hard · Certified Financial Planner Estate Planning

A CFP® professional is prohibited from borrowing money from a client unless which of the following is true?

  1. The professional provides the client with a written promissory note and pays a market rate of interest.
  2. The professional obtains informed consent and manages the conflict in the engagement letter.
  3. The loan amount is less than 10% of the professional's net worth.
  4. The client is a member of the professional's family or is an entity in the business of lending money.

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