Financial Plan and Investment Policy Statement Based on Scope of Engagement
The client’s written financial plan and investment policy statement is formalized based on information specific to goals and objectives within the scope of the engagement. The recommended investment strategies are based on a client’s risk tolerances, current asset allocations, investment time horizon and expected financial outcomes. The integration of these factors will result in a recommended investment strategy that represents the greatest probability of achieving the client’s goals and objectives; that are consistent with a client’s unique risk/return profile; and is consistent with the financial advisor’s ability to implement and monitor the stated financial plan.
The process of formalizing the investment strategy will require a financial advisor to rely on their education and experience to create a personalized solution to a client’s specific needs in light of their current situation. The process may involve multiple assumption scenarios, research and consultation with other professionals. The process may result in a single recommendation, multiple recommendations or no alternative recommendation from their current course of action. In the event a recommendation is provided, you can expect your financial advisor to:
When making a recommended plan of action, a financial advisor should take into account securities industry practices. A financial plan and investment policy statement should focus on client goals and objectives. An effective written financial plan and investment policy statement provides a map to follow along with responsibilities of the financial advisors who help you towards your True North.
