Financial Counseling Principles & Ethics Flashcards
7 cards from real AFC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Counseling Principles & Ethics flashcards as text
A financial counselor receives a subpoena for a client's records. What should the counselor do first?
Answer: Consult with legal counsel before releasing any records
A subpoena is a legal order that may compel disclosure, so consulting legal counsel first ensures proper compliance while protecting both counselor and client.
Which situation would ethically require a financial counselor to break client confidentiality without consent?
Answer: A client reveals plans to defraud their employer
Planned fraud that could harm third parties may create a duty to warn or report, overriding standard confidentiality protections.
What does 'informed consent' require a financial counselor to explain before beginning services?
Answer: The counseling process, limits of confidentiality, counselor credentials, and client rights
Informed consent is a comprehensive disclosure that ensures clients understand what counseling involves, its limitations, and their rights before agreeing to participate.
How should an AFC counselor handle a situation where their personal religious beliefs conflict with a client's financial goals (e.g., the client wants to use credit cards)?
Answer: Set aside personal beliefs and provide objective, client-centered counseling
Professional objectivity requires counselors to separate personal values from client service and provide non-judgmental, client-centered guidance.
An AFC counselor is approached by a mortgage company offering payment for client referrals. What is the ethical response?
Answer: Accept if the referral fee is disclosed to clients
Referral arrangements are only ethically permissible when they are fully disclosed to clients so they can make informed decisions about whether to follow the referral.
A client who was previously counseled contacts their former AFC for personal advice at a social event. What ethical boundary applies?
Answer: Post-termination relationships require the same care as active counseling relationships
Professional boundaries and confidentiality obligations extend beyond formal termination of the counseling relationship.
When a financial counselor documents client sessions, what is the primary ethical reason for maintaining accurate records?
Answer: To support continuity of care, accountability, and client protection
Accurate documentation serves the client's best interest by ensuring consistent, accountable service and providing a record that protects both client and counselor.