Practice Quiz

Financial Planner

Category - Professional Conduct and Regulation

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Which of the following certificants is following the CFP Board’s Principles?
  1. Sam went to school with his client, William. Because of an old rivalry, Sam gives William advice that he knows is not accurate.
  2. Natalie does not like her client, Bert, who wants advice on planning for the next year’s tax return. She researches the U.S. Tax Code and gives him the information, plus the reference for later use.
  3. Karen’s assistant booked too many appointments for the day. Karen rushes through each client, giving them information without asking all of her normal questions. She is able to meet with all of her clients on that day.
  4. Bill’s clients, Sarah and Paul, divorce each other. Bill continues to keep both of them as clients without telling them.
Explanation
Answer: B - In order to follow the CFP Board’s Principles, you must be fair in all your professional relationships. You cannot give a client advice that you know is incorrect, and you must disclose all conflicts of interest. You must treat all clients fairly, and you cannot let your feelings about a client or situation alter how you treat that client.
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