CFP (Certified Financial Planner) Exam
2022
Topic 1: Financial Planning Process
6 step process: EGADIM
ANS –
1. Establish Relationship
2. Gather Information
3. Analyze data
4. Develop plan
5. Implement
6. Monitor
Step 1: Establish Relationship
ANS –
• Services that will be provided
• compensation/billing
• Responsibilities of both client/planner
• Time frame of relationship
Step 2: Gather quantitative and qualitative data
ANS - • It is important that goals be defined before any recommendations
• A goal should be specific, prioritized and quantified
• Fact finder form
Step 3: Analyze data ANS - • Identify strengths and weaknesses
• Analysis of current position
• Should be based on realistic assumptions
Step 4: Develop Plan
ANS –
• Objective
• Should be presented to client
• Mutually decide on revisions
• Prioritized list of implementation steps and timing
Step 5: Implement
, ANS –
• Work closely with other professional team members
• Help client with product acquisitions
Step 6: Monitor
ANS –
• Fed tax changes
• Economic changes
• Modifications to plan
Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules Procedures
Aspirational Principles
ANS –
• Integrity
• Objectivity
• Competence
• Fairness
• Confidentiality
• Professionalism
• Diligence
Confidential Information can be disclosed only when...
ANS –
• The client consents
• Court ordered
• CFP must defend accusations
• Civil suit between client and CFP
CFP Board of Professional Review
ANS –
• Inquiry Panel - grounds for discipline
• The Hearing Panel - Recommendation to board
• Board of Appeal - w/in 30 days
Topic 3: Financial Planning Practice Standards
Purpose of practice standards
ANS –
• To ensure professionals follow agreed upon norms
• To advance professionalism
2022
Topic 1: Financial Planning Process
6 step process: EGADIM
ANS –
1. Establish Relationship
2. Gather Information
3. Analyze data
4. Develop plan
5. Implement
6. Monitor
Step 1: Establish Relationship
ANS –
• Services that will be provided
• compensation/billing
• Responsibilities of both client/planner
• Time frame of relationship
Step 2: Gather quantitative and qualitative data
ANS - • It is important that goals be defined before any recommendations
• A goal should be specific, prioritized and quantified
• Fact finder form
Step 3: Analyze data ANS - • Identify strengths and weaknesses
• Analysis of current position
• Should be based on realistic assumptions
Step 4: Develop Plan
ANS –
• Objective
• Should be presented to client
• Mutually decide on revisions
• Prioritized list of implementation steps and timing
Step 5: Implement
, ANS –
• Work closely with other professional team members
• Help client with product acquisitions
Step 6: Monitor
ANS –
• Fed tax changes
• Economic changes
• Modifications to plan
Topic 2: Code of Ethics & Professional Responsibility + Disciplinary Rules Procedures
Aspirational Principles
ANS –
• Integrity
• Objectivity
• Competence
• Fairness
• Confidentiality
• Professionalism
• Diligence
Confidential Information can be disclosed only when...
ANS –
• The client consents
• Court ordered
• CFP must defend accusations
• Civil suit between client and CFP
CFP Board of Professional Review
ANS –
• Inquiry Panel - grounds for discipline
• The Hearing Panel - Recommendation to board
• Board of Appeal - w/in 30 days
Topic 3: Financial Planning Practice Standards
Purpose of practice standards
ANS –
• To ensure professionals follow agreed upon norms
• To advance professionalism
