Advanced Diploma of Financial Planning (ADFP) Practice Test

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Prepare for the Advanced Diploma of Financial Planning Test. Study with interactive quizzes and comprehensive questions, each offering detailed explanations and insights. Gear up for success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Do many financial planners work for accounting firms, law firms, and insurance companies?

Yes, it is very common
Yes, but only a few
No, very few do
No, they tend to work independently

The correct answer is: No, very few do

Many financial planners do actually work within a variety of organizational structures, including accounting firms, law firms, and insurance companies. It is quite common for these professionals to be integrated into these industries because they often collaborate on financial planning activities that require legal and accounting expertise. For instance, lawyers might need financial planners to help clients with estate planning, while accountants often refer clients to financial planners for investment and retirement planning strategies. The assertion that few financial planners work in these environments may stem from the increasing trend of planners opting for independent practices, allowing them greater flexibility and possibly broader client bases. However, the integration of financial planning into these other professional services signifying a common trend contradicts the provided answer. Thus, the understanding should focus on the prevalent collaboration and employment of financial planners within these firms rather than the notion of them being few in number.