Financial Planning Best Practices and Code of Ethics for Wealth Managers

Implementing and Reviewing Financial Plan Chapter 7 BFN4320 Wealth management and financial planning Dr. Sarina Preechalert, CFP

Outline Code of Ethics Implementing Personal Financial Plan Reviewing Personal Financial Plan 2

5 layers of wealth planning Estate Planning Wealth Distribution Investment Planning Wealth Accumulation Retirement Planning Wealth Protection Insurance Planning Wealth Protection Wealth Creation Consumption Planning 3

Code of Ethics https://www.marketingoops.com/reports/media-stat/personal-data-law-advertiser-must-learning/ https://all-free-download.com/free-vector/download/peoples-careers-icons-various-colored-types-hexagon-isolation_6826946.html

Code of Ethics 1. Integrity Be honest to client Record client information in details True information 5

Code of Ethics 2. Objectivity Reasonable Use theory and knowledge for client s advantages 6

Code of Ethics 3. Competency Know that you know Know that you don t know Update knowledge every 2 years 7

Code of Ethics 4. Fairness No discrimination No bias Disclose and open up to client 8

Code of Ethics 5. Confidentiality PDPA Keep it confidential unless get permission by client 9

Code of Ethics 6. Professionalism Show your license Keep your license 10

Code of Ethics 7. Diligence Be active, be careful both planner and team Empathy Elaborate in details with client 11

Letter of Engagement 12

Letter of Engagement 1. Specific Parties to the engagement: This engagement letter between: XXXXXX CFP professional and the client CFP professional, as agent for , xxxx company and the clients CFP and Contract Inc on behalf of Contract Inc s employee or client 13

Letter of Engagement 2. Assurance of Confidentiality: Please be assured that all information that you provide will be kept strictly confidential: By CFP professional Within the financial planning team of Financial Co, And will only be disclosed with your written permission. But: Client files are subject to review by Financial Co. supervisory and compliance departments. Client information may be shared with other financial service groups of Financial Co. CFP professional(s) may share client information with other professionals where CFP professional requires their expertise. 14

Letter of Engagement 3. Nature and scope of Services to be provided As we discussed: The financial planning services will include a review of your current financial situation, goals and objectives, and Cash and debt management Asset management Tax planning Risk management Estate planning Retirement planning The financial planning service also included: Implementation of the recommendations agreed upon by you The use of other professional advisors, when appropriate Regular view and monitoring of the financial plan 15

Letter of Engagement 4. Assumptions used will be presented in writing: Our written report will detail all the financial analysis, recommend strategies and set out the assumptions used in all calculations. In the presentation of our written report, we will include the details of any assumptions incorporated into all projections and/or calculations. 16

Letter of Engagement 5. Tenure and timeframe of the engagement Our professional relationship will Continue on and on-going basis, until either party submits written notification to terminate the engagement. For an X-month term, until Month/Date/Year Be completed with the presentation and review of the report. 17

Letter of Engagement 6. Compensation arrangements with respect to the Engagement The nature of my/our compensation is Fee-basis only, using an hourly rate of $________plus GST and disbursements. Based of a flat fee of $________. Fee and commission based on the sale of financial products. Commission only, based on the sale of financial products. Fee based in the value of assets under management. Salary only from Financial co. Salary and commission on the sale of financial products. And can be include receipt of referral fees. 18

Letter of Engagement 6. Compensation arrangements with respect to the Engagement Payment is due: Upon completion of all services Upon signing of this agreement Payable in 3 installment, $____due with acceptance of these term, $____due with the presentation of the report, and $______due upon the implementation. 19

Letter of Engagement 7. Conflict of Interest As a CFP professional, I act as agent for AJP Insurance and am authorized only to sell their products. I wish to advise you of this current conflict of interest: I am employed by Financial Co. and receive preferred compensation for selling their products. I am also the financial planner for John Smith, your partner in Smite and Co. That I have no conflicts of interest and will advise you in writing if this should charge. 20

Letter of Engagement 8. Client Responsibilities: In order that I/we may provide sound and appropriate financial planning, it is your responsibility to Provide full and accurate disclosure of all relevant information and documents in a timely manner. Advise on any material changes to your financial position, goals and objectives, employment , and any other relevant issues. And: (Select or adapt as appropriate) Any changes to the terms presented in this engagement letter will be advised in writing. 21

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