CFP Regulatory Frameworks & Compliance 4

Question 1

Under the Securities Act of 1933, which of the following securities offerings is typically exempt from SEC registration under Regulation D, Rule 506(b)?

Accepted Answer

A private placement to no more than 35 non-accredited sophisticated investors and unlimited accredited investors without general solicitation

Answer

Rule 506(b) permits private placements to unlimited accredited investors and up to 35 sophisticated non-accredited investors without general solicitation or advertising.

Question 2

Which regulatory body has primary oversight responsibility for commodity futures trading and enforces position limits to prevent market manipulation?

Accepted Answer

Commodity Futures Trading Commission (CFTC)

Answer

The CFTC is the primary federal regulator of commodity futures and options markets, including enforcement of speculative position limits.

Question 3

A CFP® professional who learns that a client intends to commit financial elder abuse against a vulnerable adult is obligated to:

Accepted Answer

Report the suspected abuse to the appropriate authorities and may withdraw from the engagement

Answer

CFP Board's Standards permit—and in many states require—reporting suspected financial exploitation of vulnerable adults to authorities, overriding normal confidentiality obligations.

Question 4

The SECURE 2.0 Act of 2022 changed the required beginning date (RBD) for RMDs from IRAs for individuals who turn 72 after December 31, 2022, to which age?

Accepted Answer

73

Answer

SECURE 2.0 increased the RMD starting age to 73 for those reaching age 72 after December 31, 2022, with a further increase to 75 scheduled for 2033.

Question 5

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, which entity was created to monitor systemic risk to the U.S. financial system?

Accepted Answer

Financial Stability Oversight Council (FSOC)

Answer

FSOC was established by Dodd-Frank to identify and respond to systemic risks to the financial system, designating systemically important financial institutions.

CFP - Certified Financial Planner Practice Test

CFP - Certified Financial Planner Practice Test

CFP Regulatory Frameworks & Compliance 4