Which of the following statements concerning the consequences of conduct inconsi

Question

Which of the following statements concerning the consequences of conduct inconsistent with the CFP Board's Financial Planning Practice Standards is correct?

Answers:      

A. The CFP Board can enforce the Practice Standards against all financial planning professionals.

B. Conduct inconsistent with the Practice Standards creates a presumption that a legal duty was breached.

C. Conduct inconsistent with the Practice Standards gives rise to a cause of action against the financial planner.

D. The Practice Standards do not provide a basis for legal liability of the financial planner.

Explanation / Answer

Which of the following statements concerning the consequences of conduct inconsistent with the CFP Board's Financial Planning Practice Standards is correct?

The correct statement is option D –

D. The Practice Standards do not provide a basis for legal liability of the financial planner.

The consequences of conduct inconsistent with the CFP Board’s Financial Planning Practice Standards do not provide a basis for legal liability of the financial planner. The CFP Board designs a framework for the professional practice of financial planning. It is neither intended to gives rise to a cause of action against financial planners nor to create any presumption that a legal duty was breached. It is also nor enforceable against all financial planning professionals.

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