Which of the following is not among a financial planner's obligations when establishing the client-planner relationship?

Which of the following is not among a financial planner's obligations when establishing the client-planner relationship?

• A. Identifying the services to be provided
• B. Describing how the planner will be compensated
• C. Deciding on the time frame of the engagement
• D. Having the client sign a written agreement

Answer: (D)

The key idea is that the relationship should be defined with clear expectations about what will be done, how fees are paid, and how long the engagement will last. Identifying the services to be provided sets the scope so the client knows what is included and what isn’t. Describing how the planner will be compensated creates transparency about fees and avoids surprises. Deciding on the time frame of the engagement establishes the duration and helps both parties plan their planning process and renewal or termination terms. Having the client sign a written agreement is strongly advisable and common practice, but it isn’t an absolute obligation required to establish the relationship. An agreement can be oral or documented later, though doing it in writing is usually recommended to memorialize the terms and prevent misunderstandings.

The key idea is that the relationship should be defined with clear expectations about what will be done, how fees are paid, and how long the engagement will last. Identifying the services to be provided sets the scope so the client knows what is included and what isn’t. Describing how the planner will be compensated creates transparency about fees and avoids surprises. Deciding on the time frame of the engagement establishes the duration and helps both parties plan their planning process and renewal or termination terms.

Having the client sign a written agreement is strongly advisable and common practice, but it isn’t an absolute obligation required to establish the relationship. An agreement can be oral or documented later, though doing it in writing is usually recommended to memorialize the terms and prevent misunderstandings.