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

The action taken by Sean in removing Alice's files without permission constitutes a violation of the Duty of Confidentiality. In the context of financial planning and client relationships, confidentiality is paramount because it encompasses the obligation to protect sensitive information shared by clients.

By removing Alice's files without her consent, Sean not only disregarded her right to privacy but also jeopardized the trust that is fundamental to the client-advisor relationship. This breach of confidentiality can lead to significant repercussions for the client, as personal and financial information may be exposed or misused.

The concept of confidentiality is rooted in ethical standards applicable within the financial planning profession, which require professionals to safeguard client information and only disclose it with proper authorization. Therefore, Sean's actions clearly infringe upon this established ethical principle, demonstrating a significant ethical lapse in his responsibilities toward Alice.

In this scenario, the other options do not adequately capture the specific nature of the ethical breach involved. While there may be elements of fiduciary duty or industry standards implicated, the direct violation relates specifically to the Duty of Confidentiality, highlighting the critical importance of trust and privacy in the client-advisor dynamic.