If a CFP professional makes a false statement about a client's portfolio performance, what is the issue and remedy?

• A. Misrepresentation; correct the record, disclose the error, and avoid repeating
• B. Mistake with no remedy
• C. It is acceptable if unintentional
• D. Personal offense but no action

Answer: (A)

This item centers on misrepresentation and the duty to keep client information and communications truthful. A CFP professional who makes a false statement about a client’s portfolio performance is engaging in misrepresentation, a serious ethics violation. The key idea is that accuracy in reporting and presenting client results is essential to protect clients and maintain trust, even if the false statement was not intentional.

The remedy goes beyond simply acknowledging a mistake. The proper response is to correct the record, disclose the error to the client, and take steps to ensure it does not happen again. This honors the client’s right to truthful information and helps prevent future harm. It also demonstrates a commitment to professional accountability, which can involve reviewing and improving reporting processes, training, and controls to safeguard against similar errors.

Why the other notions don’t fit: saying it’s a mistake with no remedy would ignore the obligation to rectify inaccuracies; claiming it’s acceptable if unintentional incorrectly assumes intent absolves responsibility and ignores the duty to provide truthful information; focusing on personal offense but no action contradicts the professional obligation to act in the client’s best interest and to remedy misstatements.