CIC Professional Qualifications and Integrity 4

Question 1

A CIC designee who has been inactive for three years wishes to reinstate their designation. What is the typical first step?

Accepted Answer

Contact the credentialing body to determine reinstatement requirements, which may include back CE credits and fees

Answer

Reinstatement processes vary by body but typically begin with contacting the credentialing authority to assess outstanding CE, fees, and any compliance requirements.

Question 2

Which best describes the difference between the CIC's 'suitability' obligation and 'best interest' standard?

Accepted Answer

Best interest is a higher standard requiring the advisor to prioritize the client's interest over the advisor's own

Answer

Best interest goes beyond suitability by requiring the advisor to place the client's interests first, even when multiple suitable options exist.

Question 3

A CIC holder is preparing marketing materials and wants to highlight their designation. Which statement is appropriate?

Accepted Answer

'I hold the CIC designation, awarded by [issuing body], which requires passing an examination and adhering to a code of ethics'

Answer

Marketing materials must accurately describe the CIC credential without making exaggerated claims about status, returns, or regulatory exemptions.

Question 4

When a CIC holder disagrees with a supervisor's directive to recommend a specific product that may not suit all clients, the most ethical course of action is to:

Accepted Answer

Escalate the concern through compliance or ethics channels before recommending the product

Answer

CIC holders must use internal escalation channels when faced with directives that conflict with client best interest obligations.

Question 5

Which of the following best supports a CIC holder's ongoing professional competence?

Accepted Answer

Regularly completing continuing education covering current market developments and regulatory changes

Answer

Continuing education ensures CIC holders maintain current knowledge as markets, regulations, and investment products evolve.

(CIC) Certified Investment Counselor Practice Test

(CIC) Certified Investment Counselor Practice Test

CIC Professional Qualifications and Integrity 4