Certified Financial Planner (CFP) Practice Exam · Question
Scenario 38: A financial planner must ensure that their recommendations are aligned with the client's risk tolerance, goals, and financial situation. Which principle does this demonstrate?
Suitability requires that all recommendations made by a financial planner are appropriate given the client's unique financial circumstances, risk tolerance, and
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Question: Scenario 38: A financial planner must ensure that their recommendations are aligned with the client's risk tolerance, goals, and financial situation. Which principle does this demonstrate?
Answer options:
- Confidentiality
- Integrity ✅ Suitability
- Objectivity
Correct answer: Suitability
Explanation: Suitability requires that all recommendations made by a financial planner are appropriate given the client's unique financial circumstances, risk tolerance, and objectives. The correct answer is "Suitability". This capacity-fill scenario 38 reinforces the same competency for the cfp bank and follows the certified explanation standard.
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