RFC Financial Planning Principles & Ethics

Question 1

Which of the following is a core principle of ethical financial planning?

Accepted Answer

Integrity

Answer

Product promotion

Answer

Client persuasion

Answer

Commission priority

Question 2

What does the fiduciary duty of a financial consultant require?

Accepted Answer

Acting in the client’s best interest

Answer

Choosing the most profitable product

Answer

Following market trends

Answer

Increasing trading volume

Question 3

What should a consultant do when faced with a conflict of interest?

Accepted Answer

Notify the client and disclose the conflict

Answer

Disregard and continue the plan

Answer

Delay financial recommendations

Answer

Only inform a supervisor

Question 4

Why is confidentiality important in financial planning?

Accepted Answer

It builds trust and protects privacy

Answer

It improves marketing outcomes

Answer

It increases investment returns

Answer

It enables cold calling

Question 5

Which of the following best reflects professional competence?

Accepted Answer

Pursuing ongoing education

Answer

Relying on past knowledge

Answer

Avoiding certifications

Answer

Delegating all analysis

Question 6

How should a financial planner address unrealistic client expectations?

Accepted Answer

Give objective, honest advice

Answer

Agree to all demands

Answer

Promise high returns

Answer

Avoid discussing risk