Under CFP ethics, termination of the relationship is appropriate when the client asks you to perform illegal actions.

Under CFP ethics, termination of the relationship is appropriate when the client asks you to perform illegal actions.

• A. True
• B. False
• C. Only if the client is not paying
• D. Never

Answer: (A)

When a client asks you to perform illegal actions, your obligation is to refuse and withdraw from the relationship. You cannot assist with illegal activity, and continuing would compromise your integrity and the public’s trust in the profession. The appropriate course is to explain that you cannot help with the request and to terminate the engagement. If possible, offer to facilitate a smooth transition, such as providing records to the client and suggesting they seek another advisor who will operate within legal and ethical boundaries, while maintaining confidentiality and handling any remaining administrative matters. This protects both the client and the advisor and upholds the standards governing professional conduct.

When a client asks you to perform illegal actions, your obligation is to refuse and withdraw from the relationship. You cannot assist with illegal activity, and continuing would compromise your integrity and the public’s trust in the profession. The appropriate course is to explain that you cannot help with the request and to terminate the engagement. If possible, offer to facilitate a smooth transition, such as providing records to the client and suggesting they seek another advisor who will operate within legal and ethical boundaries, while maintaining confidentiality and handling any remaining administrative matters. This protects both the client and the advisor and upholds the standards governing professional conduct.