Certified Financial Planner (CFP) Practice Exam 2025 – All-in-One Study Guide for Exam Success!

Using misleading terms that imply a fee-only relationship would violate CFP® ethical standards because it misrepresents the advisor's compensation structure, potentially leading clients to make decisions based on inaccurate information. The ethical framework established by the CFP Board emphasizes honesty and transparency, particularly regarding how financial planners are compensated. Misleading clients undermines trust and could result in clients believing they are receiving unbiased advice when, in fact, there may be conflicts of interest due to undisclosed fees.

In contrast, actions such as providing clients with reasonable care and attention, engaging in transparent communication, and offering thorough planning based on client goals uphold the values of integrity and professionalism that the CFP® standards advocate. These actions foster a trusting client-advisor relationship and emphasize the planner's commitment to acting in the client's best interest.