Question

Which of the following statements concerning the consequences of conduct inconsistent with the CFP Board's Financial Planning Practice Standards is correct?

Answers:      

A. The CFP Board can enforce the Practice Standards against all financial planning professionals.

B. Conduct inconsistent with the Practice Standards creates a presumption that a legal duty was breached.

C. Conduct inconsistent with the Practice Standards gives rise to a cause of action against the financial planner.

D. The Practice Standards do not provide a basis for legal liability of the financial planner.

Answer 1

Which of the following statements concerning the consequences of conduct inconsistent with the CFP Board's Financial Planning Practice Standards is correct?

The correct statement is option D –

D. The Practice Standards do not provide a basis for legal liability of the financial planner.

The consequences of conduct inconsistent with the CFP Board’s Financial Planning Practice Standards do not provide a basis for legal liability of the financial planner. The CFP Board designs a framework for the professional practice of financial planning. It is neither intended to gives rise to a cause of action against financial planners nor to create any presumption that a legal duty was breached. It is also nor enforceable against all financial planning professionals.