Ethics and Behaviors Flashcards
7 cards from real FICEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethics and Behaviors flashcards as text
A financial counselor discovers that a client's spouse has been secretly transferring marital funds to a private account. What is the counselor's primary ethical obligation?
Answer: Maintain confidentiality and address financial planning with the information known
Financial counselors must maintain confidentiality and work within the scope of their role, avoiding involvement in legal or marital disputes beyond their expertise.
Under the FiCEP code of ethics, which action best demonstrates the principle of non-maleficence?
Answer: Avoiding advice that could harm a client's financial stability even if the client requests it
Non-maleficence means avoiding harm, so counselors should refrain from recommending strategies that could damage a client's financial well-being, even if requested.
A certified financial counselor is asked by their employer to upsell clients on fee-based products that may not suit the client's needs. The counselor should:
Answer: Refuse and escalate the concern, citing their professional ethical obligations
Professional ethical obligations to clients supersede employer directives when those directives conflict with the client's best interests.
Which scenario represents a dual-role conflict of interest for a financial counselor?
Answer: Providing financial counseling to a personal friend while charging standard fees
Counseling a personal friend creates a dual relationship that can compromise objectivity and professional boundaries.
When a client provides false financial information to obtain counseling services, the counselor's ethical responsibility includes:
Answer: Confronting the client, documenting the discrepancy, and reassessing the counseling relationship
Counselors must address inaccurate information directly with clients and document it, as truthful data is essential for effective and ethical counseling.
A financial counselor receives a referral fee from a debt management company each time they refer clients. This practice is ethically acceptable ONLY when:
Answer: The counselor discloses the arrangement fully to the client before making any referral
Full and prior disclosure of any referral fees to clients is required to avoid undisclosed conflicts of interest.
A financial counselor notices signs of elder financial abuse during sessions with an older client. Their ethical duty is to:
Answer: Document observations and report to appropriate authorities per mandatory reporting laws
Mandatory reporting obligations require counselors to report suspected elder financial abuse to relevant authorities, regardless of client disclosure.