STEP Ethical Standards & Professional Conduct 2

Question 1

Under STEP's Code of Professional Conduct, what must a practitioner do when they discover a conflict of interest mid-engagement?

Accepted Answer

Disclose the conflict and obtain informed consent from all parties, or withdraw

Answer

STEP's Code requires disclosure of conflicts and obtaining informed consent, or withdrawal if consent cannot be obtained or the conflict is unresolvable.

Question 2

A STEP member is asked to act as both trustee and solicitor for the same trust. Which ethical principle is most at risk?

Accepted Answer

Independence and objectivity

Answer

Acting in dual roles as trustee and legal adviser creates a conflict that directly threatens the practitioner's independence and objectivity.

Question 3

Which of the following best describes the STEP principle of 'integrity' as applied to client communications?

Accepted Answer

Being honest, straightforward, and not misleading clients even by omission

Answer

Integrity in client communications means being truthful and not creating false impressions, including through selective omission of relevant facts.

Question 4

A client instructs a STEP practitioner to structure an estate plan in a way the practitioner believes is lawful but clearly designed to defeat a dependent's reasonable claims. The practitioner should:

Accepted Answer

Advise the client of the legal and ethical implications, then decide whether to proceed

Answer

STEP ethics require practitioners to advise clients on legal and ethical implications of instructions before deciding whether the engagement can continue.

Question 5

STEP's CPD requirements primarily serve which ethical objective?

Accepted Answer

Ensuring practitioners maintain and develop competence over time

Answer

CPD is an ethical obligation under STEP's framework to ensure members maintain the competence needed to serve clients effectively as law and practice evolve.

(STEP) Society of Trust and Estate Practitioners Certification Practice Test

(STEP) Society of Trust and Estate Practitioners Certification Practice Test

STEP Ethical Standards & Professional Conduct 2