Ethical Standards & Professional Conduct Flashcards
6 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Ethical Standards & Professional Conduct flashcards as text
Which of the following best defines 'fair dealing' as an ethical obligation for CRM professionals?
Answer: Providing equitable, honest, and non-discriminatory service to all clients
Fair dealing means that all clients receive equitable treatment and honest service without bias or favoritism, though services may be tailored to individual needs.
Under the CRM ethics framework, 'transparency' in client communications means:
Answer: Clearly disclosing fees, potential conflicts of interest, and the basis of recommendations
Transparency requires CRM professionals to openly disclose all relevant information—fees, conflicts, and reasoning—so clients can make informed decisions.
If a CRM professional inadvertently provides incorrect financial advice that results in client losses, the ethical response is to:
Answer: Promptly disclose the error to the client and work to correct or remediate it
Ethical conduct requires prompt disclosure of errors and taking corrective action to restore the client's position to the extent possible.
A CRM professional's responsibility to 'know your client' (KYC) is primarily designed to:
Answer: Prevent money laundering, fraud, and ensure suitable advice by understanding the client's full profile
KYC procedures protect against financial crime and ensure that advice and products are appropriate for each specific client's circumstances.
Which professional standard requires a CRM to disclose any personal ownership of securities being recommended to clients?
Answer: Conflict of interest disclosure
Conflict of interest disclosure requires professionals to reveal personal holdings in recommended securities so clients can assess potential bias.
When a CRM professional leaves a firm, their obligation regarding client information is to:
Answer: Return or destroy all confidential client data per the firm's policies and applicable law
Client data is the property of the firm and client, and must be returned or destroyed upon separation per confidentiality agreements and data privacy laws.