CFP Client Advisory Services 2

Question 1

A fintech advisor recommends a robo-advisor platform to a client who has a low risk tolerance and needs steady income. Which feature is MOST important to highlight?

Accepted Answer

Conservative fixed-income allocation with automatic rebalancing

Answer

A conservative fixed-income allocation with automatic rebalancing directly addresses both the client's low risk tolerance and income needs.

Question 2

When using AI-driven financial planning tools to advise a client, a CFP practitioner must ensure the recommendations are:

Accepted Answer

Explainable and reviewed by the advisor before delivery

Answer

Advisors must be able to explain AI-generated recommendations and apply professional judgment before presenting them to clients.

Question 3

A client asks why their digital wealth management platform charges a 0.25% annual fee versus a traditional advisor's 1% fee. The PRIMARY cost driver for the lower fee in digital platforms is:

Accepted Answer

Automation and economies of scale in portfolio management

Answer

Digital platforms achieve lower fees primarily through automation and serving large client bases, reducing the cost per account.

Question 4

A fintech advisor discovers that a client's open banking data reveals undisclosed debts. The advisor should FIRST:

Accepted Answer

Incorporate the data into the financial plan and discuss it with the client

Answer

The advisor should use all available accurate data to build a complete financial picture and discuss findings openly with the client.

Question 5

Which metric is MOST relevant when advising a client on the suitability of a peer-to-peer lending investment?

Accepted Answer

Historical default rates segmented by borrower credit grade

Answer

Historical default rates by credit grade directly indicate the credit risk the client would assume as a lender.

(CFP) Certified Fintech Practitioner Practice Test

(CFP) Certified Fintech Practitioner Practice Test

CFP Client Advisory Services 2