Counseling Skills & Ethics Flashcards

A CRC candidate learns their certification requires ongoing continuing education. What is the primary ethical rationale for this requirement?

Answer: To ensure counselors maintain competence as retirement laws and products evolve

Continuing education upholds the ethical principle of competence, ensuring counselors stay current with changing regulations, products, and best practices.

When a client presents with signs of cognitive decline that may impair financial decision-making, what is the counselor's most appropriate action?

Answer: Pause major financial decisions, suggest the client involve a trusted person, and document observations

The counselor should protect the client's interests by slowing major decisions and encouraging involvement of trusted parties while documenting concerns.

What is the purpose of a client engagement letter or written agreement in retirement counseling?

Answer: To clearly define the scope of services, fees, and responsibilities of both parties

A written engagement letter establishes transparency, manages expectations, and protects both parties by clearly defining the counseling relationship.

A retirement counselor receives a referral fee from a financial product provider. What ethical obligation does this create?

Answer: The counselor must disclose the fee arrangement to the client

Any compensation arrangement that could influence recommendations must be disclosed to the client to maintain transparency and trust.

Which active listening technique is most effective when a client is emotionally distressed about retirement readiness?

Answer: Reflecting feelings and paraphrasing to demonstrate understanding before addressing financial details

Reflecting feelings and paraphrasing validates the client's emotions and builds rapport, creating a foundation for effective financial guidance.

A counselor notices a long-term client has suddenly changed risk tolerance and urgently wants to liquidate safe investments. This may indicate what concern?

Answer: Possible elder financial exploitation or undue influence by a third party

Sudden, unexplained changes in a long-term client's financial behavior can be a red flag for elder financial abuse or undue influence.

What does 'informed consent' specifically require in a retirement counseling context?

Answer: That the client understands the nature, risks, and alternatives of proposed strategies before agreeing

Informed consent requires the client to comprehend what is being proposed, including risks and alternatives, before agreeing to proceed.