In establishing the client-planner relationship, which document is required to be in writing to disclose all material information?

In establishing the client-planner relationship, which document is required to be in writing to disclose all material information?

• A. Signed engagement letter
• B. Written disclosure of all material information
• C. Email copy
• D. Verbal confirmation

Answer: (B)

The main idea is that before forming a client-planner relationship, there must be a written disclosure of all material information. This written document ensures the client receives a complete, verifiable record of all material facts that could affect their decision to engage the planner—covering who is providing what services, how compensation or conflicts of interest may arise, and any limitations or risks. It creates transparency and a clear basis for consent. An engagement letter documents terms like scope and fees, but it isn’t the required disclosure of all material information. Email copies and verbal confirmations don’t provide a formal, durable written record of all material factors either, so they don’t meet this specific requirement.

The main idea is that before forming a client-planner relationship, there must be a written disclosure of all material information. This written document ensures the client receives a complete, verifiable record of all material facts that could affect their decision to engage the planner—covering who is providing what services, how compensation or conflicts of interest may arise, and any limitations or risks. It creates transparency and a clear basis for consent.

An engagement letter documents terms like scope and fees, but it isn’t the required disclosure of all material information. Email copies and verbal confirmations don’t provide a formal, durable written record of all material factors either, so they don’t meet this specific requirement.