Question 1

What financial regulatory agency oversees firms that offer securities to the public?

Accepted Answer

A) Commodity Futures Trading Commission 
B) Office of Thrift Supervision 
C) Financial Industry Regulatory Authority 
D) Office of the Comptroller of the Currency 
A) Commodity Futures Trading Commission 
B) Office of Thrift Supervision 
C) Financial Industry Regulatory Authority 
D) Office of the Comptroller of the Currency C

Question 2

When the CFP Board Counsel receives information requiring an investigation, what is the first step in the investigation?

Accepted Answer

A) The CFP Board Counsel calls the respondent, requesting records for the investigation 
B) The CFP Board Counsel provides written notice to the respondent, giving 30 days to respond 
C) The CFP Board Counsel temporarily suspends the respondent until the investigation is complete 
D) The CFP Board Counsel provides written notice to the respondent, giving 20 days to respond 
A) The CFP Board Counsel calls the respondent, requesting records for the investigation 
B) The CFP Board Counsel provides written notice to the respondent, giving 30 days to respond 
C) The CFP Board Counsel temporarily suspends the respondent until the investigation is complete 
D) The CFP Board Counsel provides written notice to the respondent, giving 20 days to respond B

Question 3

Which of the following certificants is following the CFP Board's Principles?

Accepted Answer

A) Sam went to school with his client, William. Because of an old rivalry, Sam gives William advice that he knows is not accurate. 
B) 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. 
C) 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. 
D) Bill's clients, Sarah and Paul, divorce each other. Bill continues to keep both of them as clients without telling them. 
A) Sam went to school with his client, William. Because of an old rivalry, Sam gives William advice that he knows is not accurate. 
B) 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. 
C) 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. 
D) Bill's clients, Sarah and Paul, divorce each other. Bill continues to keep both of them as clients without telling them. B

Question 4

If the DEC determines that suspension is required, what is the maximum period of suspension?

Accepted Answer

A) 1 year 
B) 3 years 
C) 5 years 
D) 10 years 
A) 1 year 
B) 3 years 
C) 5 years 
D) 10 years

Question 5

What agency is responsible for ensuring that businesses act fairly in commerce?

Accepted Answer

A) Federal Commerce Commission 
B) United States Treasury Department 
C) Federal Bureau of Investigation 
D) Federal Trade Commission 
A) Federal Commerce Commission 
B) United States Treasury Department 
C) Federal Bureau of Investigation 
D) Federal Trade Commission

Question 6

Who enforces and administers consumer protection laws?

Accepted Answer

A) Internal Revenue Service 
B) Federal Trade Commission 
C) Fair Credit Commission 
D) Equal Credit Commission 
A) Internal Revenue Service 
B) Federal Trade Commission 
C) Fair Credit Commission 
D) Equal Credit Commission

Question 7

If there are limitations on your recommendation to a client based on business or regulatory requirements, what should you do?

Accepted Answer

A) Do what is best for the client, regardless of the requirements 
B) Refer the client to another practitioner 
C) Disclose any limitations to the client 
D) Assume that the client knows the regulations and proceed with the best available options 
A) Do what is best for the client, regardless of the requirements 
B) Refer the client to another practitioner 
C) Disclose any limitations to the client 
D) Assume that the client knows the regulations and proceed with the best available options

Question 8

Which of the following is NOT a Principle outlined by the CFP Board?

Accepted Answer

A) Compassion 
B) Confidentiality 
C) Diligence 
D) Fairness 
A) Compassion 
B) Confidentiality 
C) Diligence 
D) Fairness

Question 9

What of the following is NOT a requirement under the Equal Credit Opportunity Act?

Accepted Answer

A) No creditor can discriminate on the basis of race, color, religion, national origin, sex, marital status, or age 
B) No creditor can retain a record of a credit application 
C) All creditors must notify applicants of any actions they take on any applications 
D) All creditors must supply applicants with a copy of any appraisal report that is used for a credit transaction 
A) No creditor can discriminate on the basis of race, color, religion, national origin, sex, marital status, or age 
B) No creditor can retain a record of a credit application 
C) All creditors must notify applicants of any actions they take on any applications 
D) All creditors must supply applicants with a copy of any appraisal report that is used for a credit transaction

Question 10

Which regulation requires anyone initiating a debit from a consumer's bank account to notify the consumer of the type of transaction?

Accepted Answer

A) Reserve Requirements of Depository Institutions 
B) Disclosure and Reporting of CRA-Related Agreements 
C) Electronic Fund Transfers 
D) Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire 
A) Reserve Requirements of Depository Institutions 
B) Disclosure and Reporting of CRA-Related Agreements 
C) Electronic Fund Transfers 
D) Collection of Checks and Other Items by Federal Reserve Banks and Funds Transfers through Fedwire

Question 11

What Federal Trade Commission Statue protects individuals from lost or stolen credit card penalties?

Accepted Answer

A) Truth in Lending Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Credit Protection Act 
A) Truth in Lending Act 
B) Fair Credit Billing Act 
C) Equal Credit Opportunity Act 
D) Credit Protection Act

Question 12

Which of the following is true regarding developing a client's financial planning recommendations?

Accepted Answer

A) You should not consider the client's current course of action when developing financial planning recommendations. 
B) You cannot provide a general recommendation; all recommendations must be specific. 
C) Your recommendations may differ from other practitioners, as long as they reasonably meet the client's goals. 
D) After considering recommendations, you can never request that a client change one of the mutually agreed goals. 
A) You should not consider the client's current course of action when developing financial planning recommendations. 
B) You cannot provide a general recommendation; all recommendations must be specific. 
C) Your recommendations may differ from other practitioners, as long as they reasonably meet the client's goals. 
D) After considering recommendations, you can never request that a client change one of the mutually agreed goals.

Question 13

Which of the following is true regarding establishing a relationship with a client?

Accepted Answer

A) The scope of engagement must be in writing and signed by both the Certified Financial Planner and the client 
B) The Certified Financial Planner should identify the scope of engagement alone, after consulting with the client 
C) The Certified Financial Planner should let the client know all compensation arrangements 
D) The scope of engagement cannot change after the initial establishment of the relationship 
A) The scope of engagement must be in writing and signed by both the Certified Financial Planner and the client 
B) The Certified Financial Planner should identify the scope of engagement alone, after consulting with the client 
C) The Certified Financial Planner should let the client know all compensation arrangements 
D) The scope of engagement cannot change after the initial establishment of the relationship

Question 14

What is the name of the committee that is responsible for reviewing and acting on possible violations of the Code of Ethics and Rules of Conduct?

Accepted Answer

A) Disciplinary and Ethics Commission 
B) Certified Financial Planner Ethics Board 
C) Board of Ethics Directors 
D) Ethics Commission 
A) Disciplinary and Ethics Commission 
B) Certified Financial Planner Ethics Board 
C) Board of Ethics Directors 
D) Ethics Commission

Question 15

In which case does the CFP Board determine that a practitioner is a fiduciary?

Accepted Answer

A) When the client hires the practitioner in any capacity 
B) When the practitioner performs financial planning activities 
C) When the practitioner performs any activities other than financial planning activities 
D) When the client explicitly gives the practitioner "fiduciary" status in writing 
A) When the client hires the practitioner in any capacity 
B) When the practitioner performs financial planning activities 
C) When the practitioner performs any activities other than financial planning activities 
D) When the client explicitly gives the practitioner "fiduciary" status in writing

Question 16

Based on the CFP Board's Principles, which of the following is demanded by integrity?

Accepted Answer

A) Candor 
B) Personal gain 
C) Legitimate differences of opinion 
D) Subordination of personal principles 
A) Candor 
B) Personal gain 
C) Legitimate differences of opinion 
D) Subordination of personal principles

Question 17

During analysis and evaluation of the client's information, the financial planner should seek to understand the client's financial situation. Then, determine how well the client's resources and current financial actions can meet the client's goals, needs, and priorities. This relates to three of the Code of Ethics principles. Which of the following is NOT one of those principles?

Accepted Answer

A) Objectivity 
B) Competence 
C) Diligence 
D) Confidentiality 
A) Objectivity 
B) Competence 
C) Diligence 
D) Confidentiality

Question 18

How long must a national bank keep records of any fiduciary account?

Accepted Answer

A) 5 years from the transaction date 
B) 5 years from the date the fiduciary account is closed 
C) 3 years from the transaction date 
D) 3 years from the date the fiduciary account is closed 
A) 5 years from the transaction date 
B) 5 years from the date the fiduciary account is closed 
C) 3 years from the transaction date 
D) 3 years from the date the fiduciary account is closed

Question 19

If a national bank has investment discretion over funds held for investment, what can the bank NOT do with those funds?

Accepted Answer

A) Keep the funds uninvested for an unspecified length of time 
B) Deposit the funds in a savings account in the same bank 
C) Deposit the funds in a savings account of an affiliated deposit institution 
D) Draw interest on any uninvested funds kept in a bank account 
A) Keep the funds uninvested for an unspecified length of time 
B) Deposit the funds in a savings account in the same bank 
C) Deposit the funds in a savings account of an affiliated deposit institution 
D) Draw interest on any uninvested funds kept in a bank account

Question 20

According to the CFP Board's Code of Conduct, which of the following must a certificant do?

Accepted Answer

A) Lend money to clients when necessary 
B) Borrow money from clients 
C) Combine a client's property with his or her employer's property 
D) Return a client's property upon the client's request 
A) Lend money to clients when necessary 
B) Borrow money from clients 
C) Combine a client's property with his or her employer's property 
D) Return a client's property upon the client's request

What financial regulatory agency oversees firms that offer securities to the public?

When the CFP Board Counsel receives information requiring an investigation, what is the first step in the investigation?

Which of the following certificants is following the CFP Board's Principles?

If the DEC determines that suspension is required, what is the maximum period of suspension?

What agency is responsible for ensuring that businesses act fairly in commerce?

Who enforces and administers consumer protection laws?

If there are limitations on your recommendation to a client based on business or regulatory requirements, what should you do?

Which of the following is NOT a Principle outlined by the CFP Board?

What of the following is NOT a requirement under the Equal Credit Opportunity Act?

Which regulation requires anyone initiating a debit from a consumer's bank account to notify the consumer of the type of transaction?

What Federal Trade Commission Statue protects individuals from lost or stolen credit card penalties?

Which of the following is true regarding developing a client's financial planning recommendations?

Which of the following is true regarding establishing a relationship with a client?

What is the name of the committee that is responsible for reviewing and acting on possible violations of the Code of Ethics and Rules of Conduct?

In which case does the CFP Board determine that a practitioner is a fiduciary?

Based on the CFP Board's Principles, which of the following is demanded by integrity?

How long must a national bank keep records of any fiduciary account?

If a national bank has investment discretion over funds held for investment, what can the bank NOT do with those funds?

According to the CFP Board's Code of Conduct, which of the following must a certificant do?

Education Planning

Education Planning

Estate Planning

Estate Planning

General Principles of Financial Planning

General Principles of Financial Planning

Investment Planning

Investment Planning

Professional Conduct and Regulation

Retirement Savings and Income Planning

Retirement Savings and Income Planning

Risk Management and Insurance Planning

Risk Management and Insurance Planning

Tax Planning

Tax Planning

Filters

Exam 5: Professional Conduct and Regulation

What financial regulatory agency oversees firms that offer securities to the public?

When the CFP Board Counsel receives information requiring an investigation, what is the first step in the investigation?

Which of the following certificants is following the CFP Board's Principles?

If the DEC determines that suspension is required, what is the maximum period of suspension?

What agency is responsible for ensuring that businesses act fairly in commerce?

Who enforces and administers consumer protection laws?

If there are limitations on your recommendation to a client based on business or regulatory requirements, what should you do?

Which of the following is NOT a Principle outlined by the CFP Board?

What of the following is NOT a requirement under the Equal Credit Opportunity Act?

Which regulation requires anyone initiating a debit from a consumer's bank account to notify the consumer of the type of transaction?

What Federal Trade Commission Statue protects individuals from lost or stolen credit card penalties?

Which of the following is true regarding developing a client's financial planning recommendations?

Which of the following is true regarding establishing a relationship with a client?

What is the name of the committee that is responsible for reviewing and acting on possible violations of the Code of Ethics and Rules of Conduct?

In which case does the CFP Board determine that a practitioner is a fiduciary?

Based on the CFP Board's Principles, which of the following is demanded by integrity?

How long must a national bank keep records of any fiduciary account?

If a national bank has investment discretion over funds held for investment, what can the bank NOT do with those funds?

According to the CFP Board's Code of Conduct, which of the following must a certificant do?

Education Planning

Education Planning

Estate Planning

Estate Planning

General Principles of Financial Planning

General Principles of Financial Planning

Investment Planning

Investment Planning

Professional Conduct and Regulation

Retirement Savings and Income Planning

Retirement Savings and Income Planning

Risk Management and Insurance Planning

Risk Management and Insurance Planning

Tax Planning

Tax Planning

Filters