Sample CFP® Exam Practice Questions – Professional Conduct and Regulation

CFP Exam Questions

Getting familiar with CFP® exam questions is a complementary exercise to ace the CERTIFIED FINANCIAL PLANNER™ Exam. When you practice CFP® exam questions, it enhances your time management skills, and self-confidence, and helps you to become familiar with the exam pattern. This would help you develop an efficient study plan to get good scores in the financial planner exam. Practicing questions can help you cover any knowledge or competency gaps you might encounter during your CFP®  exam preparation.

CFP® Exam Prep by Achieve offers you ten free sample exam questions from the subject – Professional Conduct and Regulation. You can solve these CFP® exam practice questions and analyze which types of questions you are able/not able to solve. Focus on those which you find difficult. This way, you can develop effective strategies for preparation to improve your CFP® exam score.

Q1. Clients, potential Clients, other professionals, and others must be treated with decency, civility, and respect by a CFP® professional. Which of the following CFP® Code of Ethics principles do this define? 
A. Integrity
B. Competence
C. Fiduciary Duty
D. Professionalism 

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Q2. Sara had four credit cards that were taken and illegally used before she noticed and reported them missing. To view the amounts charged to each card, look at the accompanying documentation.Card Expense Amount
1. $2302.
2. $263.
3. $4984.
4. $115
What is Sara’s total liability for these transactions?
A. $176 
B. $869 
C. $230 
D. $613 

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Q3. What is the maximum amount of assets under management that an RIA can have before having to register with the Securities and Exchange Commission? 
A. $50 million
B. $100 million
C. $200 million 
D. $250 million

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Q4. An individual tells clients that he is a Certified Financial Planner®, even though he has not passed the exam yet. Which principle of the CFP® Code of Ethics is this individual breaking?
A. Fiduciary Duty
B. Comply with the Law
C. Integrity
D. Sound and Objective Professional Judgment 

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Q5. Which of the following statements about the CFP Code of Ethics is false? 
A. It contains 15 principles
B. It establishes the professional conduct rules for CFP® Board designees for the purpose of civil liability. 
C. It describes the standards of ethical conduct expected of CFP® Board designees
D. It outlines the expectations of CFP® Board designees in terms of professional responsibility. 

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Q6. According to which of the following, a client must be informed if information from his credit record has been exploited against him?
A. The Code of Ethics 
B. The Truth in Lending Act
C. The Fair Credit Reporting Act 
D. The Securities and Exchange Commission

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Q7. Which of the following is a necessary professional attribute that entails the subordination of one’s own sentiments, biases, and ambitions in order to establish a proper balance of competing interests? 
A. Professionalism
B. Confidentiality
C. Objectivity
D. Fairness 

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Q8. According to which principle of the CFP® Code of Ethics, a CFP® Board designee must give prompt and detailed recommendations to the client?
A. Fiduciary Duty 
B. Diligence
C. Competence
D. Sound and Objective Professional Judgment

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Q9. All client information must be treated with secrecy by a CFP Board designee, with the exception of :
A. When the client violates the relationship first
B. When the client’s investments exceed $100 million
C. When the client’s relationship with the CFP Board designee has terminated
D. To defend against charges of wrongdoing

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Q10. A CFP® Board designee is breaking which principle of the CFP® Code of Ethics by recruiting customers through false advertisements?
A. Integrity
B. Competence
C. Professionalism 
D. Sound and Objective Professional Judgment

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As you have now solved the CFP® exam questions, take a holistic look at the types of questions you were able to solve and MCQs that you found challenging. Then, go back to your study resources and books to gain a better clarity of the concept. Subscribe to the CFP® Exam Prep to solve more such questions.