Certified Financial Planner (CFP) Exam 2025 – 400 Free Practice Questions to Pass the Exam

The correct answer is that compensation the CFP® professional's other clients receive or are entitled to receive from any association with the CFP® professional is not required when determining compensation disclosure.

Compensation disclosure focuses primarily on the relationship between the CFP® professional and their specific client. This entails detailing how the individual client is compensated, how they pay for services, and the firm’s compensation structure related to the products and services provided. Each client’s understanding of their own costs and the fees associated with their transactions is crucial for transparency and trust.

While disclosure of economic benefits related to referrals or engagements with additional persons is relevant for ensuring comprehensive understanding, what other clients receive is not pertinent to the specific client relationship. The information regarding other clients' compensation can be irrelevant and might not provide the necessary clarity on the client’s own circumstances, which is why it is not a required element in compensation disclosures.