CRM Ethical Standards & Professional Conduct 2

Question 1

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

Accepted Answer

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

Answer

Sharing client data in a compliance audit

Answer

Discussing anonymized case studies in training

Answer

Reporting suspicious activity to regulators

Question 2

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

Accepted Answer

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

Answer

Processing paperwork as quickly as possible

Answer

Immediately cross-selling all available products

Answer

Deferring all risk assessments to a third party

Question 3

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

Accepted Answer

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

Answer

Ask the client directly about the suspicious transactions

Answer

Report to the client's accountant

Answer

Ignore it if the amounts are under $10,000

Question 4

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

Accepted Answer

Continuously update their knowledge and skills through ongoing education

Answer

Only handle clients whose industries they are familiar with

Answer

Delegate all technical tasks to junior staff

Answer

Rely solely on product brochures for client information

Question 5

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

Accepted Answer

FinCEN

Answer

SEC

Answer

FINRA

Answer

CFPB

Question 6

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

Accepted Answer

Ensure the client understands the basis of every recommendation before proceeding

Answer

Follow the client's instruction without question

Answer

Escalate immediately to senior management

Answer

Refuse to work with the client