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

Question: 1 / 505

What significant information must a CFP® professional disclose to a client before providing financial planning?

Ownership in corporations held.

Educational background.

Existence of any active license suspensions.

A CFP® professional is required to disclose significant information that may affect a client's trust and decision-making regarding financial planning services. The requirement to disclose any active license suspensions is critical because it directly pertains to the professional's compliance and ethical standing in the industry. Clients need to be aware of any disciplinary actions or issues that may diminish the professional’s ability to provide sound financial advice, as this can impact the credibility and reliability of the guidance they receive.

This transparency fosters trust between the client and the CFP® professional, as clients should feel confident in the qualifications and integrity of their advisors. Disclosures regarding license suspensions highlight a professional's accountability and commitment to ethical standards in financial planning.

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Tax standing concerning liens.

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