CPWA EXAM WITH 100% CORRECT
ANSWERS
Question : Fiduciary Standard
CORRECT ANSWER: A legal standard that holds a
licensee to the highest ethical standards that the law provides.
Question : Compensation Disclosure
CORRECT ANSWER: Institute professionals required to
"disclose services to be offered and provided, related charges, and compensation." This principle is intended to define an Institute professional's communication responsibilities relating to the scope and cost of services offered and compensation received therefor.Principle 2 requires that Institute professionals conform with legal, regulatory, and firm requirements concerning the disclosure of the services offered, compensation received, and the out-of-pocket costs associated with those services.Disclosure contemplates either oral or written provision of information. Although not required, oral disclosures should, under best practices, be confirmed in a timely manner in writing to demonstrate compliance.
Question : Conflict of Interest Rules
CORRECT ANSWER: Institute professionals required to: (1) "disclose the existence of actual, potential, and/or
perceived conflicts of interest and relevant financial relationships, direct and/or indirect"; and (2) "take appropriate action to resolve or manage any such conflicts."
Question : Confidentiality Standard
CORRECT ANSWER: "To maintain confidentiality,"
means to keep the client information private and ensure that it is not disclosed to any unauthorized person. Privacy requires securing the information within the Institute professional's firm and, if possible, within limited segments of the firm having a need to know. Privacy may have other limitations as well, because not all confidential information is legally protected from disclosure. Legal, regulatory, and firm requirements ultimately define the scope to which information may, can, or shall be kept private.
Question : Disciplinary Rules and Procedures
CORRECT ANSWER: • Institute Professional Review
Board ("PRB") • Review, investigate and rule on violations of the Code
Types of Discipline:
Public or private censure Suspend or revoke right to use the marks
Appeals are made to the Institute "Board of Directors"
A "serious crime" is described in the glossary found in the Institute's Disciplinary Rules and Procedures as...(1) any felony; (2) any lesser crime, a necessary element of which as determined by its statutory or common law definition involves misrepresentation, fraud, extortion, misappropriation, or theft; and/or (3) an attempt or conspiracy to commit such crime, or solicitation of another to commit such crime.
Question : Date Guidelines for Disciplinary Procedures
CORRECT ANSWER: An answer to the disciplinary
petition shall be filed with the Institute staff no later than 30 days after the mailing date of the disciplinary petition to Respondent. The answer shall respond to the allegations set forth in the disciplinary petition and either request or waive the right to participate in a hearing before the Hearing Panel.Conviction and Suspension (member must notify Institute of a conviction of serious crime within 60 days) An appeal from a final order of the PRB must be filed within 60 days of the date of the order.Possible Reinstatement after suspension (requires petition to Institute within 30 days of expiration of suspension term)
Question : CPWA Certification Requirements
CORRECT ANSWER: Certification Requirements (the 4
E's)
Experience• 5 years of experience in financial services or delivering services to HNW clients
Education - complete registered education program • Plus CE requirement below
Exam - pass the certification exam
Ethics Acceptable regulatory history Uphold the Institute's Code of Professional Responsibility • Continuing Education Requirements
40 hours every two years (includes 2 hours of ethics)
Question : CPWA Use of Marks & Approved Nouns
CORRECT ANSWER: Either:
CPWA®
or The Certified Private Wealth Advisor®
Nouns:
Designee, Certificant, Professional, Consultant, Advisor