Professional Conduct and Regulation

A client asks his CFP professional to design an exit plan for selling his medical practice to a hospital system. The CFP professional has never advised on a business sale. What should she do?

Two years after a client ended her engagement, her former husband calls her old CFP professional and asks for copies of her account statements for a court dispute. He presents no subpoena or court order, and the former client has not consented. What should the CFP professional do?

A CFP professional has gathered a couple's financial and personal information and has agreed with them on their goals. Under the Practice Standards for the financial planning process, what is the NEXT step?

Which of the following is one of the six principles in CFP Board's Code of Ethics?

A mutual fund wholesaler offers a CFP professional an all-expenses-paid week at a beach resort for her and her spouse. The wholesaler's funds are among those she recommends to clients. What should she do?

A CFP professional has narrowed a client's choice to two bond funds with the same holdings, risk and manager quality. Fund X costs 0.15% a year; Fund Y costs 0.85% a year and pays the CFP professional a trail commission. Which recommendation BEST meets the duty of loyalty?

A client holds 40% of his portfolio in his employer's stock. His CFP professional recommends reducing it, but the client says he will keep every share because he believes in the company, and the instruction is lawful. What should the CFP professional do?

A CFP professional receives a private censure from CFP Board after a hearing. Which statement BEST describes what this sanction means?

A married client applies for a car loan in her own name and qualifies on her own income and credit. Which action by the lender would MOST likely violate the Equal Credit Opportunity Act?

A client finds a late payment on her credit report for a loan she paid on time every month. What is the MOST appropriate first step under the Fair Credit Reporting Act?

A third-party debt collector calls a client every day about an old medical bill. The client sends the collector a letter asking it to stop contacting her. Under the Fair Debt Collection Practices Act, what must the collector do?

A client receives a privacy notice from her bank saying it may share her personal financial information with an unaffiliated marketing company. Under the Gramm-Leach-Bliley Act, what right does she have?

A client bought a stock mutual fund from a representative in her bank's branch and believes the fund is FDIC insured because she bought it at the bank. Which statement is correct?

A married client has three accounts at one FDIC-insured bank: a $200,000 checking account and a $150,000 CD, both in her name alone, and a $300,000 joint savings account with her husband. How much of her money is NOT covered by FDIC insurance?

A broker-dealer fails and client assets are missing. A client's account held $150,000 of securities and $320,000 of cash. Assuming nothing is recovered from the firm's estate, how much SIPC protection does the client have?

A planner sets up an advisory firm in one state that regulates investment advisers. The firm will manage $40 million of client assets for fees and has no other basis for SEC registration. Where must the firm register?

A registered investment adviser is about to sign an advisory agreement with a new client. When must the firm deliver its Form ADV Part 2 brochure to the client?