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
The CFP Board's disciplinary process for an alleged violation of the Standards of Conduct begins with:
Solution
D is correct.
The CFP Board's disciplinary process begins with an investigation by the CFP Board's Compliance Department to assess whether a complaint has merit. If the investigation reveals potential violations, the matter may be referred for further proceedings.
The CFP Board's disciplinary process begins with an investigation by the CFP Board's Compliance Department to assess whether a complaint has merit. If the investigation reveals potential violations, the matter may be referred for further proceedings.
