Client’s Engagement Letter Format Financial Planning

Letter of Engagement for Comprehensive Financial Plan

(including Implementation & Monitoring)

Mr. & Mrs. Client Name

123 Any Street

City

Postal Code

Dear Mr. and Mrs:

I would like to thank you for the opportunity to meet with you to discuss your financial affairs and welcome the opportunity to work with you as your financial planner.

This engagement letter is intended to outline the specific terms of the financial planning engagement between

 Mr. Your name CFP 

 And

 Client Name   

If the scope or terms of the financial planning engagement are subject to change, they should be documented in writing and mutually agreed upon by all parties of the engagement.

Please be assured that all information that you provide to me will be kept strictly confidential. During the financial planning engagement it may, on occasion, be required to consult with other third-party professionals at which time I would obtain your written permission to disclose your personal information.

As discussed at our initial meeting, this engagement will include all services required to develop a comprehensive financial plan. These services will specifically include, but are not limited to:

  • Reviewing and prioritizing your goals and objectives of your current financial situation, including a net worth statement, cash flow summary, budget and income tax analysis.
  • Developing a financial management strategy, including financial projections and analysis.
  • Assessing exposure to financial risk and developing a risk management plan.
  • Completing a retirement planning assessment, including financial projections of assets required at estimated retirement date.
  • Assessing estate net worth and liquidity and the developing an estate plan to ensure estate      planning objectives are met.
  • Identifying tax planning strategies to optimize financial position
  • Integrating and prioritizing all strategies outlined above into a comprehensive financial. 
  • Presenting a written financial plan that will be reviewed in detail with you. 
  • Developing upon an action plan to implement the agreed upon recommendations.
  • Referral to other professionals, as required, to assist with implementation of the action plan.
  • Managing the implementation of the financial plan.
  • Monitoring financial performance in relation to financial plan.
  • On-going review and assessment of assumptions incorporated into financial plan given changes in economic, political and regulatory environment.
  • Determining necessity to revise financial plan.
  • Reviewing current investment portfolio and developing an asset management strategy. 
  • It will contain recommendations designed to meet your stated goals and objectives, supported by relevant financial summaries.

This will be an on-going professional relationship. At a minimum, we will meet on an annual basis to ensure the plan is still appropriate for you. If you should wish to terminate this engagement at any time, you must notify me in writing. Any fees incurred to that date will be accrued and payable in full.

My engagement fee is Rs____ plus applicable taxes for the initial financial plan and one year of monitoring. Payment terms include Rs____ payable upon acceptance of this engagement and with the balance due upon presentation of the comprehensive financial plan. Subsequent to the first year, our meetings will be subject to a fee of Rs___ per hour.

Please be advised that I do not receive a referral fee from the other professional(s) to whom you may be referred.  

In order to ensure that the comprehensive financial plan contains sound and appropriate financial planning recommendations, it is your responsibility to provide complete and accurate information regarding all aspects of your personal and financial situation including objectives, needs and values, investment statements, tax returns, copies of wills, powers of attorney, insurance policies, employment benefits, retirement benefits, relevant legal agreements. This list is not all inclusive and any other relevant information should be disclosed in a timely manner.

It is your responsibility to ensure that any material changes to the above noted circumstances are disclosed to your financial planner on a timely basis as they could impact the financial planning recommendations.

I wish to advise you that I have no known conflicts of interest in the acceptance of this engagement. I commit that I will advise you of any conflicts of interest, in writing, as they should arise.

I look forward to working with you and helping you reach your financial planning goals.

Yours truly,

Mr. Your Name. CFP

 Financial Planning

I have read, understood and accept the terms outlined in this engagement letter.

_____________________                               ___________________

Client (            )                                                 Date:

I have read, understood and accept the terms outlined in this engagement letter.

_____________________                                ___________________

Client (           )                                                         Date:

3 Responses so far »

  1. 1

    Hi

    Thank you for sharing the letter of engagement. I saw it through seeing one of the open discussion threads on Linked In.

    Regards
    Abhinav Gulechha

    • 2

      Hey,

      Thanks Hope it will be useful and please share some of the details and other stuff and will give some of excel templates. introduce some of your friends online. lets make big community of financial planner.

      Regards,
      Badarish

  2. 3

    What’s Going down i’m new to this, I stumbled upon this I have found It
    absolutely helpful and it has helped me out loads. I’m hoping to contribute & aid different customers like its aided me. Great job.


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