FP1 / FULL PRACTICE EXAM QUESTIONS AND ANSWERS

Which statement regarding the traits or values of financial advisors is correct? A. Professionalism is displayed by being competent and knowledgeable. B. Diligence is displayed by being honest with clients. C. Objectivity requires respecting clients' privacy. D. Confidentiality requires the advisor to make impartial recommendations. - correct answer-A. Professionalism is displayed by being competent and knowledgeable. Professionalism is displayed by being competent and knowledgeable by keeping up to date regarding key aspects of the financial services industry. By and large, what statement below is true in regards to the current landscape in Canada for financial advisors? A. There has been a dramatic shift to fee based advice as it's perceived as unbiased. B. The role has shifted to a client driven model where building a strong client relationship is key. C. The business is now product driven where it's all about selling higher commissioned products. D. The industry is focusing on reducing costs and finding the most inexpensive investments for clients. - correct answer-B. The role has shifted to a client driven model where building a strong client relationship is key. The role of the Advisor in the financial services industry has changed in recent years from one that is product driven to one that is client driven. Reference: Module 1, Section 1