Ethics

Question 1

What does the Standards or Professional Responsibility represent (4 items)?

Answer 1

1. Code of Ethics
2. Rules of Conduct
3. Fitness Standards
4. FP Practice Standards

Question 2

How many Principals of the “Code of Ethics”?

Answer 2

8

Question 3

What is Principle 1:

Answer 3

Duty of Loyalty to the Client - CLIENT FIRST in all ways

• act in their best interest
  -place their needs first
  -disclose conflicts and mitigate in clients favor
• act with care, skill, diligence of a prudent professional

Question 4

What is Principle 2:

Answer 4

Integrity - adherence to moral rules

• rigorous adherence to moral rules and duties imposed by honesty and justice
• observe both letter and spirit of code of ethics

Question 5

What is Principle 3:

Answer 5

Objectivity - unbiased, objective advice and judgement

• provides objective advice to clients
  -intellectual honesty
• impartial and sound judgement

Question 6

What is Principle 4:

Answer 6

Competence - skilled and knowledgeable

• must maintain abilities and skills necessary for clients
• maintains high level of knowledge
• applies knowledge

Question 7

What is Principle 5:

Answer 7

Fairness - provides honest expectations

• fair and open in all relationships
• provide clients with what they should reasonably expect from the relationship
• disclosure of all relevant facts or conflicts of interest

Question 8

What is Principle 6:

Answer 8

Confidentiality - 100% secure info

• info be secured, protected and maintained to those authorized

Question 9

What is Principle 7:

Answer 9

Diligence - proactive and timely

• FP person acts diligently when providing advice, in a timely and thorough manner with informing, planning, supervising and delivering advice

Question 10

What is Principle 8:

Answer 10

Professionalism - respect from world

• acts in a manner reflecting positively upon the profession
• inspires confidence and respect from clients and community

Question 11

What are the Rules of Conduct?

Answer 11

• reflects standard of conduct certificates must demand of themselves and peers
• subject to disciplinary action

Question 12

What are the Rules of Conduct?

Answer 12

1. Cert not engage with people engaged in dishonesty, fraud or any false misleading
2. Does not conduct in any business outside of their practice that adversely reflects on their integrity or fitness
3. Do not undermine another CFP person
4. Cert needs to alert council if another professional
5. Cert alert of any illegal misconduct in their knowing - must have no substantial doubt
6. Fiduciary duties
7. Disclosure of all compensation fees and costs
8. Written summary of any conflicts of interest
9. Timely disclosure of any changes to material
10. Adhere to client engagement ( oral or written)

it goes on and on

Question 13

List the Practice Standards

Answer 13

PS1. Explain your role and how you can help them reach goals, needs and priorities
2. Define Terms of Engagement
3. Identify Client Goals Needs Priorities
4. Gather client info
5. Assess current sitch
6. Identify and Evaluate relevant strategies
7. Develop Recco’s
8. Present
9. Discuss actions, responsibilites and time frames
10. Implement reccos
11. Monitor Review (i added this)

Question 14

What are the 8 principals in the Code of Ethics?

Answer 14

1. Client first
2. Confidentiality
3. Fairness
4. Competency
5. Due Diligence
6. Professionalism
7. Integrity
8. Objectivity