CFP BOARD

Question #7

Mary, a 79-year-old widow with $2.2 million in investable assets, meets with Sharon, a CFP® professional and Investment Adviser Representative. Mary has always self-directed her investments and during a recent market downturn, moved to cash and fixed investments. At this time, Mary would like to have a limited engagement with Sharon to recommend a portfolio suitable for her. Which of the following is the best course of action for Sharon at this time?

  1. Collect Mary’s financial documents and investment statements
  2. Furnish Mary a copy of Sharon’s Form ADV
  3. Prepare a diversified portfolio investment policy statement for Mary
  4. Provide a risk assessment questionnaire to Mary

Key: B

Rationale:

B. Correct. Providing a copy of Form ADV is accomplished during the first step of the financial planning process, which is establishing the client relationship.
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