# Financial planning engagement letter that meets the CFP Board written terms

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By [Arthur Teboul](/authors/arthur-teboul), Founder, DokuTrak. Published 2026-10-28, updated 2026-10-28.

> **In brief:** A financial planning engagement letter sets the scope of the plan and its limits, the period you serve the client, what the client must provide, and how you are paid. For a CFP professional it is the usual way to give the written terms the CFP Board requires before or at the start of a planning engagement.

## The template: Financial planning engagement letter

**Not advice.** This page is general information, not tax, legal or HR advice. Rules change: check the cited source and ask your own professional before you rely on it. Last reviewed October 25, 2026.

Pick planning or advice-only in the first clause, keep one compensation option and fill each [placeholder]. If your firm is a registered adviser, check the letter against your brochure, and have compliance or your lawyer review it once.

```text
[Firm name]
[Firm address]
[Date]
[Client name(s)]
[Client address]
Re: Terms of our financial planning engagement

Dear [Client name(s)],

Who we are
[Planner name], CFP®, will lead this engagement for [Firm name], [a registered investment adviser with the SEC / registered in (state) / not a registered investment adviser]. Where this letter says “you”, it means each client named above.

Type of engagement
This is a financial planning engagement. We will look at your circumstances as a whole and make recommendations that work together. As a CFP® professional, [Planner name] acts as a fiduciary, and puts your interests first, whenever giving you financial advice.

Scope of the plan
The plan will cover: [cash flow and budgeting], [retirement], [tax planning], [insurance and risk], [education funding], [estate planning] and [investments]. It will not cover [areas excluded]. We do not draft legal documents or prepare tax returns; we will tell you when you need an attorney or a CPA for that.

Joint clients (optional)
Because we serve you as a couple, we may share with each of you what either of you tells us about your joint finances. If your goals conflict, we will raise it with both of you, and we may end the engagement if we cannot serve you both fairly.

Period of services
We will start on [start date], present the written plan by [plan delivery date], and [meet with you to review it every (frequency) until (end date) / end the engagement once the plan is delivered]. The engagement renews only if we both agree in writing.

Implementation and monitoring
Option A: you will carry out the recommendations yourself or with other professionals, and we will not monitor or update them after we deliver the plan. Option B: we will put in place the recommendations listed in Schedule 1 and review them with you every [frequency], updating them when your circumstances change.

What we need from you
By [date], please send the items on the attached list: tax returns, pay stubs, account statements, insurance policies, and estate documents. Your plan will rely on what you send, and we will not verify it. Please tell us within [number] days of any material change, such as a new job, a move, a birth, a death or an inheritance. You make the final call on every recommendation.

How we are paid
Option A: a flat planning fee of [amount], half due when you sign and half when we deliver the plan. Option B: [amount] per hour, billed [monthly]. Option C: [percentage] a year of assets we manage, billed [quarterly in advance]. We [receive / do not receive] other pay in connection with this engagement, namely: [commissions on (products), referral fees from (party), none]. Products we recommend may carry other costs that you pay, such as fund management fees, surrender charges or sales loads; we will tell you of them before you buy.

Referrals to other professionals
If we refer you to another professional, such as an attorney, a CPA or an insurance agency, we will tell you before the referral whether we, our firm or a related party receive any pay or other benefit for it. [We currently receive: (describe) / We receive none.]

Public record
[Planner name] [has no public discipline or bankruptcy to disclose / has the following public discipline or bankruptcy: (describe)]. The public record can be viewed at [CFP Board profile URL], [FINRA BrokerCheck URL] and [SEC adviser search URL]. We will tell you within 90 days of any change.

Conflicts of interest
We have the following material conflicts of interest: [describe each conflict, for example a commission on an insurance product we recommend]. We manage them by [describe]. By signing, you confirm that you understand them and agree to proceed. [Our Form ADV Part 2 brochure, delivered on (date), describes them in more detail.]

Privacy
We keep your non-public personal information confidential. We share it only as our privacy policy allows, for example with the custodian of your accounts to carry out your instructions, or with professionals you name, such as your CPA or attorney, after you agree. Our privacy notice is enclosed, and we will send it again at least once a year unless our policies have not changed. Please send documents through [secure upload method] rather than plain email.

Ending the engagement
Either of us may end this engagement by written notice. We will refund any prepaid fee for work not yet done, on a [prorated] basis, and return your original documents within [number] days.

Disputes and governing law (optional)
This letter is governed by the laws of [state]. We agree to try to settle any dispute through [mediation] before [arbitration / court] in [county, state].

Signatures
Please sign and date below to accept these terms, and keep a copy. Nothing in this letter waives a right you have under federal or state securities law.

With best regards,
[Planner name], CFP®
[Firm name]
Signature: ____________________   Date: __________
Accepted by [Client name]: ____________________   Date: __________
Accepted by [Second client name]: ____________________   Date: __________
```

Download: [Word](https://dokutrak.com/downloads/pseo-v2/f2-engagement-letters/financial-planning.docx) · [PDF](https://dokutrak.com/downloads/pseo-v2/f2-engagement-letters/financial-planning.pdf)

## Planning engagement or advice-only engagement

Start by naming the kind of work. The CFP Board treats the two kinds in different ways. **Financial advice** is a communication that would reasonably be viewed as a recommendation to take or skip a course of action ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)). By contrast, **financial planning** is a joint process that weaves the client’s whole financial picture into advice aimed at life goals ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)).

When the advice requires financial planning, the terms of the engagement go in writing, in one or more documents ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)). When it does not, some disclosures may be given orally ([CFP Board: Disclosures to clients, what and when](https://www.cfp.net/ethics/compliance-resources/2019/08/disclosures-to-clients---what-and-when)). A broker who sells one annuity is in the second case. A planner who builds a retirement and estate plan is in the first.

The CFP Board publishes sample letters for both cases: two for planning, one fee-only and one for a dual registrant, and one for advice by a registered representative ([CFP Board: Sample engagement letters for financial planning and financial advice](https://www.cfp.net/ethics/compliance-resources/2021/11/sample-engagement-letters-for-financial-planning-and-financial-advice)). It also says not to send them as written ([CFP Board: Sample engagement letters for financial planning and financial advice](https://www.cfp.net/ethics/compliance-resources/2021/11/sample-engagement-letters-for-financial-planning-and-financial-advice)). Use them as a check, then write terms that match how your firm works.

## What the CFP Board expects the letter to state

Each line in the table maps a clause of the template to the disclosure it covers. The first four rows come from the planning duty itself. The rest apply to advice in general, so a planning letter carries them too.

| Clause in the template | What it must say | Where the duty comes from |
| --- | --- | --- |
| Scope of engagement | The planning areas covered and any limits on them | Terms of the engagement for financial planning ([CFP Board: Disclosures to clients, what and when](https://www.cfp.net/ethics/compliance-resources/2019/08/disclosures-to-clients---what-and-when)) |
| Period of services | When the plan is delivered and how long reviews go on | The period during which services are provided ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)) |
| Client responsibilities | Data the client gives, changes the client reports | Client responsibilities in the terms ([CFP Board: Disclosures to clients, what and when](https://www.cfp.net/ethics/compliance-resources/2019/08/disclosures-to-clients---what-and-when)) |
| Implementation and monitoring | Who carries out and updates each recommendation | The planner is responsible unless the scope excludes it ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)) |
| Compensation | How the planner, the firm and any related party are paid | Description of compensation and costs ([CFP Board: Disclosures to clients, what and when](https://www.cfp.net/ethics/compliance-resources/2019/08/disclosures-to-clients---what-and-when)) |
| Conflicts and other material facts | Material conflicts, anything else that bears on hiring you | Disclosure of material conflicts of interest ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)) |
| Public record | Any public discipline or bankruptcy, and the web pages that show it | Written information for financial planning ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)) |
| Privacy | Your policies on non-public personal information | Written privacy notice at the engagement, then yearly ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)) |
| Referral benefits | Pay you get for referring the client to someone else | Disclosure of economic benefit for a referral ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)) |

## The implementation clause sets your ongoing duty

This clause matters most once the letter is signed. Under the CFP Board standards, the planner is responsible for implementing, monitoring and updating the recommendations unless the scope of engagement excludes it ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)). Silence means you own it.

So write it as a choice. If the engagement is a one-time plan, say the client will carry out the recommendations, alone or with other professionals, and that you will not monitor them. If you manage the accounts, say which recommendations you put in place and how often you review them, for example each quarter or each year.

The AICPA takes a similar line for CPA planners. Its sample personal financial planning letter covers the creation of the plan, and it treats implementation as a separate engagement that generally needs its own letter ([AICPA: Sample personal financial planning engagement letter](https://www.aicpa-cima.com/resources/download/sample-general-engagement-letter)).

## Fees, other pay and conflicts in plain words

Write the fee the way the client will see it on a bill. A flat fee, an hourly rate, a yearly retainer and a fee on assets under management each need two lines. One says when you bill. The other says when the client gets money back.

Then list every other way the firm or a related party is paid, such as commissions on insurance or referral fees from another adviser ([CFP Board: Disclosures to clients, what and when](https://www.cfp.net/ethics/compliance-resources/2019/08/disclosures-to-clients---what-and-when)). Name the other costs the client may pay on products, such as fund management fees, surrender charges and sales loads ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)). The CFP Board limits the label **fee-only** to a planner whose firm and related parties take no sales-related pay ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)). If you take a commission, do not use the label.

A **material conflict of interest** is one a reasonable client would want to know about before hiring you. Disclose it fully, get the client’s consent and say how you manage it ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)). If your firm is registered with the SEC as an investment adviser, you must deliver your Form ADV Part 2 brochure before or at the time you sign the advisory contract ([17 CFR 275.204-3, Delivery of brochures and brochure supplements](https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.204-3)). An SEC-registered adviser must also deliver its Form CRS to a retail investor by the same point ([17 CFR 275.204-5, Delivery of Form CRS](https://www.law.cornell.edu/cfr/text/17/275.204-5)). Send both with the letter. Then keep the documents saying the same thing.

Two more items belong in the written terms. The first is any **public discipline** or bankruptcy, with the web pages where the record can be read ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)). The second is a written notice of your privacy policies, given at the engagement and then at least yearly unless the policies and sharing are unchanged ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)).

## The documents the plan depends on

A plan is only as good as the data behind it. Put the list in the letter with a due date before the first planning meeting. Say that the plan will reflect only what the client sent.

Ask for the latest statement of each account, not a year-end copy from long ago. A plan built on an old balance gives the wrong savings target. If the client cannot find a policy or a trust, note the gap in the plan rather than guess. Ask again before the review meeting, so each update starts from fresh numbers.

- Federal tax returns for the last two years, with all schedules.
- Recent pay stubs for each earner, and the employer benefits summary.
- Bank, brokerage and retirement plan statements, the latest for each account.
- For retirees, Form 1099-R and Form SSA-1099 for the last tax year.
- The current mortgage statement and any other loan statements.
- Life, disability, long-term care and property insurance policies.
- Wills, trusts and powers of attorney, with the date each was signed.

## Questions people ask

### Does the CFP Board require a written engagement letter?

It requires written terms of engagement when the financial advice requires financial planning, given in one or more written documents ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)). An engagement letter is one way to meet that duty, not the only one ([CFP Board: Sample engagement letters for financial planning and financial advice](https://www.cfp.net/ethics/compliance-resources/2021/11/sample-engagement-letters-for-financial-planning-and-financial-advice)).

### What must a financial planning engagement letter include?

The scope and its limits, the period of services, the client’s responsibilities, who implements and monitors the recommendations, how the planner and firm are paid, and any material conflicts ([CFP Board: Disclosures to clients, what and when](https://www.cfp.net/ethics/compliance-resources/2019/08/disclosures-to-clients---what-and-when)).

### Is a financial planner responsible for implementing the plan?

A CFP professional is responsible for implementing, monitoring and updating the recommendations unless the scope of engagement excludes it ([CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct)). The letter should say plainly which applies.

### Can I use the CFP Board sample letters as they are?

The CFP Board says it does not intend the samples to be sent as written ([CFP Board: Sample engagement letters for financial planning and financial advice](https://www.cfp.net/ethics/compliance-resources/2021/11/sample-engagement-letters-for-financial-planning-and-financial-advice)). Adapt the scope, the pay and the conflicts to your own firm, then have your compliance team or lawyer review the result.

## Sources

- [CFP Board Code of Ethics and Standards of Conduct](https://www.cfp.net/ethics/code-of-ethics-and-standards-of-conduct): Written terms of engagement for financial planning, the planner’s duty to implement and monitor unless excluded, the fiduciary duty, conflict disclosure, the fee-only label and the definitions of financial advice and financial planning.
- [CFP Board: Disclosures to clients, what and when](https://www.cfp.net/ethics/compliance-resources/2019/08/disclosures-to-clients---what-and-when): The information to give a client before or at the engagement, including compensation and, for financial planning, the scope, period of services and client responsibilities.
- [CFP Board: Sample engagement letters for financial planning and financial advice](https://www.cfp.net/ethics/compliance-resources/2021/11/sample-engagement-letters-for-financial-planning-and-financial-advice): The CFP Board offers sample planning and advice letters, does not intend them to be sent as written, and notes a letter is one way to meet the duty to provide information.
- [17 CFR 275.204-5, Delivery of Form CRS](https://www.law.cornell.edu/cfr/text/17/275.204-5): An SEC-registered investment adviser delivers its current Form CRS to each retail investor before or at the time it enters into an investment advisory contract.
- [AICPA: Sample personal financial planning engagement letter](https://www.aicpa-cima.com/resources/download/sample-general-engagement-letter): The AICPA sample letter covers the development of a personal financial plan; implementation is a separate engagement that generally needs a new letter.
- [17 CFR 275.204-3, Delivery of brochures and brochure supplements](https://www.ecfr.gov/current/title-17/chapter-II/part-275/section-275.204-3): An SEC-registered investment adviser delivers its Form ADV Part 2 brochure before or at the time it enters into an advisory contract with the client.

## More on this topic

- [Client document collection for financial advisors](/blog/client-portal-financial-advisors)
- [Engagement letter template (general)](/blog/engagement-letter-template)
- [Engagement letter templates by service](/templates/engagement-letters)

## About the author

Arthur Teboul (Founder, DokuTrak) is building DokuTrak after watching professionals lose hours chasing clients for documents over email. [Arthur Teboul](/authors/arthur-teboul).

How this page was made (methodology): it is built from the primary sources listed under Sources, and every rule and figure on it links to the source it comes from. Last updated October 25, 2026. Spotted an error or a rule that changed? [Contact us](/contact).

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