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

In this scenario, the violation pertains to the Duty to Provide Reasonable Supervision. CFP® professionals are required to oversee their subordinates diligently, ensuring that all activities and advice provided align with the fiduciary standard and meet the ethical requirements set forth by the CFP Board. By asking a subordinate to manage and present a financial plan without appropriate oversight, the professional fails to adequately supervise the subordinate's actions.

This duty is crucial because it not only protects clients from potential harm that could arise from inadequate or poorly managed financial advice but also upholds the integrity of the profession as a whole. The expectation is that a CFP® professional should provide guidance, oversight, and support to ensure that any financial plans presented are in the best interest of the clients and adhere to the professional standards.

While the Duty of Confidentiality is also important, in this context, it is the supervision concern that is highlighted as the primary issue. The focus is on the responsibility of the CFP® professional to ensure that their subordinates are acting in a competent and ethical manner when engaging with clients.