Practice Test Geeks(CCRM) Certified Client Relationship Manager Practice Test
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Ethical Practice Flashcards

7 cards from real CCRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Ethical Practice flashcards as text

  1. An ethical professional's duty of loyalty primarily runs to:

    Answer: The client and adherence to applicable professional standards

    Duty of loyalty in client relationship management flows first to the client and then to upholding professional ethical standards.

  2. What is 'churning' in the context of ethical client management?

    Answer: Excessive transactions in a client account primarily to generate commissions

    Churning is the unethical practice of executing unnecessary transactions to increase commissions at the client's expense.

  3. Ethical communication with clients requires that information be presented:

    Answer: Accurately, clearly, and without misleading omissions

    Ethical communication mandates that all information conveyed to clients be accurate, balanced, and free of misleading omissions.

  4. A client discloses sensitive personal information during an advisory session. The CCRM should:

    Answer: Keep it strictly confidential and use it only as necessary to serve the client

    Confidentiality requires that personal disclosures be protected and used only in ways that directly serve the client's interests.

  5. The concept of 'independent judgment' in ethical practice means:

    Answer: Forming professional conclusions free from undue external influence or bias

    Independent judgment requires that professional conclusions be based on objective analysis rather than pressure from clients, employers, or peers.

  6. A prospective client asks a CCRM to compare the firm's services by misrepresenting competitors. The ethical response is to:

    Answer: Decline to misrepresent competitors and offer only accurate, factual comparisons

    Ethical standards prohibit misrepresenting competitors; professionals must rely on truthful, substantiated comparisons only.

  7. When a CCRM professional is uncertain whether an action is ethical, the best first step is to:

    Answer: Consult the firm's code of ethics, compliance department, or a senior ethical authority

    Ethical uncertainty should always trigger consultation with established codes of conduct or compliance professionals before action is taken.