upholding the inspirational
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standards and incorporating them into everyday financial planning
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Who handles Code and Standard violations and noncompliance? - ✔✔The CFP Board's
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Disciplinary and Ethics Commission || || ||




What are the six principles in the Code of Ethics? - ✔✔1) Act with honesty, integrity,
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competence, and diligence || ||




2) Act in the client's best interest
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3) Exercise due care
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4) Avoid or disclose and manage conflicts of interest
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5) Maintain the confidentiality and protect the privacy of client information
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6) Act in a manner that reflects positively on the financial planning profession and CFP
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certification


What are the six sections of The Standards of Conduct? - ✔✔1) Duties Owed to Clients
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2) Financial Planning and Application of the Practice Standards for the Financial Planning
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Process
3) Practice Standards for the Financial Planning Process
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4) Duties Owed to Firms and Subordinates
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5) Duties Owed to the CFP Board
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6) Prohibition on Circumvention
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, What are the 15 duties that financial planners owe to clients? - ✔✔1) Fiduciary Duty
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2) Integrity
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3) Competence
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4) Diligence
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5) Disclose and Manage Conflicts of Interest
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6) Sound and Objective Professional Judgment
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7) Professionalism
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8) Comply With the Law
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9) Confidentiality and Privacy
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10) Provide Information to a Client
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11) Duties When Representing Compensation
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12) Duties When Communicating With a Client
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13) Duties When Recommending, Engaging, and Working With Additional Persons
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14) Duties When Selecting, Using, and Recommending Technology
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15) Refrain From Borrowing or Lending Money and Commingling Financial Assets
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What three duties fulfill the Fiduciary Duty? Explain each one. - ✔✔1) Duty of Loyalty- Placing
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the client's interests ahead of the CFP, any other entity, or CFP's firm. Avoiding or disclosing and
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managing conflicts of interest. || || ||




2) The CFP must engage the client with care, skill, prudence, and diligence. You must consider
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goals, risk tolerance, objectives, and circumstances
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3) Duty to Follow Client Instructions- CFPs must adhere to the terms of engagement and must
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follow "reasonable and lawful" instructions
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What does the Duty of Integrity say? - ✔✔A CFP must performs services with integrity. This
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means honesty and candor, which may not be subordinated to personal gain or advantage. This
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standard also contains anti-fraud language.
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