Practice Test GeeksCFP - Certified Financial Planner Practice Test
← All CFP Flashcard Decks

Professional Standards & Competencies Flashcards

7 cards from real CFP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Professional Standards & Competencies flashcards as text

  1. CFP Board's Code of Ethics requires CFP® professionals to act with 'integrity.' Which action MOST clearly violates this principle?

    Answer: Omitting a material risk in a client presentation because the planner believes the client would find it confusing

    Omitting material information — even with good intentions — violates the integrity principle because it prevents the client from making a fully informed decision.

  2. When must a CFP® professional provide a written engagement letter or financial planning agreement?

    Answer: Before or at the time of entering into a financial planning engagement

    CFP Board's Practice Standards require that the scope of the engagement, compensation, and other material terms be documented in writing before or at the time the engagement begins.

  3. A CFP® professional is convicted of a felony unrelated to financial services. What is their obligation to CFP Board?

    Answer: They must self-report the conviction to CFP Board within 30 calendar days

    CFP Board's Procedural Rules require self-reporting of criminal convictions, including felonies unrelated to financial services, within 30 calendar days.

  4. Which of the following BEST describes the 'objectivity' principle in the CFP Board Code of Ethics?

    Answer: Maintaining an intellectual honesty and impartiality that is free from bias, prejudice, and conflicts of interest

    Objectivity means providing advice and analysis free from bias and conflicts of interest, grounded in intellectual honesty regardless of the compensation model used.

  5. A CFP® professional learns that a colleague is using client funds for personal expenses. The CFP® professional's BEST course of action is to:

    Answer: Report the misconduct to CFP Board and appropriate regulatory authorities

    Misappropriation of client funds is a serious violation; CFP® professionals have an ethical obligation to report known misconduct to CFP Board and relevant regulatory authorities.

  6. The CFP® certification marks may be used by:

    Answer: Only current CFP® certificants who are in good standing with CFP Board

    Only individuals who have met all CFP Board requirements — education, examination, experience, and ethics — and who are currently certified and in good standing may use the CFP® marks.

  7. Under CFP Board's Standards, when analyzing a client's financial situation, which approach BEST reflects the financial planning process?

    Answer: Evaluate the client's entire financial picture holistically, considering interrelationships among all planning areas

    Holistic analysis — recognizing that decisions in one planning area affect others — is a core competency of the financial planning process and distinguishes it from product-specific advice.