Which statement regarding the traits or values of financial advisors is correct?

The statement regarding professionalism as being displayed by being competent and knowledgeable is accurate because professionalism encompasses a financial advisor's ability to operate with a high level of skill and expertise. Competence refers to the advisor's understanding of financial principles, regulations, and products, while knowledge reflects their continuous pursuit of industry updates and education. A professional financial advisor builds trust with clients through their ability to provide informed, effective, and reliable advice based on sound financial judgment. This foundation sets the stage for successful client relationships and effective financial planning.

Other traits, while important, relate to different aspects within the advisor-client relationship. Diligence pertains more to consistent effort and thoroughness in serving clients, while objectivity relates to impartial decision-making without personal bias. Confidentiality emphasizes the importance of protecting client information relevant to their financial circumstances but does not inherently mean that recommendations must be impartial. Understanding these distinctions further highlights why professionalism, as defined in the correct statement, is critical in the field of financial advising.