Financial Planners Standards Council today launched a new resource to help CFP professionals develop engagement letters that comply with Practice Standard 100 of the new CFP Financial Planning Practice Standards finalized this spring.

Practice Standard 100 requires written disclosure be made at the outset of a financial planning engagement to establish and/or confirm the terms of the engagement.

The new resource is available online at FPSC’s Web site at www.cfp-ca.org.

“Providing written disclosure is fundamental to ensuring both the professional and client have a mutual understanding of the scope and respective responsibilities of the engagement,” said Carolyn Fallis, director, professional & student affairs, FPSC, in a release.

“While an engagement letter is generally considered the best way to meet that requirement, FPSC acknowledges that one size does not fit all. Relationships and engagements with clients differ and are unique As such we designed this resource as a guide – not a definitive template – that CFP professionals can work with to craft engagement letters that comply with the standards and also allow for flexibility and customization to meet their unique client circumstances,” added Fallis.

FPSC says the guide offers a variety of suggested disclosure boilerplate wordings and phrases that can be incorporated into an engagement letter. As well, the resource outlines seven distinct scenarios as examples, with sample template letters and options that can be further customized. The scenarios address both financial planning engagements and those that are not considered financial planning but may be construed as such by a client and would require appropriate disclosure from a CFP professional.