Quiz Understanding the Financial Planning Certification Exam Part 1 Lesson 2
FPL Lessons Part 1 Lesson 2 Quiz:
1. What percentage of the Financial Planning Certification Exam covers professional conduct and regulation?
a) 5%
b) 7%
c) 10%
d) 12%
2. Which organization enforces the Financial Planning Board’s code of ethics and professional responsibility?
a) Securities and Exchange Commission (SEC)
b) Financial Industry Regulatory Authority (FINRA)
c) Financial Planning Board
d) Internal Revenue Service (IRS)
3. Which of the following is NOT one of the core principles of the Financial Planning Board’s code of ethics?
a) Integrity
b) Fairness
c) Self-interest
d) Professionalism
4. What action might the Financial Planning Board take if a financial planner violates the code of ethics?
a) Issue a warning
b) Revoke certification
c) Provide additional training
d) Increase fees
5. What does Regulation BI stand for?
a) Business Intelligence
b) Best Interest
c) Board of Investment
d) Brokerage Institution
6. Which organization issued Regulation BI in 2019?
a) Financial Planning Board
b) Securities and Exchange Commission (SEC)
c) Financial Industry Regulatory Authority (FINRA)
d) Internal Revenue Service (IRS)
7. What is the primary focus of Regulation BI?
a) Financial planning ethics
b) Best interest of the client
c) Securities trading regulations
d) Taxation policies
8. Which of the following is a duty of financial planning professionals under the code of ethics?
a) Putting their interests ahead of clients
b) Providing biased advice
c) Protecting client confidentiality
d) Ignoring conflicts of interest
9. What type of standard does the Financial Planning Board require financial planners to adhere to?
a) Prudence
b) Loyalty
c) Integrity
d) Compliance
10. What is the primary goal of the Financial Planning Board’s code of ethics?
a) Maximizing profits
b) Maintaining confidentiality
c) Upholding integrity and professionalism
d) Avoiding regulation
11. Which organization enforces rules related to disclosure and compensation?
a) Financial Planning Board
b) Securities and Exchange Commission (SEC)
c) Financial Industry Regulatory Authority (FINRA)
d) Internal Revenue Service (IRS)
12. What type of recommendation does the Financial Planning Board require to be without regard to the interests of anyone but the client?
a) Fiduciary
b) Biased
c) Prudent
d) Disclosed
13. What is one area where the Financial Planning Board and Regulation BI differ in disclosure requirements?
a) Oral disclosures
b) Written disclosures
c) Material facts
d) Conflicts of interest
14. Which organization explicitly requires the client’s interest to come first in recommendations?
a) Financial Planning Board
b) Securities and Exchange Commission (SEC)
c) Financial Industry Regulatory Authority (FINRA)
d) Internal Revenue Service (IRS)
15. What type of duty does Regulation BI primarily emphasize?
a) Prudence
b) Loyalty
c) Care
d) Compliance
16. Which organization issued Regulation BI?
a) Financial Planning Board
b) Securities and Exchange Commission (SEC)
c) Financial Industry Regulatory Authority (FINRA)
d) Internal Revenue Service (IRS)
17. What is one key difference between the Financial Planning Board’s code and Regulation BI?
a) Duty of care
b) Duty of loyalty
c) Disclosure requirements
d) Prudence standard
18. Which organization sets standards for registered representatives?
a) Financial Planning Board
b) Securities and Exchange Commission (SEC)
c) Financial Industry Regulatory Authority (FINRA)
d) Internal Revenue Service (IRS)
19. What action might the Financial Planning Board take if a financial planner violates the code of ethics?
a) Issue a warning
b) Revoke certification
c) Provide additional training
d) Increase fees
20. Which organization enforces rules related to disclosure and compensation?
a) Financial Planning Board
b) Securities and Exchange Commission (SEC)
c) Financial Industry Regulatory Authority (FINRA)
d) Internal Revenue Service (IRS)
Quiz Understanding the Financial Planning Certification Exam Part 1 Lesson 2
Here’s the answer key corresponding to the questions provided:
1. b) 7%
2. c) Financial Planning Board
3. c) Self-interest
4. b) Revoke certification
5. b) Best Interest
6. b) Securities and Exchange Commission (SEC)
7. b) Best interest of the client
8. c) Protecting client confidentiality
9. a) Prudence
10. c) Upholding integrity and professionalism
11. a) Financial Planning Board
12. a) Fiduciary
13. b) Written disclosures
14. a) Financial Planning Board
15. d) Compliance
16. b) Securities and Exchange Commission (SEC)
17. b) Duty of loyalty
18. c) Financial Industry Regulatory Authority (FINRA)
19. b) Revoke certification
20. b) Securities and Exchange Commission (SEC)
End Of Quiz Understanding the Financial Planning Certification Exam Part 1 Lesson 2
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