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

The correct approach is to disclose conflicts arising during a client engagement when engaging the client or diligently as conflicts emerge. This emphasizes the responsibility of a Certified Financial Planner (CFP) professional to maintain transparency throughout the client relationship. The principle behind this is to ensure that clients are fully informed about any potential conflicts that could affect the advice or services they receive.

By bringing any conflicts to the client's attention as they arise, the CFP professional upholds the ethical standards of the profession, fostering trust and allowing clients to make informed decisions about whether to proceed under those circumstances. This approach highlights the importance of real-time communication and ethical conduct in financial planning.

The other options suggest fixed time frames after which disclosure would occur, which does not align with the expectation of immediate transparency in professional relationships. Conflicts can impact the client’s decision-making, so waiting for a specific number of days could diminish the client’s ability to make informed choices based on the most relevant information.