CFP Exam - Process and Ethics

denotes current certificants, candidates for certification, and individuals that have any entitlement, direct or indirect, to the CFP certification marks

exists when a client, based on the relevant facts and circumstances, reasonably relies upon information or services provided by a CFP Board designee using the financial planning process

enotes the process which typically includes, but is not limited to, these six elements: establishing and defining the client-planner relationship, gathering client data including goals, analyzing and evaluating the client’s financial status, developing and presenting financial planning recommendations and/or alternatives, implementing the financial planning recommendations and monitoring the financial planning recommendations

denotes the basic subject fields covered in the financial planning process which typically include, but are not limited to, financial statement preparation and analysis (including cash flow analysis/planning and budgeting), investment planning (including portfolio design, i.e., asset allocation and portfolio management), income tax planning, education planning, risk management, retirement planning, and estate planning

1. Integrity
2. Objectivity
3. Competence
4. Fairness
5. Confidentiality
6. Professionalism
7. Dilligence

101: A CFP Board designee shall not solicit clients through false or misleading communications or advertisements
102: a CFP Board designee shall not engage in conduct involving dishonesty, fraud, deceit or misrepresentation, or knowingly make a false or misleading statements
103: proper handling of funds

201: A CFP Board designee shall exercise reasonable and prudent professional judgment in providing professional services
202: A financial planning practitioner shall act in the interest of the client.

301: A CFP Board designee shall keep informed of developments in the field of financial planning and participate in continuing education
302: A CFP Board designee shall offer advice only in those areas in which the CFP Board designee has competence.

401: disclosure of conflicts of interest and compensation for professional services
402: written disclosure of conflicts of interest and compensation for financial planning engagement
403-409: more stuff having to do with disclosure and fair compensation

501: don't reveal info unless needed for the client, or required by law or to defend oneself
502: confidentiality to employers
503: confidentiality to partners

601: proper use of the CFP marks
602: fair competitive practices
603-605: tattle on your peers who are violating ethics to CFP board
606: perform services within laws of government and cfp board
607: no conduct that reflects adversely on profession
608: registration of investor advisor status and disclosure
609: shall not offer services that not qualified to practice
610: return of client records promptly
611: don't harass other CFPs with code of ethics
612: comply with CFP renewal requirements

701: be diligent
702: provide service only when needed and when expertise exists
703: make/implement needed recommendations
704: reasonable investigation of recommended financial products
705: properly supervise subordinates