Mr. Lee, a long-standing client, asks his CFP professional if they know any reliable real estate agents, as he is looking to sell his home. The CFP professional's spouse is a successful real estate agent in the same area. The CFP professional believes their spouse is highly competent and could provide excellent service to Mr. Lee. What is the most appropriate course of action for the CFP professional?

Question: Mr. Lee, a long-standing client, asks his CFP professional if they know any reliable real estate agents, as he is looking to sell his home. The CFP professional's spouse is a successful real estate agent in the same area. The CFP professional believes their spouse is highly competent and could provide excellent service to Mr. Lee. What is the most appropriate course of action for the CFP professional?

Answer options: ✅ Inform Mr. Lee about their spouse's profession and offer to provide their contact information, emphasizing Mr. Lee is free to choose any agent.

• Recommend their spouse as the best option, given their personal knowledge of their spouse's competence.
• Refuse to provide any recommendations to avoid any appearance of conflict.
• Suggest Mr. Lee research real estate agents independently without any personal recommendations.

Correct answer: Inform Mr. Lee about their spouse's profession and offer to provide their contact information, emphasizing Mr. Lee is free to choose any agent.

Explanation: While referring a client to a competent professional is helpful, a CFP professional must disclose any personal or business relationship that could be perceived as a conflict of interest. Providing the information transparently allows Mr. Lee to make an informed decision, while maintaining the CFP professional's integrity.