AFC Financial Counseling Principles & Ethics 5

Question 1

A financial counselor receives a subpoena for a client's records. What should the counselor do first?

Accepted Answer

Consult with legal counsel before releasing any records

Answer

A subpoena is a legal order that may compel disclosure, so consulting legal counsel first ensures proper compliance while protecting both counselor and client.

Question 2

Which situation would ethically require a financial counselor to break client confidentiality without consent?

Accepted Answer

A client reveals plans to defraud their employer

Answer

Planned fraud that could harm third parties may create a duty to warn or report, overriding standard confidentiality protections.

Question 3

What does 'informed consent' require a financial counselor to explain before beginning services?

Accepted Answer

The counseling process, limits of confidentiality, counselor credentials, and client rights

Answer

Informed consent is a comprehensive disclosure that ensures clients understand what counseling involves, its limitations, and their rights before agreeing to participate.

Question 4

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)?

Accepted Answer

Set aside personal beliefs and provide objective, client-centered counseling

Answer

Professional objectivity requires counselors to separate personal values from client service and provide non-judgmental, client-centered guidance.

Question 5

An AFC counselor is approached by a mortgage company offering payment for client referrals. What is the ethical response?

Accepted Answer

Accept if the referral fee is disclosed to clients

Answer

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.

AFC - Accredited Financial Counselor Practice Test

AFC - Accredited Financial Counselor Practice Test

AFC Financial Counseling Principles & Ethics 5