Which of the following is are a duty owed to clients in the CFP Board standards of conduct independence professionalism competence fairness?

CFP® professionals must develop their theoretical and practical financial planning knowledge by completing a comprehensive course of study at a college or university offering a financial planning curriculum approved by the CFP Board. Other options for satisfying the education component include submitting a transcript review or previous financial planning-related course work to the CFP Board for review and credit, or showing the attainment of certain professional designations or academic degrees.

CFP® practitioners must pass a comprehensive, 6 hour CFP Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. Based on regular research of what planners do, the exam covers the financial planning process, tax planning, employee benefits and retirement planning, estate planning, investment management and insurance.

CFP® professionals complete several years of experience related to delivering financial planning services to clients prior to earning the right to use the CFP® certification trademarks. This hands-on experience demonstrates that CFP® professionals have practical financial planning knowledge, so you can count on them to help you create a realistic financial plan that fits your individual needs.

When it comes to ethics and professional responsibility, CFP®professionals are held to the highest of standards, as outlined in CFP Board's Standards of Professional Conduct. They are obliged to uphold the principles of integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence as outlined in CFP Board’s Code of Ethics. The Rules of Conduct require CFP® professionals to put your interests ahead of their own at all times and to provide their financial planning services as a “fiduciary”—acting in the best interest of their financial planning clients. CFP® professionals are subject to CFP Board sanctions if they violate these standards.

All of the following statements from the Disciplinary Rules and Procedures concerning revocation, suspension, and reinstatement after discipline are correct EXCEPT:

A) After the entry of an order of revocation is final, the CFP® certificant shall promptly terminate any use of the marks and in particular shall not use them in any advertising, announcement, letterhead, or business card.

B) After the entry of an order of suspension is final, the CFP® certificant shall promptly terminate any use of the marks and in particular shall not use them in any advertising, announcement, letterhead, or business card.

C) Revocation is permanent with no opportunity for reinstatement unless specifically sanctioned by CFP Board's Board of Professional Review.

D) A CFP® certificant suspended for longer than 1 year must petition the Board for reinstatement, attend a hearing, and present clear and convincing evidence that the CFP® certificant has been rehabilitated.

William, a CFP® certificant, routinely loans money from his personal money market deposit account only to his clients on a private basis using short-term unsecured promissory notes with higher than market interest rates. His small business clients appreciate the service and continually use this service and recommend others to William's practice. By offering this service, has William violated any of the Principles found in CFP Board's Standards of Professional Conduct?

1. Yes, he has violated the Principle of Integrity.
2. No, he has acted with the utmost in professionalism by offering an additional service to his clients.
3. Yes, he has violated the Principle of Objectivity.
4. No, because he only loans money to his clients on a private basis, he follows the Principle of Confidentiality.

A) 1, 3 and 4
B) 1 and 3
C) 2, 3 and 4
D) 2 and 4

Which of the following is a violation of the Principles found in CFP Board's Standards of Professional Conduct?

1. John, a CFP® certificant, loans money to his cousin to purchase a new stereo system.
2. Lucy, a CFP® certificant, discloses a conflict of interest to her client during their initial meeting.
3. Ron, a CFP® certificant, reveals the names of his clients and their portfolio performance with new prospective clients.
4. Howard, a CFP® certificant, assists clients with drafting wills and trusts even though he is not an attorney.

A) 3 and 4
B) 1, 2 and 3
C) 1 and 2
D) 2, 3 and 4

Eric asks his brother, Will, a CFP® certificant and attorney, to prepare a power of attorney for him. Will agrees to do this for Eric and meets with him when the documents are completed. During that meeting, Will presents an investment plan for Eric based on conversations he and Eric have had over the years. Eric thanks Will for preparing the power of attorney and pays him a fee for doing so. Eric, however, tells Will he isn't interested in an investment plan at this time but may contact him in the future if that changes. Based on the facts provided, is Will providing financial planning for Eric?

A) Yes, because Will created an investment plan for Eric, and investment planning is one of the financial planning subject areas.
B) No, because Eric didn't ask Will to prepare, nor did he expect Will to create an investment plan for Eric.
C) Yes, because Will charged Eric a fee for his services.
D) No, because Will is a member of Eric's immediate family.

Brad, a CFP® certificant, owns a busy and successful financial planning practice. Currently, he manages two junior planners and two office personnel. Recently, a new prospective client met with Brad to develop a comprehensive estate plan. Because he was busy, Brad delegated this client to Kevin, also a CFP® certificant, who is inexperienced in the area of estate planning. Kevin proceeded to prepare the plan to the best of his knowledge and present it to Brad who would ultimately meet with the client to discuss the details of the plan. Which of the following Principles did Brad and Kevin violate?

1. By preparing the plan, Kevin violated the Principle of Competence.
2. Brad violated the Principle of Diligence for delegating the plan to an inexperienced subordinate.
3. By sharing the client information with Kevin, Brad violated the Principle of Confidentiality.

A) 1 and 2
B) 2 only
C) 1 and 3
D) 1, 2 and 3

When a CFP professional has duties to one client that may be adverse to another client?

What is the CFP Board definition of fiduciary duty?

Which of the following is not a principle in the CFP Board's Code of Ethics quizlet?

What is the role of the Standards of conduct in relation to CFP Board's code of ethics and Standards of conduct?