CFS Study Guide 2026
Everything you need to pass the CFS exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📚 CFS Topics to Study (21)
✍️ Sample CFS Questions & Answers
1. What fiduciary duty applies to estate planning?
Fiduciary duty requires acting in the client's best interest with loyalty, care, and full disclosure of all material facts.
2. What is the typical 'two and twenty' fee structure in a hedge fund?
The '2 and 20' structure means a 2% annual management fee on assets under management plus a 20% incentive fee on profits generated.
3. Which rating from Moody's indicates the highest investment-grade bond quality?
Moody's highest rating is Aaa, indicating the issuer has an exceptional capacity to meet financial commitments.
4. What is the significance of confidentiality in financial planning?
Confidentiality is paramount in financial planning as clients entrust advisors with highly sensitive personal and financial information. Upholding confidentiality ensures the privacy of this data, which is crucial for building and maintaining a strong foundation of trust between the advisor and client. This trust encourages open and honest communication, enabling the advisor to develop the most appropriate and effective financial strategies.
5. What cleaning and sanitizing procedure is essential for regulatory compliance?
Food contact surfaces must be cleaned and sanitized before use, between different food tasks, and at regular intervals to prevent contamination.
6. Which risk describes the possibility that a bond issuer will be unable to make scheduled interest or principal payments?
Default risk (credit risk) is the chance that the bond issuer will fail to meet its contractual debt obligations.