STEP Ethical Standards & Professional Conduct 5

Question 1

A STEP member discovers that a colleague has breached client confidentiality. What is the most appropriate first step?

Accepted Answer

Raise the concern internally through the firm's compliance or ethics framework

Answer

Best practice requires raising concerns through internal compliance channels first, unless internal escalation is itself compromised or the breach is sufficiently serious to require external reporting.

Question 2

Which of the following is the most accurate description of a STEP member's duty when giving tax advice?

Accepted Answer

Provide honest, competent advice on tax-efficient planning while remaining within the boundaries of the law and ethical standards

Answer

STEP members must give competent, honest tax advice that is lawful and ethically sound, avoiding arrangements that cross from legitimate planning into evasion.

Question 3

A client insists their will must exclude a child with whom they have fallen out. The STEP practitioner's obligation is to:

Accepted Answer

Advise the client of the potential for a family provision claim and then, if instructed, draft the will as directed

Answer

Testamentary freedom allows clients to exclude beneficiaries, but STEP ethics require the practitioner to advise on the risk of a family provision claim before following those instructions.

Question 4

STEP's approach to 'professional courtesy' between practitioners primarily requires:

Accepted Answer

Treating opposing parties and their representatives with respect while still advocating effectively for clients

Answer

Professional courtesy means maintaining respectful conduct toward all parties and their advisers while continuing to act vigorously in the client's legitimate interest.

Question 5

Under STEP ethics, a practitioner who identifies that a trust structure they created five years ago may now be ineffective must:

Accepted Answer

Proactively alert the client to the potential issue and advise on remedial options

Answer

The ongoing duty of care requires STEP practitioners to proactively communicate emerging problems with prior work and advise clients on how to remedy them.

(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 5