Q4A - Problem Set 4 - Solutions Q.1 Does a disclaimer in a...

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1 Problem Set 4 - Solutions Q.1 Does a disclaimer in a SoA serve to assist the client in any way? If so, how does it assist? In what way may a disclaimer assist the financial planner? Disclaimers assist both financial planners and clients to understand the basis for the services and advice provided. Disclaimers help to reduce the risk of potential disputes leading to litigation, as they provide the terms of engagement and the scope of services. They are included in the SoA for both professional and legal reasons. Whereas disclaimers may not entirely eliminate disputes arising with clients, they are very effective in creating a sense of professionalism, clarification and trust building. Q.2 In practice, it is common for a financial planner to prepare a SoA by cutting and pasting from another client’s SoA, or by using a template. What advantages and disadvantages can you foresee with this practice? There are a number of financial planning software packages that can be useful in enhancing the productivity of the financial planning team. Software packages can save the financial planner a significant amount of time in performing time- consuming calculations such as future income, retirement, tax and social security entitlement projections. They can also be used to provide the basis for document templates that can be customised for the specific needs and requirements of the planner and client. The advantages to a financial planner of using a template or cutting and pasting,
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Q4A - Problem Set 4 - Solutions Q.1 Does a disclaimer in a...

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