hard · Certified Financial Planner Psychology
A planner is both a Registered Investment Adviser (RIA) and a Registered Representative of a broker-dealer. She recommends a commissionable life insurance product to a client even though a lower-cost advisory alternative exists.
According to the Code and Standards, which statement is true?
- The planner is a fiduciary and must prioritize the client's interest, disclosing and managing the conflict of interest.
- Because the product is commissionable, the planner is only subject to the suitability standard, not the fiduciary standard.
- The planner must decline the commission and only accept an hourly fee for the recommendation to remain 'fee-only.'
- The fiduciary duty only applies if the planner is acting under her RIA registration for that specific transaction.
Sign up free to see the explanation and track your rank →
More Certified Financial Planner Psychology practice
- Which of the following is true regarding her 2026 catch-up contribution?
- A client in the Okada household has $90,000 in a traditional… — What is the taxable amount
- According to the Crummey Powers heuristic, what is the maximum withdrawal power that can b
- According to the KomFi Academy framework, how should the planner respond to this recency b
- How many total life insurance policies are required to fully fund this specific arrangemen
- According to the CFP Mindset hierarchy, what is the planner's most appropriate first step?
- To avoid triggering a taxable lapse of a power of appointment, the trust document restrict
- What is the correct standard deduction amount they should use?