CIC Professional Qualifications and Integrity 2

Question 1

A CIC candidate discovers that a colleague submitted falsified continuing education credits. What is the candidate's primary obligation under professional integrity standards?

Accepted Answer

Report the violation to the appropriate credentialing authority

Answer

Ignore it to avoid workplace conflict

Answer

Confront the colleague privately and take no further action

Answer

Resign from the firm to avoid association

Question 2

Which of the following best describes the 'fit and proper' requirement for CIC designation holders?

Accepted Answer

Demonstrating ongoing financial soundness, competence, and ethical conduct

Answer

Passing a physical fitness assessment annually

Answer

Maintaining a net worth above a specified threshold

Answer

Holding a minimum of five years of investment experience at all times

Question 3

A CIC holder is asked to provide a client reference letter for a colleague seeking a new position. The CIC holder knows the colleague had a past client complaint that was resolved. What should the holder do?

Accepted Answer

Decline to write the letter rather than provide a misleading endorsement

Answer

Write a fully positive letter omitting the complaint since it was resolved

Answer

Contact the prospective employer anonymously with the complaint details

Answer

Write the letter but include only vague praise to avoid liability

Question 4

Under CIC standards, how should a designee handle a situation where firm policy conflicts with the CIC Code of Ethics?

Accepted Answer

Follow the CIC Code of Ethics, which sets the higher standard

Answer

Always follow firm policy because it is legally binding

Answer

Seek a compromise that partially satisfies both requirements

Answer

Resign immediately from the firm

Question 5

Which action would most likely result in revocation of the CIC designation?

Accepted Answer

Conviction for securities fraud

Answer

Filing a personal bankruptcy due to medical bills

Answer

Changing employers without notifying the credentialing body within 30 days

Answer

Failing to update a client's risk profile for two years

Question 6

A CIC designee uses a social media post to claim expertise in derivatives trading that they do not actually possess. This primarily violates which professional standard?

Accepted Answer

Misrepresentation and honesty standards

Answer

Continuing education requirements

Answer

Client confidentiality rules

Answer

Recordkeeping obligations

Question 7

What is the purpose of a CIC designee disclosing potential conflicts of interest to clients?

Accepted Answer

To enable clients to make informed decisions with full knowledge of the advisor's interests

Answer

To satisfy a regulatory filing requirement only

Answer

To protect the advisor from malpractice lawsuits

Answer

To comply with firm marketing guidelines