CFP Ethics Questions
Practice Standards 400-2 series relates to which aspect of the CFP Board Code of Ethics and Professional Responsibility? A. Recommendations B. Confidentiality C. Professionalism D. Diligence
A
Should a comprehensive financial plan address all of the major planning areas as they relate to the client? A. Yes B. No
A
The certificant shall enter into a written agreement governing the financial services ("Agreement"). The Agreement shall specify which of the following? I. The services to be provided as part of the Agreement II. The date of the Agreement and its duration III. How and on what terms each party can terminate the Agreement IV. The parties to the Agreement A. All of the above B. I, II, IV C. I, III D. II, III
A
The written disclosures under Rule 2.2 can be made in which way? I. Disclosure using the Form ADV II. Disclosure under the rules or requirements of any self-regulatory organization III. Disclosure using multiple written documents IV. Disclosure used in compliance with state or federal laws A. All of the above B. II, IV C. III, IV D. III
A
When can a CFP® certificant reveal confidential information? I. To comply with the legal process even if it causes irreparable harm to the client II. With the client's consent III. To defend the CFP® certificant against charges of wrongdoing IV. In connection with a civil dispute between a CFP® certificant and a client A. All of the above B. II, III, IV C. I, IV D. II, III, IV E. II, III
A
Which of the following is not a form of public discipline that the CFP Board may impose? A. Censure B. Letter of admonition C. Suspension D. Revocation
A
Under the CFP Board's Financial Planning Practice Standards, which of the following actions must take place prior to providing any personal financial planning services? I. The CFP® certificant shall obtain sufficient and relevant quantitative information and documents applicable to the scope of the engagement and the services being provided. II. A client's personal and financial goals, needs, and priorities relevant to the scope of the engagement and the services to be provided shall be mutually defined by the financial planning practitioner and the client. III. The scope of the engagement shall be mutually defined by the financial planning practitioner and the client. IV. An engagement letter covering the services to be provided must be signed by both the financial planning practitioner and the client. A. I, II, III B. II, IV C. I, III, IV D. I, II
A An engagement letter, while advisable and recommended, is not required. The client does not have to sign the letter.
Which of the following are true about defining the scope of the engagement between the planner and the client in the first step of the financial planning process? I. It is the range of services that the planner and the client agree is appropriate and that the financial planner is qualified and willing to provide. II. It can be segmented financial planning. III. It must be in writing. IV. It can be revised by mutual agreement. A. All of the above B. I, II, IV C. I, II D. I, IV
A Answer II is true. It can be limited to a specified area or areas (segmented). The scope of engagement must be in writing.
During the analyzing and evaluating step (Practice Standard 300) of financial planning, which of the following would likely occur? I. Development of a statement of financial condition II. Identification of strengths and weaknesses III. Identification of goals and objectives IV. Identification of recommendations on investments A. I, II B. I, II, IV C. II, III D. IV
A Answer III is wrong. Identifying goals is part of the data gathering Standard. Answer IV is wrong. Making recommendations on investments is part of the developing and presenting planning recommendations Standard.
Tim Fox has just passed the CFP® Certification Examination. Tim wants to include the CFP® marks as part of a new business entity. A. The CFP Board does not allow CFP® certificants to use its trademarks with a business name. B. The entity could be Tim Fox, CFP®, LLC. C. The entity could be Tim Fox Certified Financial Planner TM, Inc. D. The entity could be Tim Fox, Certified Financial Planner.
A If a person is allowed to use the CFP® marks in a business name but then becomes uncertified, the public will likely continue to think the person is still certified by the CFP Board.
How do ethics rules differ from practice standards? I. While the ethics rules require a CFP® certificant to attain and maintain competence, they do not specify the minimum requirements for providing financial planning services as that is a rule in practice standards. II. They are interchangeable. A. I B. II C. I and II D. Neither I or II
A If they were interchangeable, they would be equivalent. Therefore, they wouldn't be different.
Does a CFP® professional who is not providing financial planning or using the financial planning process need to provide clients or prospective clients with written disclosure documents? A. No, the professional is not required to give clients or prospective clients those disclosures in writing unless they are providing planning services or material elements of financial planning. B. Yes, as a CFP® professional you need to present to a client written disclosure documents. C. No, written disclosure documents would only confuse the services the professional is providing. D. Yes, it is recommended practice for the CFP® professionals to provide disclosures in writing.
A Taken directly from the frequently asked question material.
Which of the following is a true statement with regards to material information relative to the professional relationship with the client? I. Disclosure of material information relative to the professional relationship must be written. II. The exact amount of overall compensation in conjunction with a particular engagement must be disclosed. A. I B. II C. I and II D. Neither I or II
A The exact amount of overall compensation does not have to be disclosed. It can be an estimate.
Can a CFP® practitioner sue the CFP Board? A. No, they have to go to arbitration B. No, never could sue a non-profit organization C. Yes, the CFP Board is a business D. Yes, as a class-action suit
A This is the new mandatory arbitration clause.
Which of the following is a false statement? A. The Code of Ethics and Professional Responsibility provides principles and rules to all persons the CFP Board has recognized and certified to use the CFP® certification mark. B. The Code of Ethics and Professional Responsibility does not apply to individuals who have been certified in the past and retain the right to reinstate their certification without passing the CFP® Certification Examination. C. A person recognized and certified by the Board to use the marks CFP® and CERTIFIED FINANCIAL PLANNER™ is called a CFP® certificant or CERTIFIED FINANCIAL PLANNER™ certificant. D. The Code of Ethics and Professional Responsibility impose a fiduciary obligation on all CFP® certificants by virtue of having earned the designation.
Answer B is true because it refers to registrants (PER - Professional Eligible for Reinstatement). Registrants are subject to the candidate fitness standards, not the Code of Ethics (Picky). The Standards of Professional Conduct apply to PERs when the conduct at issue occured at a time when the PER was certified. Answer D is false. The Standards require that all CFP® professionals who provide financial planning services will be held to the duty of care of a fiduciary, as defined by CFP Board. Since some CFP® professionals are not involved in providing financial planning services to clients, it would be inappropriate to hold these individuals to a duty of care that may not apply to their professional activities. See FAQs on Fiduciary on CFP.net.
A ______ is a written reproach that may be published in a press release or other form of media unless there are mitigating circumstances. A. Private censure B. Public letter of admonition C. Suspension of rights to use the Marks D. Revocation of the rights to use the Marks
B
Competence is Principle ____ of the Code of Ethics. A. Principle 2 B. Principle 3 C. Principle 4 D. Principle 5
B
Practice Standard 200-1 refers to which of the following? A. Establishing and defining the relationship with the client B. Gathering client data C. Analyzing and evaluating the client's financial status D. Developing and presenting the financial planning recommendations
B
Unless the client has changing needs or circumstances, with what frequency should the advisor meet with the client to review his/her plan? A. Every 6 months B. As mutually defined C. Once every 2 years D. Once every 3 years
B
What is Practice Standard 600 of the financial planning process? A. Implementing the plan B. Monitoring the plan C. Presenting financial planning recommendations D. Selling the client products
B
Which of the following is a Principle of the CFP Board of Standard's Code of Ethics and Professional Responsibility? A. Continuing Education B. Diligence C. Discipline D. Disclosure
B
Which of the following is not an approved noun to be used with the CFP® marks? A. Professional B. Representative C. Certificant D. Practitioner
B
In determining whether a financial planning engagement exists, CFP Board considers the circumstances involved and, in particular, the following factors, EXCEPT which of the following? A. The client's understanding and intent in engaging the CFP® professional B. The compensation model agreed upon, fee only vs. commission or salary based C. The degree to which multiple financial planning subject areas are involved D. The comprehensiveness of data gathering E. The breadth and depth of recommendations
B CFP Board does not use the compensation model as a determining factor when identifying whether a financial planning relationship exists. CFP Board does not advocate any particular business model or compensation arrangement. Compliance with the Standards is possible for both CFP® professionals with fee-based practices and those who are commission or salary-based.
A local businessperson approaches a CFP® certificant for assistance with an investment-related tax problem. The client's previous tax preparer suggested the purchase of a variety of tax-advantaged investments to reduce the client's current and future tax burden. Time passed, the client's income dropped, and tax laws changed. The client does not believe the tax preparer misrepresented the situation on the initial sale but still wants to know what recourse is available with respect to the tax preparer. The CFP® certificant should do which of the following? I. Explain to the client that this issue is beyond the scope of the CFP® certificant's professional expertise II. Advise the client that no recourse is available III. Advise the client to contact an attorney IV. Contact the tax preparer A. IV B. I, III C. II, IV D. I, II, III
B Statement I applies because there is no indication that the CFP® practitioner has tax expertise.
Mr. and Mrs Hall have engaged you to review their financial planning. In reviewing their 1040 tax return, you notice it includes significant errors. What should you do? A. File an amended return for the clients B. Advise the clients to see their tax preparer to make corrections and consider withdrawing from the engagement C. Ignore the errors since you did not prepare the return D. Advise the clients to hire an attorney to sue their tax preparer
B The issue is beyond the scope of the financial planning professional. Unless it states the professional is a CPA, the financial planner should tell the clients they should seek professional help. (Reference CFP Board's Standard of Professional Conduct Principle 3 - Competence)
In establishing and defining the relationship that will develop between a financial planner and a client, which of the following is/are among the planner's obligations? I. Identifying the services to be provided II. Describing how the planner will be compensated III. Deciding on the time frame of the agreement IV. Having the client sign a written agreement A. All of the above B. I, II, III C. II, III, IV D. II, IV E. III, IV
B A client does not have to sign a written agreement.
Can a financial planner be sued for failing to deliver services or plans required by a written agreement with a client? A. Yes, it is a contract. B. Yes C. No, it is not a contract. D. No
B Answer A is incorrect. It does not appear to be a contract; no consideration is shown. However, the financial planner can be sued for failing to deliver per the contract (Answer B).
A client is shopping for a financial planner. The client has already provided his full financial information to another financial planner. During the initial interview, the client says he is too busy to review all the information again. What should you do next? A. Try to get all the information from the other financial planner B. Explain the services you provide, the process of planning, and the documents required to do a complete financial plan C. Decline the client D. Try to work with the other financial planner on a joint engagement with the client
B Answer B is the first step in the financial planning process. If the client will not complete the first step (Answer B), then decline the client (Answer C) but go through the first step before you decline the potential client.
In rendering professional services, a CFP® certificant shall disclose to the client which of the following material information relevant to the professional relationship? I. Conflict(s) of interest(s) II. Changes in business affiliation III. Changes in firm's banking affiliation IV. Compensation structures A. I, II, III B. I, II, IV C. I, II D. I, IV E. III
B The firm's banking affiliation (where the firm has its bank account) should not affect the client unless it presents a conflict of interest.
Practice Standards 600 Series (monitoring) defines monitoring responsibilities. Which of the following statements is true? A. The monitoring process should occur at least annually. B. The financial planning practitioner and client shall mutually define the monitoring responsibilities. C. The monitoring process should be triggered by a changing client situation. D. The financial planning practitioner and client should review the plan applicability at least every 6 months.
B This is the practice standards answer. There is no time given. Answer C may apply, but how does the financial planner know the client's situation changed?
Keith Williams, CFP® just changed broker-dealers and moved his office across town. Now he lives closer to his home. Does he have to inform the CFP Board of his change of address? A. No, his home address and telephone number are unchanged. B. Yes, but only if his internet address changed. C. Yes, within 45 days. D. Yes, when his annual registration to renew his certification with the CFP Board comes up.
C
Sally Towns has approached you, a CFP® professional. After you explained the six steps in financial planning, she said she only wanted to do the first four steps. Can you enter into a written agreement to limit the engagement to the first four steps and then end it? A. No, as a CFP® professional you have to couple to the six steps. B. No, the written agreement has to spell out the six steps. C. Yes, the written agreement can be limited. D. Yes, but your obligation would continue into step 5 and 6.
C
Which of the following statements is false? A. The Principle of Fairness requires impartiality, intellectual honesty, and disclosure of conflict(s) of interest. B. A CFP® certificant must safeguard the confidentiality of client information. C. The CFP® certificant may never release client information to a third party. D. Confidentiality is a key ingredient in creating a relationship of trust and reliance between a client and a CFP® certificant.
C
Which of the following statements is true? I. A CFP® certificant may not commingle client funds with the funds of the financial planning firm. II. Client funds can be commingled in a common client investment account with permission and adequate record keeping. A. I B. II C. I and II D. Neither I nor II
C
The CFP Board's Code of Ethics defines standards of professional conduct of the CFP® certificant for purposes of civil liability. A. True B. False C. The Code of Ethics does not address civil liability.
C Answer C is a better answer than Answer B. The Code of Ethics does not undertake to define professional conduct for purposes of civil liability.
Sam Jones, a CFP® certificant, is trying to obtain all the necessary information to fulfill his obligation to the prospective client. The client has refused to answer pertinent questions. Sam should do which of the following? A. Decline the client B. Prepare the plan C. Inform the prospective client of any and all material deficiencies D. Proceed with the interview to hopefully get answers to the pertinent questions
C This is Rule 3.3.
A financial planner who is also a registered investment adviser may have which of the following printed on his/her business card? A. A. J. Reynolds, CFP®, RIA Registered Investment Adviser B. A.J. Reynolds,CERTIFIED FINANCIAL PLANNER® Registered Investment Adviser C. A.J. Reynolds, CFP® Registered Investment Adviser D. A.J. Reynolds, C.F.P.®, Registered Investment Adviser
C CFP™ is not acceptable. Answer A is wrong because of RIA. Answer B is wrong because CERTIFIED should have a ™ after it not a ®. Answer D is wrong because of the periods. C.F.P.® is not correct; it is CFP®.
According to the CFP Board, a CFP® professional shall act in utmost good faith, in a manner he or she reasonably believes to be in the best interest of the client. While in the course of developing and presenting recommendations, this philosophy would include which of the following solutions? I. Suggesting that the client maintain his/her current course of action II. Consideration and documentation of alternatives to the client's current course of action and presentation of cost benefit analysis for each potential solution. III. Documenting how existing and proposed courses of action are designed to meet the client's goals and objectives IV. Offering only solutions that are part of the products offered by broker-dealer or parent company A. I, II B. II, III C. I, II, III D. II, III, IV E. All of the above
C Directly from the 8/8/13 notice to CFP® professionals: Planners should conscientiously maintain objectivity when preparing and making recommendations to clients. Maintaining the fiduciary standard should take precedence over possible financial gain for the planner. If the client has an effective plan, leave it alone (I). Review of all reasonable alternatives, preparation of an effective course of action, and discussion of both existing and alternative plans is part of the recommendation process. (II, III) Offering and recommending products that you sell is fine, as long as they meet the client objectives and the client is aware of the arrangement.
Which of the following is a false statement? I. A CFP® certificant does not have to continue to learn and improve professionally once the CFP® designation is earned. II. A CFP® certificant must have an advanced degree in the area of services being provided to meet the competency requirements.
C 30 hours of CE is required during each 2 year period.
A financial planning practitioner shall make a timely written disclosure of all material information. Which of the following should be included in the written disclosure? I. Principles of financial planning which will be utilized by the CFP® professional II. The exact amount of the CFP® professional's overall compensation III. Educational background IV. Forms of economic benefit from related parties A. All of the above B. I, II, IV C. I, III, IV D. II, III, IV E. II
C A statement of compensation can use estimates and can be based on reasonable assumptions.
Does the Code of Ethics apply to candidates for the CFP® Certification (have not passed the test yet)? A. No B. Yes C. No, they have not met all of the certification requirements. D. Yes, it applies to candidates who are registered as such with the CFP Board.
C Answer C is a better option than Answer A.
Which of the following is a true statement? I. Disclosure of material information relative to the professional relationship must be written. II. Referral fees received, since not paid by the client, do not have to be disclosed. III. There is no need to state the CFP® certificant's principles of financial planning in the CFP® certificant disclosure form. IV. A CFP® certificant disclosure form should include the CFP® certificant's educational background and employment history. V. It is not necessary to list professional designations and licenses held on the CFP® certificant's disclosure form. A. I, II, IV, V B. I, III, IV C. I, IV D. III, IV, V E. II, V
C Answer II, III, and V are false.
A certificant shall disclose to a prospective client or client an accurate and understandable description of the compensation arrangements being offered which must include which of the following? I. Information related to costs and compensation to the certificant and/or the certicant's employer. II. Terms under which the certificant and/or the certificant's employer may receive and other sources of compensation, and if so, what the sources of these payments are and on what they are based. A. I only B. II only C. Both I and II D. Neither I nor II
C Both I and II are correct. Under the CFP Board's Rules of Conduct, CFP certificants are required to disclose compensation to prospective and current clients. The key rules include that the certificant shall provide/disclose:
Eddie, a CFP® practitioner in Florida, has taken on a new client for some insurance work. For a flat fee, the client has hired Eddie to review his existing life policy and make any recommendations. The policy had been sold to him on the basis of making up the shortfall in projected retirement income on a tax-free basis. What standard of care is Eddie held to in this situation? A. Best practices; he is only doing segmented insurance work. B. Suitability; he only has to tell the client whether or not the policy is suitable for his goals. C. Fiduciary; he is doing material elements of financial planning. D. Fiduciary; he is being paid a fee for his advice.
C In order to answer the client's question, Eddie has to first review the existing projections of retirement income; evaluate the sufficiency of these projections; evaluate the potential of the insurance policy as an income source; and make a recommendation. These are Steps 2 - 5: Gather information; process the information; make a recommendation; and communicate the recommendation.
A CFP® certificant has obligations to which of the following? I. SEC II. Prospective client III. Employers IV. CFP Board A. All of the above B. I, IV C. II, III, IV D. IV
C Rules 4, 5, and 6
As part of the monitoring step you have gathered new data from an existing client. Please analyze and evaluate what is the client's highest reason to change the existing plan to the least reason to change the plan you established a year ago. I. The wife was fired from her job. No reason was given. II. The company he owns just filed a 1120 corporate return showing a $1 million loss. III. His earnings dropped by one-half. IV. His son just was accepted into a private grade school (pricey). A. I, II, III, IV B. II, III, IV, I C. III, II, I, IV D. III, I, IV, II
C The least reason is Answer IV. Although his wife being fired is important, right now his earnings and business seem to be the highest reason. Somewhat subjective.
What is a responsibility of a client? A. To take his or her obligations seriously B. To demostrate an appropriate level of knowledge C. To have realistic goals D. To keep financial information confidential
C The other answers are responsibilities of the financial planner.
Larry Young has been referred to you by a client. Your client called you and pleaded with you to do a plan for Larry. During the conversation with your client you find out Larry has already frustrated two financial planners. You finally agree to see Larry. At the scheduled meeting, Larry arrives with financial statements, insurance policies, and tax forms. You have everything you need to do a complete financial plan. As you proceed into the scope of engagement Larry indicates he only wants a retirement plan projection. He is very firm about that, so you agree. Now, one week later, he called to say he changed his mind and wants a high-risk investment plan proposal. As you talk with him on the phone about the change, he says, "OK, do a complete plan." How should you proceed? A. Do a complete plan B. Terminate the relationship C. Prepare a new written agreement defining the new scope of engagement D. Schedule a meeting in one week to present the plan
C You have to go back to Step 1 and redefine the scope of engagement. The problem with Larry is he cannot make up his mind. On the basis Answer D is not bad.
Which of the following is not a prescribed form of discipline for a CFP® practitioner? A. Private censure B. Public letter of admonition C. Permanent revocation of the rights to use the CFP® marks D. CFP® Certification Examination retake
D
You have proof that a CFP® certificant has commingled client funds with the CFP® certificant's personal funds. Those funds were used for his wife's drug rehab problem. The rehab was not covered by insurance. Over drinks he told you his problem with his wife and that the funds have been repaid. What should you do? A. Nothing B. Hold his hand C. Confront the CFP® certificant D. Alert the appropriate regulatory authorities including the CFP Board
D
Ted Williams hired you (a CFP® practitioner) to help sell his collection. He sold it for $25 million. A couple of years have gone by and he calls you to assist him in his personal financial planning. What is your next step? A. Find out what happened to the $25 million B. Allocate his investments to create a better marginal tax bracket C. Consider a charitable remainder trust (CRT) D. Re-establlish and define the client-planner relationship
D This is a new scope of engagement question (Step 1). The prior scope of engagement was the selling of his collection. Answers A, B, and C pertain to steps 2-4.
Tim Owens, age 65, is divorced. Since his divorce you are handling his investments. His wife decided to use another advisor. Tim is difficult, always complaining about the fee for advice. You, a CFP® practitioner, are charging him your lowest fee, which is normally for more wealthy clients. Today he showed up with his 1040 tax return with various tax schedules. He wants you to review it. Before you can answer he says "for free". He feels it should be included in the fee he is already paying. What should you do? A. Terminate the relationship, free is unacceptable. B. Tell Tim reviewing his tax return is not part of your mutual agreement to provide services. C. Ask Tim for permission to talk to his CPA about the 1040 return. D. Tell Tim you will review the tax return and come back with an answer.
D You should only terminate the relationship if the client is doing something illegal or asking you to do something illegal. There is no indication that you are a tax specialist (Answer D). Answer B is not bad. Going to the source of Tim's concern allows you to review the return with a tax specialist.
In establishing and defining the relationship that will develop between a financial planner and a client, which of the following is not among the planner's obligations? A. Identifying the services to be provided B. Describing how the planner will be compensated C. Deciding on the time frame of the engagement D. Having the client sign a written agreement
D A client does not have to sign a written agreement. However, a written disclosure of all material information relative to the professional relationship must in be in writing (Answers A, B, and C).
A prospective client calls and tells you that a mutual fund she is considering purchasing will pay a huge capital gain in a few weeks. What questions should you, as a planner, ask this client at this point? I. What is her date of birth? II. What are her investment objectives? III. What other investments does she have? IV. Will she take the capital gains in cash or reinvest? V. What is her investment experience? A. I and II B. II and III C. IV D. All of the above
D All the questions are important. For a new client, all questions are part of data gathering.
In the implementation step of the financial planning process, the responsibilities of the planner do not include which of the following? A. Coordinating with other professionals B. Determining the division of activities between the financial planner and the client C. Sharing information as authorized D. Mutually defining goals and objectives that are realistic and achievable
D This is quantitative and qualitative information that is developed in Step 2.
Activities that CFP Board would likely consider to be material elements of financial planning include which of the following? I. Providing investment advisory services as defined by the applicable State or Federal regulators II. Fact-finding to meet regulatory requirements for suitability such as the "Know Your Customer" rules III. Providing brokerage and/or insurance products or services IV. Completing tax returns without providing any other financial services V. Opening an account or completing an application A. All of the above B. I, II C. II, III, V D. I E. None of the above
D Under CFP Board's definition of "financial planning", as found in the Standards, CFP® professionals are able to determine when they are providing services using the material elements of financial planning by considering, among other things, the degree to which multiple financial planning subject areas are involved. However, it is possible that a financial planning engagement may exist when a single subject area is involved. Providing investment advisory services would likely rise to the level of financial planning because of the expansiveness of the financial considerations involved.
In regards to the CFP® Certification marks, which of the following can be used? I. Certified Financial Planner™ II. CFP™ practitioner III. C.F.P.® designee IV. CFP® certificant A. All of the above B. I, IV C. II, III, IV D. II, III E. IV
E Answer I should be CERTIFIED FINANCIAL PLANNER™. Answer II CFP™ is prohibitied. Answer III should be CFP® (no periods).
Linda Evans, a CFP® practitioner, has been referred a female client who just went through a messy divorce. The client, Abby Henry, indicated in the initial interview she just wanted money strategy advice on the divorce settlement. Linda scheduled the second meeting. Abby was instructed to bring in all the financial data. At the scheduled second meeting Abby came with a young very handsome guy. Abby introduced him as her financial advisor. As Linda starts to proceed, the advisor interrupts her to tell her that all the money is being moved to his broker-dealer. What should Linda do? A. Terminate the relationship B. Try to work with him C. Ask him to leave the room, he is not the client D. Ask for an outrageous fee to proceed E. Try to figure out if there is any real scope of engagement to continue to advise Abby.
E The CFP Board really likes answers that show practitioners try to work with clients. She should try to assist Abby before terminating the relationship.
Does the CFP Board require CFP® professionals to address a certain number of subject areas for the engagement to be considered financial planning? A. It may exist even when a single subject area is involved. B. Applying the financial planning process to a single subject area is not likely to be considered financial planning or material elements of financial planning. C. Only when the financial planning integrates multiple planning areas. D. Only when the financial planner integrates subject areas into the steps of the financial planning process.
It is a broader, more simple answer found in the frequently asked questions. For example, a financial planning engagement may exist when a client requests a comprehensive retirement plan or requires a complex estate plan. This is their material. The other answers are good answers.
Question 25 It is unusual that referred clients are not cooperative, but Tess is Tess the Terrible. On every recommendation she looks at you in the eye. She makes comments like, "You're just trying to make money off me because I'm a woman", and "This investment sounds like a conflict of interest." She even curses at you and your assistant. What can you do? A. You can suggest alternative strategies to Tess. B. You can suggest Tess talks to another planner in the office. C. You should terminate the relationship in a nice way. D. You have no choice but to proceed because this is a referral client.
The scope of the client relationship must be mutually acceptable to both the client and planner. You are doing your best and it is not acceptable, you should terminate the relationship. Answer B means you will encounter her in the future. She may continue to be negative about you. Answer D is tough.
