Client Engagement and Effective Note Taking

FP Canada has set standards for terms of engagement with clients.

Rule (11) A Certificant shall comply with the established terms of engagement (oral or written).

"Practice Standards PS.2 Define the Terms of the Engagement "The Certificant will work with the client to define and agree on the scope of the financial planning engagement, whether an initial or review engagement."

What is required to be in your letter of engagement in accordance with practice standards? (also see Rule 7 and Rule 20). Is it necessary for the terms of engagement to be in a formal document? What are the steps suggested to ensure best practices according to the FPCanada when presenting terms of engagement? What consequences may arise if best practices are not followed? How do you protect yourself from liability when you have an oral engagement with a client?

Suggested length for your initial response to the question is approximately 150 to 300 words.