Certified Financial Planner (CFP) Exam 2026 – 400 Free Practice Questions to Pass the Exam

Accepting an engagement from a firm where a relative has a limited partnership interest requires careful consideration of potential conflicts of interest. The correct course of action is to ensure that proper disclosure is made regarding the relationship and the interest your sister holds. Disclosure is a key principle in maintaining transparency and trust in the advisory process. By informing your clients and relevant parties about this relationship, you manage the risk of perceived or actual bias in advice or decisions related to the firm.

This approach aligns with ethical standards that govern CFP® professionals, highlighting the importance of transparency while also respecting familial relationships. Engaging in the partnership only after proper disclosure allows clients to make informed decisions and preserves the professional integrity of the financial planning process.

In this context, while integrity and objectivity are critical considerations in the advisory role, the act of disclosure serves to mitigate any concerns that may arise from the familial connection. It's also important to have policies or procedures in place to address potential conflicts if they arise during the engagement.