CFP Board Provides Sample Engagement Letters

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The Certified Financial Planner Board of Standards said Thursday that it’s providing two sample engagement letters to help CFPs communicate to clients a CFP professional’s “duty to provide information” under the its newly amended Code of Ethics and Standards of Conduct.

The first is focused on engagement with a CFP professional for financial advice, and the second is focused on engagement with a CFP professional for financial planning.

The samples do not replace the CFP professional’s firm’s contracts, agreements or other legal documents or regulatory documents, such as Form ADV, Form CRS or any other documents required by federal or state regulators or the Financial Industry Regulatory Authority, CFP Board states.

The consumer-tested letters include input from CFPs “who requested sample engagement letters,” said CFP Board CEO Kevin Keller in a statement. The samples “use plain language to reduce consumer confusion, increase consumer trust, and reduce the number of questions a consumer may ask regarding the engagement.”