CCRM Ethical Practice 4

Question 1

A long-term client insists on a strategy the CCRM believes is unsuitable. The ethical course of action is to:

Accepted Answer

Document the concern, advise against it in writing, and implement only after documented client acknowledgment

Answer

Professionals must advise clients of suitability concerns in writing and obtain acknowledgment before proceeding with client-directed actions.

Question 2

Which action best demonstrates the ethical principle of fairness in client treatment?

Accepted Answer

Applying consistent standards and processes regardless of client profitability

Answer

Fairness requires applying equal standards and processes to all clients irrespective of their commercial value to the firm.

Question 3

An ethical obligation to keep client information confidential continues:

Accepted Answer

Even after the relationship ends, unless disclosure is legally required

Answer

Confidentiality obligations persist beyond the end of the engagement and can only be broken when legally mandated.

Question 4

When receiving a gift from a client that may influence professional judgment, the ethical action is to:

Accepted Answer

Decline or disclose the gift per firm policy and ethical guidelines

Answer

Gifts that could compromise objectivity must be declined or disclosed in accordance with firm and professional ethical policies.

Question 5

The ethical standard of 'do no harm' in client relationship management means:

Accepted Answer

Ensuring professional actions do not cause foreseeable injury to clients or third parties

Answer

Professionals have a duty to avoid foreseeable harm to all parties, including clients, counterparties, and the broader public.

(CCRM) Certified Client Relationship Manager Practice Test