CFP Practice Questions – Professional Conduct and Regulation

cfp certified financial planner

Ignoring the format of the CFP exam will lead to an unusual consequence. You will find that CFP questions cause anxiety, which in turn, negatively impacts your exam performance. It is usually beneficial to clearly understand the CFP question pattern, as uncertainty regarding the pattern will diminish your confidence.

Solving CFP practice question papers help keep you up to date on the question pattern. This will assist you in being ready to respond to any CFP questions that may be asked during the exam. Here we are providing you with ten sample CFP Practice questions from the subject – Professional Conduct and Regulation based on the latest trends and patterns.

Q 1. A CFP® professional is prohibited from soliciting or accepting any gift, gratuity, entertainment, non-cash remuneration, or other anything that may reasonably be anticipated to undermine the CFP® professional’s neutrality. This is a definition from which of the following principles of the CFP® Code of Ethics?
A. Disclose and Manage Conflicts of Interest
B. Sound and Objective Professional Judgment
C. Duties When Representing Compensation Method
D. Borrowing or lending money, as well as mixing financial assets, should be avoided
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Q 2. A CFP® professional may not intentionally or recklessly participate or assist in another person’s violation of these Standards or the laws, rules, or regulations governing Professional Services. Which of the following principles in the CFP® Code of Ethics is this a definition of? 
A. Comply with the Law 
B. Duties When Representing Compensation Method
C. Disclose and Manage Conflicts of Interest
D. Duties When Communicating With a Client
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Q 3. Roger aspires to be a Certified Financial Planner (CFP®). Which of these would not prevent him from achieving his goal? 
A. Two or more personal bankruptcy
B. A federal tax lien on property
C. An arrest for public intoxication 
D. A felony conviction
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Q 4. Following a CFP Board designee’s name in advertising, letterhead, or business cards with RIA or R.I.A. may be deceptive and is not permissible, according to the Principle of_______. 
A. Objectivity
B. Professionalism
C. Fairness
D. Diligence
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Q 5. Freddy, a Certified Financial Planner, works at ABC Investments, a Registered Investment Advisor. Al and Marty Rome, two of Freddy’s patrons, are 97 and 94 years old, respectively. The Rome’s have given Harris, a family acquaintance, Power of Attorney over their finances. Mr. and Mrs. Rome’s Powers of Attorney are on file at ABC Investments. Which scenario best depicts Mr. Freddy’s responsibilities in terms of confidentiality and privacy, according to the CFP® Board’s Code of Ethics and Standards of Conduct? 
A. Mr. Freddy may discuss the Rome’s investments and his investment recommendations with Mr. Harris.
B. Mr. Freddy must not communicate with Mr. Harris unless either Mr. or Mrs. Rome is included in the communication.
C. Mr. Freddy must notify CFP® Board of the Powers of Attorney on file in his office before discussing the Rome’s investments with Mr. Harris.
D. Mr. Freddy may not discuss any investment recommendations or decisions with Mr. Harris.
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Q 6. How many days must a customer be given notice before an interest rate rise under the Credit Card Accountability, Responsibility, and Disclosure Act? 
A. 7 days
B. 30 days 
C. 45 days
D. 90 days
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Q 7. What should a CFP® Board designee do if he or she suspects another CFP® Board designee of breaking the Code of Ethics? 
A. Do not tell anyone 
B. Immediately inform the CFP® Board
C. Open an investigation into the CFP® Board designee in question 
D. Inquire with the CFP® Board designee about what happened and why. 
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Q 8. Mrs. Watson met with a CFP® practitioner eight years ago and implemented the planning. The planner has not contacted her since. This planner is most likely failing in which aspect of the Practice Standards?
A. Presenting the Financial Planning Recommendation(s)
B. Identifying and Selecting Goals
C. Understanding the Client’s Personal and Financial Circumstances
D. Monitoring Progress and Updating
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Q 9. If grounds for punishment have been proven against a CFP Board designee, which of the following is not a type of discipline that the CFP Board can impose?
A. Require additional continuing education hours in any subject matter areas separate from, or in addition to, any form of discipline.
B. Issue a public letter of admonition.
C. Permanently revoke the right to use the CFP® mark.
D. All of the above are possible forms of discipline.
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Q 10. Which of the following is not part of the Duty of Loyalty under Fiduciary Duty?
A. Place the interests of the Client above the interests of the CFP® professional and the CFP® Professional’s Firm.
B. CFP® professional must act with the care, skill, prudence, and diligence that a prudent professional would exercise in light of the Client’s goals, risk tolerance, objectives, and financial and personal circumstances.
C. Avoid Conflicts of Interest, or fully disclose Material Conflicts c of Interest to the Client, obtain the Client’s informed consent, and properly manage the conflict.
D. Act without regard to the financial or other interests of the CFP® professional, the CFP® Professional’s Firm, or any
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Knowing the CFP Exam format will also give you a sense of the topic-by-topic weightage of the marks. When you know how much each topic weighs, you can schedule a time to prepare and revise the CFP topics properly. Our CFP® Prep App assists you in prioritizing the topics for your future study schedule. CFP Exam Prep By Achieve provides the latest layout of the exam that may help you organize your approach in answering the CFP Financial Planner questions.