Ethics Practice Standards Part 2

Question 1

5th process - Implementing the financial planning rec’s

Standard 500-1 Agreeing on implementation responsibilities

Answer 1

Planner is responsible for providing timeline for implementation, (who does what when), but,

Client and Planner are Mutually responsible for implementation responsibilities.

Client is responsible for accepting or rejecting recommendations.

Planner is responsible for setting communication frequency/ and initiating communication regarding implementation progress and communicate frequently during this time.

Question 2

Process 5 implementation second step =

Standard 500-2 Selecting products and services for implementation

Answer 2

Planner must
Investigate alternatives, provide suitable solutions and ensure they possess the appropriate licenses and registrations for the products and services being recommended.

Question 3

6th step in process - Monitoring,

Standard 600-1 = Defining monitoring responsibilities

Answer 3

Effective monitoring (1) increases likelihood of client participation, (2) builds trust, & (3) lessens liability exposure

if client fails to implement, planner should be patient, and determine if/ how to provide addl support (education or counseling, discussing failure, changes in ideas or prioritization shifts…)

Question 4

more about monitoring techniques

Answer 4

keep up on changes in economy and tax laws
encourage clients to share life changing circumstances
keep aware of local / community news