A CFP professional is advising a client, Mr. Henderson, on investment products. The professional's firm has a proprietary mutual fund that pays a higher commission to the firm than other third-party funds. The professional presents this proprietary fund as one of several options without explicitly detailing the incentive structure to Mr. Henderson. Which FP Canada Standard of Professional Conduct is primarily violated in this scenario?

Question: A CFP professional is advising a client, Mr. Henderson, on investment products. The professional's firm has a proprietary mutual fund that pays a higher commission to the firm than other third-party funds. The professional presents this proprietary fund as one of several options without explicitly detailing the incentive structure to Mr. Henderson. Which FP Canada Standard of Professional Conduct is primarily violated in this scenario?

Answer options: ✅ Fiduciary Duty (acting in the client's best interest)

• Confidentiality
• Competence
• Diligence

Correct answer: Fiduciary Duty (acting in the client's best interest)

Explanation: This scenario directly violates the CFP professional's Fiduciary Duty, which requires them to always act in the client's best interest, even if it means foregoing higher personal or firm compensation from proprietary products.