Sample Questions
Question 1
Easy
A CFP® professional must act as a fiduciary when providing which type of service?
Solution
B is correct.
CFP® professionals must act as fiduciaries when providing both financial planning and financial advice. The CFP Board's Standards of Conduct require the fiduciary duty to apply at all times when these services are rendered, not just during formal financial planning engagements.
CFP® professionals must act as fiduciaries when providing both financial planning and financial advice. The CFP Board's Standards of Conduct require the fiduciary duty to apply at all times when these services are rendered, not just during formal financial planning engagements.
Question 2
Medium
A Registered Investment Adviser (RIA) is primarily regulated under which federal law?
Solution
C is correct.
RIAs are primarily regulated under the Investment Advisers Act of 1940, which established the registration requirements, fiduciary obligations, and regulatory framework for investment advisers.
RIAs are primarily regulated under the Investment Advisers Act of 1940, which established the registration requirements, fiduciary obligations, and regulatory framework for investment advisers.
Question 3
Hard
Under the CFP Board's Code of Ethics, which principle requires a CFP® professional to provide services with competence, diligence, and sound professional judgment?
Solution
D is correct.
The principle of Competence requires CFP® professionals to maintain and develop the knowledge, skills, and abilities necessary to provide financial planning services competently. This includes acting with diligence and sound professional judgment.
The principle of Competence requires CFP® professionals to maintain and develop the knowledge, skills, and abilities necessary to provide financial planning services competently. This includes acting with diligence and sound professional judgment.
