A CFP professional discovers a significant error in a financial plan previously presented to a client, Mr. Gupta. The error would lead to a substantial overestimation of his retirement income. Mr. Gupta has not yet implemented any recommendations from the plan. What is the CFP professional's primary ethical obligation in this situation?

Question: A CFP professional discovers a significant error in a financial plan previously presented to a client, Mr. Gupta. The error would lead to a substantial overestimation of his retirement income. Mr. Gupta has not yet implemented any recommendations from the plan. What is the CFP professional's primary ethical obligation in this situation?

Answer options: ✅ Immediately inform Mr. Gupta of the error, explain its implications, and provide a corrected plan.

• Correct the error discreetly and resubmit the revised plan without drawing attention to the mistake.
• Wait for Mr. Gupta to notice the error himself before addressing it.
• Offer a discount on future services as compensation for the potential inconvenience, while correcting the plan.

Correct answer: Immediately inform Mr. Gupta of the error, explain its implications, and provide a corrected plan.

Explanation: The CFP professional has a fundamental duty of care and integrity. Upon discovering an error that significantly impacts a client's financial situation, the professional must immediately inform the client, explain the error's implications, and rectify the plan to maintain trust and prevent harm.