ISO 22222:2005 - Certified Personal Financial Planner Quiz 01 26Jul25 - Practice Quiz

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Question 1 of 30

A financial planner, operating under the principles of ISO 22222:2005, is advising a client on a portfolio of investment products. The planner has identified a particular mutual fund that aligns well with the client\'s risk tolerance and financial goals. The provider of this mutual fund offers a trailing commission to the planner for every year the client\'s investment remains in the fund. What is the most ethically sound and compliant course of action for the planner regarding this commission structure?

Disclose the receipt of the trailing commission to the client in writing before the client invests in the mutual fund.

Only disclose the commission if the client specifically asks about the planner's compensation.

Accept the commission and assume it is implicitly covered by the overall service fee charged to the client.

Wait until the end of the fiscal year to inform the client about any commissions received from product providers.

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