RMA Professional Standards & Competencies 3

Question 1

Under RMA professional standards, which situation would MOST warrant disclosure to a client before proceeding?

Accepted Answer

The adviser has a financial interest in a product being recommended

Answer

Material conflicts of interest—including financial interests in recommended products—must be disclosed so clients can make informed decisions.

Question 2

When an RMA professional is uncertain whether a specific action is ethically permissible, the BEST first resource is:

Accepted Answer

The RMA Standards of Professional Conduct and, if needed, the certifying body's ethics guidance

Answer

The RMA code and ethics guidance documents are the authoritative source for resolving professional conduct questions.

Question 3

Which of the following best illustrates the competency of 'applying retirement income strategies'?

Accepted Answer

Constructing a floor-and-upside portfolio aligned with a client's essential vs. discretionary expenses

Answer

Applying retirement income strategies means customizing approaches like floor-and-upside to match the client's actual income needs and risk capacity.

Question 4

An RMA must maintain client records for how long according to general professional and regulatory best practice?

Accepted Answer

At least 5–7 years, consistent with SEC/FINRA requirements and state regulations

Answer

SEC and FINRA rules generally require retention of client records for 5–7 years, and state regulations may extend this period further.

Question 5

Professional objectivity in retirement planning means the RMA should base recommendations on:

Accepted Answer

An unbiased analysis of the client's goals, resources, and circumstances

Answer

Objectivity requires that recommendations be driven by rigorous, unbiased analysis tailored to each client's unique situation.

RMA Practice Test