Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Free Practice Questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Basic elements of financial planning process are:
I. Analysing and evaluating the client’s financial status.
II. Implementing the financial planning recommendations.
III. Creating the financial statements.
IV. Monitoring the financial planning recommendations.Correct
Personal financial planning process
The Code of Ethics and Professional Responsibility defines a number of terms that are essential to the practice of financial planning. The personal financial planning process, sometimes just known as the financial planning process, is the process that includes (but is not necessarily limited to) six basic elements: establishing and defining the client-planner relationship; gathering client data, objectives, and goals; analyzing and evaluating the client’s financial status; developing and presenting financial planning recommendations; implementing the financial planning recommendations; and, finally, monitoring the financial planning recommendations.Incorrect
Personal financial planning process
The Code of Ethics and Professional Responsibility defines a number of terms that are essential to the practice of financial planning. The personal financial planning process, sometimes just known as the financial planning process, is the process that includes (but is not necessarily limited to) six basic elements: establishing and defining the client-planner relationship; gathering client data, objectives, and goals; analyzing and evaluating the client’s financial status; developing and presenting financial planning recommendations; implementing the financial planning recommendations; and, finally, monitoring the financial planning recommendations. -
Question 2 of 10
2. Question
Which of the following principles directly asserts that financial planners should remain objective regarding the achievable goals for each client?
Correct
The seven principles are qualities that an ethical financial planner will cultivate. They are integrity, objectivity, competence, fairness, confidentiality, professionalism, and diligence. Though these principles in general have the well being of the client in mind, they do not assert that a financial planner should manipulate facts in order to please a potential client. On the contrary, the second principle, objectivity, directly asserts that financial planners should remain objective regarding the achievable goals for each client.
Incorrect
The seven principles are qualities that an ethical financial planner will cultivate. They are integrity, objectivity, competence, fairness, confidentiality, professionalism, and diligence. Though these principles in general have the well being of the client in mind, they do not assert that a financial planner should manipulate facts in order to please a potential client. On the contrary, the second principle, objectivity, directly asserts that financial planners should remain objective regarding the achievable goals for each client.
-
Question 3 of 10
3. Question
Which of the following qualities should be cultivated in a financial planner?
I. Integrity
II. Competence
III. Weariness
IV. DiligenceCorrect
These principles apply to all CFP Board designees and are meant to provide guidance to financial planners as they go about their business. The seven principles are qualities that an ethical financial planner will cultivate. They are integrity, objectivity, competence, fairness, confidentiality, professionalism, and diligence.
Incorrect
These principles apply to all CFP Board designees and are meant to provide guidance to financial planners as they go about their business. The seven principles are qualities that an ethical financial planner will cultivate. They are integrity, objectivity, competence, fairness, confidentiality, professionalism, and diligence.
-
Question 4 of 10
4. Question
Identify the specific rules which are outlined for the financial planner:
I. Financial planner must act in the interest of the client.
II. He can offer the advice in those areas in which he may not have competence.
III. Financial planner must stay informed of all the developments in the field of financial planning.
IV. Financial planner may or may not be objective.Correct
The Code of Ethics and Professional Responsibility outlines some specific rules for situations that are common to a financial planner. Rule 201 states that a financial planner must exercise reasonable and prudent professional judgment. Rule 202 states that a financial planner must act in the interest of the client. Rule 301 states that a financial planner must stay informed of developments in the field of financial planning and participate in continuing education. Rule 302 states that a financial planner must offer advice only in those areas in which that financial planner has competence. In those matters in which the financial planner is not competent, he or she should seek the counsel of qualified individuals.
Incorrect
The Code of Ethics and Professional Responsibility outlines some specific rules for situations that are common to a financial planner. Rule 201 states that a financial planner must exercise reasonable and prudent professional judgment. Rule 202 states that a financial planner must act in the interest of the client. Rule 301 states that a financial planner must stay informed of developments in the field of financial planning and participate in continuing education. Rule 302 states that a financial planner must offer advice only in those areas in which that financial planner has competence. In those matters in which the financial planner is not competent, he or she should seek the counsel of qualified individuals.
-
Question 5 of 10
5. Question
Identify the provisions under rule 401 which is outlined by The Code of Ethics and Professional Responsibility for financial planning.
Correct
The Code of Ethics and Professional Responsibility has specific rules for situations that are common in financial planning. Rule 401 requires that a financial planner disclose to the client any important material information, including conflicts of interest and any changes in business affiliation, address, telephone number, credentials, qualifications, licenses, compensation structure, and agency relationships. Also, Rule 401 states that a financial planner must disclose the information required by all laws applicable to the relationship in a manner that is consistent with the relevant laws. Rule 401 is based on the Principle of Fairness, insofar as its objective is to ensure that the client has all of the information needed to make informed decisions about a financial planner.
Incorrect
The Code of Ethics and Professional Responsibility has specific rules for situations that are common in financial planning. Rule 401 requires that a financial planner disclose to the client any important material information, including conflicts of interest and any changes in business affiliation, address, telephone number, credentials, qualifications, licenses, compensation structure, and agency relationships. Also, Rule 401 states that a financial planner must disclose the information required by all laws applicable to the relationship in a manner that is consistent with the relevant laws. Rule 401 is based on the Principle of Fairness, insofar as its objective is to ensure that the client has all of the information needed to make informed decisions about a financial planner.
-
Question 6 of 10
6. Question
Identify the types of Boards of Professional review:
I. Hearing Panel
II. Judging Panel
III. Inquiry Panel
IV. Administrative PanelCorrect
The Board of Professional Review is charged with investigating, evaluating, and taking whatever action is appropriate when violations of the Code of Ethics are alleged to have occurred. The Board of Professional Review is also called in when there is an allegation that a financial planner has not complied with the Practice Standards. The Board can be divided into two panels: an Inquiry Panel (which investigates and assesses allegations) and a Hearing Panel (which administrates hearings regarding violations). Each panel will have a chair. No member of one panel is allowed to serve on the other panel in regards to the same matter.
Incorrect
The Board of Professional Review is charged with investigating, evaluating, and taking whatever action is appropriate when violations of the Code of Ethics are alleged to have occurred. The Board of Professional Review is also called in when there is an allegation that a financial planner has not complied with the Practice Standards. The Board can be divided into two panels: an Inquiry Panel (which investigates and assesses allegations) and a Hearing Panel (which administrates hearings regarding violations). Each panel will have a chair. No member of one panel is allowed to serve on the other panel in regards to the same matter.
-
Question 7 of 10
7. Question
When an allegation is made and investigation has begun and there is no response from the designee even after 20 days, which panel takes up the matter:
Correct
If the CFP Board determines that there are no grounds for disciplinary action, then they will take no action. The Board has the right to force a designee to complete additional education or remedial work. The Board may privately censure a designee. The Board may also issue a public Letter of Admonition, which is a reproach against misbehavior. The Board may order that a designee be suspended for a certain length of time. The Board may also permanently revoke the license of a designee. When allegations are made and an investigation is begun, the designee has 20 calendar days from the notice of the investigation to file a written response with the Board. If there is no response, the Hearing Panel takes up the matter; otherwise, the Inquiry Panel takes up the matter.
Incorrect
If the CFP Board determines that there are no grounds for disciplinary action, then they will take no action. The Board has the right to force a designee to complete additional education or remedial work. The Board may privately censure a designee. The Board may also issue a public Letter of Admonition, which is a reproach against misbehavior. The Board may order that a designee be suspended for a certain length of time. The Board may also permanently revoke the license of a designee. When allegations are made and an investigation is begun, the designee has 20 calendar days from the notice of the investigation to file a written response with the Board. If there is no response, the Hearing Panel takes up the matter; otherwise, the Inquiry Panel takes up the matter.
-
Question 8 of 10
8. Question
Which counsel maintains the office for the filing of requests for the investigation of CFP Board Designee Conduct?
Correct
The staff counsel maintains a central office for the filing of requests for the investigation of CFP Board designee conduct, for the coordination of investigations, for the enforcement of disciplinary enforcement proceedings carried out pursuant to these procedures, for the prosecution of charges of wrongdoing against CFP designees, and for any other duties designated by the Board.
Incorrect
The staff counsel maintains a central office for the filing of requests for the investigation of CFP Board designee conduct, for the coordination of investigations, for the enforcement of disciplinary enforcement proceedings carried out pursuant to these procedures, for the prosecution of charges of wrongdoing against CFP designees, and for any other duties designated by the Board.
-
Question 9 of 10
9. Question
The Certified Financial Planners (CFP) Board requires that certain disclosures be made in writing, while others may optionally be made verbally. Identify the disclosures that need not be in writing:
Correct
The disclosures that must be in writing are as follows: the parties to the agreement, the date and length of the client-planner engagement, how either party may terminate the agreement, services provided, how the planner will be paid, any conflicts of interest, contact information for the planner, and information about the planner that may influence the client’s decision as to whether or not to enter a planning relationship.
Incorrect
The disclosures that must be in writing are as follows: the parties to the agreement, the date and length of the client-planner engagement, how either party may terminate the agreement, services provided, how the planner will be paid, any conflicts of interest, contact information for the planner, and information about the planner that may influence the client’s decision as to whether or not to enter a planning relationship.
-
Question 10 of 10
10. Question
The CFP professional must inform the Board of any conviction of crime or professional discipline within how many days of its occurrence?
Correct
The CFP professional must also inform the board of any conviction of crime (excluding minor traffic offenses) or professional discipline within 30 days of its occurrence. This applies also to changes in the status of a matter that was previously disclosed to the CFP Board.
Incorrect
The CFP professional must also inform the board of any conviction of crime (excluding minor traffic offenses) or professional discipline within 30 days of its occurrence. This applies also to changes in the status of a matter that was previously disclosed to the CFP Board.