HS300 CFP Exam Study Set UPDATED ACTUAL Questions and CORRECT Answers

HS300 CFP Exam Study Set UPDATED ACTUAL Questions
and CORRECT Answers


1 Financial Planning process 1. Understasnding the client's personal and financial circumstances
2. Identifying and selecting goals
3. Analyzing the client's course of action and potential alternatives
4. Develop the financial planning recommendations
5. Presenting the financial planning recommendations
6. Implementing the financial planning recommendations
7. Monitoring progress and updating


1 What is an engagement letter? a legal agtreement prepared by the advisor that should be signed by the advisor
and client


1 What is in an engagement letter? - identification of parties
- identification and description of services
- disclosure of the advisor's material conflicts of interest
- disclosure of advisor's fees, costs, and any other compensation
- determination of the client's and the advisor's responsibilities
- defined duration of engagement




1 What qualitative data should you gather about the goals, values, risk tolerance, and psychology
client?


1 What quantitative data should you gather about the current income, expected future income, family member ages, value of assets and
client? debts


1 What regulatory authority governs investment advice? SEC and State securities administrator


1 What regulatory authority governs sale of securities? SEC and State securities administrator


1 What regulatory authority governs sale of insurance? State insurance commissioner


1 What regulatory authority governs Income tax IRS
preparation


1 What regulatory authority governs legal advice? State Bar Association and American Bar Assosication [ABA]


1 What regulatory authority governs accounting services? State society of CPAs and American Institute of CPAs [AICPA]


1 What regulatory authority governs real estate law State real estate commission