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33 Cards in this Set
- Front
- Back
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Principles of Financial Planning |
1. Fairness 2. Integrity 3. Client First 4. Competence 5. Confidentiality 6. Professionalism 7. Objectivity 8. Diligence |
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Questions relating to a financial planner demonstrating fairness |
1. Planner discloses information regarding client relationships with third parties 2. Addressing conflicts of interests 3. Providing a reference upon the client's request |
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Keywords associated with Fairness
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-Impartiality and intellectual honesty -Written disclosure of conflicts of interest, compensation, employment relationships, changes in circumstances -Human rights |
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Questions relating to a financial planner demonstrating integrity |
1. Being honest to the client 2. Being honest in terms of the skills and areas of expertise 3. Advertising skills and areas of expertise in newspaper only |
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Keywords associated with Integrity |
-Fraud, candour, deceit
-Property of clients -Keep records -Commingling of client funds -Soliciting clients -Misleading areas of competence |
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Questions relating to a financial planner demonstrating competence |
1. CFP Professional cannot be a mediator or a facilitator 2. CFP Professional cannot answer questions where he/she does not have areas of expertise or knowledge 2. Continue to meet your professional obligation of acquiring your CE credits |
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Keywords associated with Competence
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-Level of knowledge -CE requirements -Keep informed -Know limit - referrals -Personal affairs of clients - outside scope of relationship |
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Questions relating to a financial planner demonstrating confidentiality |
1. Providing private information only with your client's consent 2. Do not use client's private information for your own benefit (i.e insider trading) |
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Keywords associated with Confidentiality |
-No disclosure unless consent -No personal benefit -Employer's information -May provide references with consent -Act in good faith with partners |
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Questions relating to a financial planner demonstrating professionalism |
1. A CFP licensee should follow criticism from another CFP licensee 2. Promptly providing the client with the client material upon the client's request |
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Keywords associated with Professionalism
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-Reputation of the profession -Report code violations to FSPC -Report fraud, illegal conduct to regulators -Written criticism to another CFP -Follow the laws |
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Keywords associated with Objectivity |
-Intellectual honesty and impartiality -Prudent judgment -Act in interest of client |
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Keywords associated with Diligence
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-Prompt and thorough manner -Client engagement -Suitable recommendations -Due diligence on recommendations -Ceasing to act for a client -Supervisory duties |
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CFPs and CE Credits |
1. CFPs do not have to report non-verifiable CE activities 2. 25 CE credits are required -10 credits from financial planning category 3. CFPs can carryover a maximum of 25 verifiable financial planning CE credits to the next calendar year |
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Qualifying CE Credits |
1. Financial Planning Category 2. Practice Management Category 3. Product Category 4. Giving Back Category |
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6 Step Financial Planning Process
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1. Establishing Client Planner engagement 2. Gathering client data and determining goals and expectations 3. Clarifying the client's present financial status and identifying problem areas and opportunities 4. Developing and presenting the plan 5. Implementing the plan 6. Monitoring the plan |
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Establishing client-planner engagement |
1. Explain services provided 2. Clarify client's and planner's responsibilities 3. Planner disclosure (conflicts of interest, compensation) 4. Engagement letter |
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Gathering client data and determining goals and expectations |
1. Obtain information through fact-find 2. Determine client's personal and financial goals, needs, priorities, values and expectations |
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Clarifying the client's present financial status and identifying problem areas and opportunities |
Financial planning needs |
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Developing and presenting the plan |
Develop and prepare client-specific financial plan |
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Implementing the plan |
Assist the client in implementing recommendations |
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Monitoring the plan |
Review progress of the plan |
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Client First |
1. A CFP professional shall always place the client’s interests first. 2. Placing the client’s interests first requires the CFP® professional to act honestly and to place the client’s interests ahead of his own and ahead of all other interests. |
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Integrity |
1. A CFP professional shall always act with integrity. 2. Integrity means rigorous adherence to the moral rules and duties imposed by honesty and justice. Integrity requires the CFP professional to observe both the letter and the spirit of the Code. |
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Objectivity |
1. A CFP professional shall be objective when providing advice and/or services to clients. 2. Objectivity requires intellectual honesty, impartiality and the exercise of sound judgment, regardless of the services delivered or the capacity in which a CFP professional functions. |
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Competence |
1. A CFP professional shall develop and maintain the abilities, skills and knowledge necessary to competently provide advice and/or services to clients. 2. Competence requires attaining and maintaining a high level of knowledge and skill, and applying that knowledge effectively in providing advice and/or services to clients. |
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Fairness |
1. A CFP professional shall be fair and open in all professional relationships. 2. Fairness requires providing clients with what they should reasonably expect from a professional relationship, and includes honesty and disclosure of all relevant facts, including conflicts of interest. |
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Confidentiality |
1. A CFP professional shall maintain confidentiality of all client information. 2. Confidentiality requires that client information be secured, protected and maintained in a manner that allows access only to those who are authorized. A relationship of trust and confidence with the client can only be built on the understanding that personal and confidential information will be collected, used and disclosed only as authorized. |
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Diligence |
1. A CFP professional shall act diligently when providing advice and/or services to clients. 2. Diligence is the degree of care and prudence expected from CFP professionals in the handling of their clients’ affairs. Diligence requires fulfilling professional commitments in a timely and thorough manner and taking due care in guiding, informing, planning, supervising, and delivering financial advice and/or services to clients. |
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Professionalism |
1. A CFP professional shall act in a manner that reflects positively upon the profession. 2. Professionalism refers to conduct that inspires confidence and respect from clients and the community, and embodies all of the other principles within the Code. |
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FPSC Fitness Standards |
Define the character expectations that FPSC has for CFP professionals (i.e. no criminal offences, no license revocation, no violation of FPSC course rules) |
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FPSC Financial Planning Practice Standards |
Provide guidance to CFP professionals when engaged in financial planning activities with clients |
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REGI ASRRII |
PS#1, Explain the Role of the Financial Planner and Value of the Financial Planning Process PS#2, Define the terms of the Engagement PS#3, Identify the Client's Goals, Needs and Priorities PS#4, Gather the Client's Information PS#5, Assess the Client's Current Situation PS#6, Identify and Evaluate the Appropriate Financial Planning Strategies PS#7, Develop the Financial Planning Recommendations PS#8, Compile and Present the Financial Planning Recommendations and Supporting Rationale PS#9, Discuss Implementation Action, Responsibilities and Time Frames PS#10, Implement the Financial Planning Recommendations |
