CRM Ethical Standards & Professional Conduct

Question 1

Which principle requires a Certified Relationship Manager to always act in the best interest of the client rather than pursuing personal gain?

Accepted Answer

Fiduciary duty

Answer

Fiduciary duty obligates a CRM professional to prioritize the client's interests above their own in all financial and relationship decisions.

Question 2

A CRM professional discovers a colleague is sharing confidential client data with third parties without consent. The BEST first step is to:

Accepted Answer

Report it through the firm's internal compliance channel

Answer

Internal compliance reporting is the correct first step as it follows proper escalation procedures while protecting all parties involved.

Question 3

Which of the following best describes a conflict of interest in relationship management?

Accepted Answer

Offering a product the client doesn't need because it pays higher commission

Answer

A conflict of interest occurs when personal or firm incentives—like higher commissions—could compromise objective advice to the client.

Question 4

Under the CRM Code of Ethics, which obligation requires professionals to maintain accurate and complete records of client interactions?

Accepted Answer

Accountability

Answer

Accountability requires CRM professionals to keep thorough records so that their actions and recommendations can be reviewed and verified.

Question 5

A CRM professional receives a gift from a vendor whose products are recommended to clients. According to ethical guidelines, the professional should:

Accepted Answer

Disclose it to compliance and assess whether it influences objectivity

Answer

Ethical standards require disclosure of any gifts to compliance so the firm can assess whether objectivity or client interests could be compromised.

CRM - Certified Relationship Manager Practice Test