FiCEP Counseling Ethics and Behaviors 2

Question 1

A financial counselor discovers a recommended plan benefits their employer more than the client. What should they do?

Accepted Answer

Disclose the conflict of interest and present alternative options

Answer

Proceed since employer interests come first

Answer

Recommend the plan without disclosure

Answer

Refuse to counsel the client further

Question 2

What is the most appropriate action when a client shares information about illegal financial activity?

Accepted Answer

Understand mandatory reporting obligations while explaining confidentiality limits

Answer

Ignore it as outside the scope of counseling

Answer

Report it immediately without telling the client

Answer

Help the client continue the activity more discreetly

Question 3

Which ethical principle requires financial counselors to only provide services within their area of expertise?

Accepted Answer

Competence

Answer

Autonomy

Answer

Beneficence

Answer

Justice

Question 4

A client asks their financial counselor to handle their investment portfolio. The counselor is not licensed. What is ethical?

Accepted Answer

Decline and refer to a qualified investment professional

Answer

Accept since the counselor understands basic investing

Answer

Attempt it but disclaim liability

Answer

Charge a reduced fee to compensate

Question 5

How should a counselor handle when their personal values conflict with a client's financial decisions?

Accepted Answer

Respect the client's autonomy while providing objective information

Answer

Express disapproval to guide the client

Answer

Refuse to continue counseling

Answer

Impose their own values as part of the process

Question 6

What is the primary purpose of maintaining detailed session notes in financial counseling?

Accepted Answer

To protect client continuity of care and demonstrate professional accountability

Answer

To have evidence in case the client sues

Answer

To share progress with the client's family

Answer

To meet marketing requirements