Accredited Wealth Management Advisor (AWMA) Exam 3 Practice Test

The key idea here is what counts as a fiduciary duty under the CFP Standards of Conduct. Fiduciary duties require placing the client’s interests ahead of the advisor’s own and acting with appropriate diligence and obedience to client directions. The duties that fit this description are loyalty (undivided loyalty to the client), care (act with prudence, skill, and diligence), and following client instructions (carry out the client’s directions when appropriate). Being competent is essential for giving good advice, and CFP professionals must maintain necessary knowledge and skills through ongoing education. However, competency isn’t framed as a fiduciary duty in these standards; it’s a baseline professional qualification that supports fulfilling fiduciary duties, not itself one of them.