CORRECT SOLUTIONS. - name: Joni J. Smith, Certified Financial Planner®

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FP 511

CORRECT SOLUTIONS.

Identify corrections to the business card displaying the following

name:

Joni J. Smith, Certified Financial Planner®

• "Certified Financial Planner" must be changed to all capital

letters.b The ™ must be used instead of ®.

• "Certified Financial Planner" must change to "CFP."
• A CFP Board‒approved noun must be added. - correct

answer- "Certified Financial Planner" must be changed to all capital letters and the TM has to be used instead of copyright

Joseph, a licensed attorney, decided to focus more on financial planning and no longer offer divorce advice. As a member of a team of financial advisers, Joseph's responsibilities to his client typically include which of the following?

• Helping the client identify and select financial goals

ii. Drafting a power of attorney for the client iii. Analyzing the client's current course of action iv. Monitoring whether the client is complying with a plan after implementation - correct answer- All of the above - because Joseph is a licensed attorney he can draft legal documents as well

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Identify the responsibilities a CFP® professional must uphold while working with another professional on a client's behalf.

• Communicate with the other professional about the services

each will provide ii. Monitor the professional to ensure their compliance with the Code and Standards iii. Communicate respective responsibilities iv. Inform the client in a timely manner if the other professional did not perform the services in accordance with the scope of services - correct answer- i., iii., and iv. - CFP professionals do not have to monitor the professional to ensure compliance with the Code and Standards

When a client-planner engagement involves Financial Advice for which Financial Planning is required, and the client does not enlist the planner for services, the Planner must abide by

• Fiduciary Duty.

ii. the Code of Ethics.iii. the Practice Standards for the Financial Planning Process.iv. the Suitability Standard. - correct answer- i. and ii - in instances where the engagement involves financial advice that requires financial planning but the client does not enlist the planners services the planners must uphold the fiduciary duty and abide by the code of ethics but the practice standards is not required

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According to the CFP Board's Code and Ethics, under Standards of Conduct that relate to Duties Owed to Clients, which of the following are requirements with which the CFP® certificant must comply?i Make only recommendations that are suitable for the client.ii. Use the CFP® mark in compliance with the rules and regulations of the CFP Board.iii. Exercise reasonable care when supervising persons acting under the CFP® professional's direction.iv. May not make false or misleading representations to CFP Board or obstruct CFP Board in the performance of its duties - correct answer- i. only - while all of those duties are in the code they are not all under duties owed to clients, it is important to read the questions carefully.

For example - the correct use of the CFP mark is found in teh rules related to Obligations to the CFP board not to clients, excercising reasonable care when supervising persons acting under the CFP professionals direction is found in duties owed to firms and subordinates, not to clients

Developing a financial plan often involves input from a team of financial advisors employed by the client. Members of this team may include which of the following professionals?

• A CPA

ii. A banker iii. A private money manager 3 / 4

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iv. An estate-planning attorney - correct answer- All of the above - a team of financial advisors may include all of these professionals, this team might include other professionals as well like a life insurance agent or a property and casualty insurance agent

Bertha, age 55, plans to retire in 10 years. Currently, her cash flow and net worth are steadily increasing as her debt is decreasing. Based on Bertha's current financial life cycle phase, which of the following goals is she is likely to have? - correct answer- - Long term goals such as investing for retirement, Bertha is in the conservation/protection phase. Her goals are likely more long term like investing for retirement income

Analyze the scenario. Ling, a CFP® professional, is providing financial advice to her client. After considering the client's goals, family medical history, tax situation, and financial resources, she develops a financial plan that recommends that the client purchase long-term care insurance. Which statement regarding implementation responsibilities is NOT correct? - correct answer- Ling is not responsible for implementing this planning recommendation because it only involves the purchase of one single product. Ling is responsible for implementing the recommendations unless implementation is specifically excluded from the scope of engagement

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