Letter of Engagement for offering Financial Planning Service
This document is meant to provide client a better understanding of what may be expected from the financial planning exercise and our respective obligations within that process.
In general terms, financial planning process comprise of the following steps:
- Define the terms of our relationship
- Evaluate client’s present financial situation
- Understand client’s financial goals
- Identify financial problems & propose alternatives
- Prepare and present a detailed financial plan
- Monitor & review the plan periodically
Advisor is a SEBI registered Investment Advisor, offering Financial Planning & Investment Advisory service through the website viniyogindia.com
Being a Fee Only Advisor, execution of the plan will be outside the scope of this engagement. Advisor does not receive any commission for the financial products suggested in this report, and as such client may expect views to be unbiased.
Advisor is unaware of any conflict of interest arising out of the recommendations made in this report unless otherwise specified. Advisor is responsible for disclosing any future conflicts as soon as they comes to his knowledge.
Advisor is bound by professional secrecy and may not disclose any confidential information of the client without client’s consent, unless required by the law to do so OR unless client is found to violate terms and conditions specified in this agreement or in the website.
While preparing the financial plan, advisor may be required to make one or more assumptions. These may include but are not limited to, client’s retirement age, life expectancy, retirement income requirements, time-horizon, rate-of-return, inflation and income taxes. Advisor will make reasonable assumptions and disclose these to the client, who need to review, suggest changes if necessary and accept once satisfied.
Having reviewed client’s financial situation, advisor will document and present a detailed financial plan to the client. At the time of presenting the plan, advisor will discuss limitations of the present financial situation if any, propose alternatives as appropriate, review risks & rewards associated and costs involved. Client is obliged to inform advisor if she does not understand or agree with the above points.
Focus of the plan will be to design a solution that help client in achieving overall financial goals through optimal allocation of financial resources across asset classes and product types, without undue emphasis on purchasing specific financial products.
Some of the numbers stated in the report are based on assumptions made and information provided by the client that are subject to change over time. Therefore it is essential that the client gets the financial plan reviewed regularly, at least once a year, to ensure it is up-to-date and addresses client’s current needs.
Scope of this agreement covers initial creation of the financial plan and one mid-term review after six months. Any subsequent reviews may be requested by registering separate review requests through the website and paying necessary fees as applicable at the time of raising the request (Fees for review and update is 50% of new membership as on date)