Practice Test GeeksCRM - Certified Relationship Manager Practice Test
← All CRM Flashcard Decks

Ethical Standards & Professional Conduct Flashcards

6 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Ethical Standards & Professional Conduct flashcards as text

  1. Which of the following actions would constitute a breach of client confidentiality under CRM ethical standards?

    Answer: Disclosing client financial details to a non-affiliated third party without consent

    Disclosing identifiable client financial information to unaffiliated third parties without consent is a direct breach of the confidentiality obligation.

  2. What does 'due diligence' require of a CRM professional when onboarding a new client?

    Answer: Thoroughly verifying the client's identity, financial background, and needs before making recommendations

    Due diligence requires a CRM professional to gather complete and accurate information about the client before any recommendation is made.

  3. When a CRM professional suspects a client may be involved in money laundering, the CORRECT action under U.S. regulations is to:

    Answer: File a Suspicious Activity Report (SAR) with FinCEN without tipping off the client

    U.S. Bank Secrecy Act regulations require filing a SAR with FinCEN and prohibit alerting the client (tipping off) about the report.

  4. Professional competency in the CRM framework requires that a relationship manager:

    Answer: Continuously update their knowledge and skills through ongoing education

    Competency is maintained through continuous professional development so that the CRM can provide current, accurate advice to clients.

  5. Which regulatory body governs anti-money laundering (AML) compliance for financial institutions and their CRM professionals in the U.S.?

    Answer: FinCEN

    The Financial Crimes Enforcement Network (FinCEN) enforces AML regulations including SAR filing requirements under the Bank Secrecy Act.

  6. A client asks their CRM to make investment decisions without explaining the reasoning. Ethical practice requires the CRM to:

    Answer: Ensure the client understands the basis of every recommendation before proceeding

    Ethical CRM practice requires informed consent, meaning clients must understand the rationale behind recommendations before decisions are made.