`
`Financial Planning Practice Standards Overview
`100 Series: Establishing and Defining the Relationship with the Client
`200 Series: Gathering Client Data
`300 Series: Analyzing and Evaluating the Client's Financial Status
`400 Series: Developing and Presenting the Financial Planning Recommendation
`500 Series: Implementing the Financial Planning Recommendation(s)
`600 Series: Monitoring
`
`GATHERING CLIENT DATA
`2001: DETERMINING A CLIENT'S PERSONAL AND FINANCIAL GOALS, NEEDS
`AND PRIORITIES
`
`The financial planning practitioner and the client shall mutually define the client's personal and financial goals, needs and
`priorities that are relevant to the scope of the engagement before any recommendation is made and/or implemented.
`
`Explanation of this Practice Standard
`Prior to making recommendations to the client, the financial planning practitioner and the client shall mutually define the
`client's personal and financial goals, needs and priorities. In order to arrive at such a definition, the practitioner will need to
`explore the client's values, attitudes, expectations, and time horizons as they affect the client's goals, needs and
`priorities. The process of "mutuallydefining" is essential in determining what activities may be necessary to proceed with
`the client engagement. Personal values and attitudes shape the client's goals and objectives and the priority placed on
`them. Accordingly, these goals and objectives must be consistent with the client's values and attitudes in order for the
`client to make the commitment necessary to accomplish them.
`
`Goals and objectives provide focus, purpose, vision and direction for the financial planning process. It is important to
`determine clear, and measurable objectives that are relevant to the scope of the engagement. The role of the practitioner
`is to facilitate the goalsetting process in order to clarify, with the client, goals and objectives. When appropriate, the
`practitioner shall try to assist clients in recognizing the implications of unrealistic goals and objectives.
`
`This Practice Standard addresses only the tasks of determining the client's personal and financial goals, needs and
`priorities; assessing the client's values, attitudes and expectations; and determining the client's time horizons. These
`areas are subjective and the practitioner's interpretation is limited by what the client reveals.
`
`This Practice Standard shall not be considered alone, but in conjunction with all other Practice Standards.
`
`Effective Date
`Original version, January 1, 1999. Updated version, January 1, 2002.
`
`Relationship of this Practice Standard to CFP Board's Code of Ethics and Rules of Conduct
`This Practice Standard relates to CFP Board's Code of Ethics and Rules of Conduct through Principle 7 Diligence and
`Rules 3.3, 4.4 and 4.5
`
`Anticipated Impact of this Practice Standard Upon the Public
`
`Plaid Technologies Inc.
`Exhibit 1015
`
`Ex. 1015 Page 1
`
`
`
`The public is served when the relationship is based upon mutually defined goals, needs and priorities. This Practice
`Standard reinforces the practice of putting the client's interests first which is intended to increase the likelihood of
`achieving the client's goals and objectives.
`
`Upon the Financial Planning Profession
`Compliance with this Practice Standard emphasizes to the public that the client's goals, needs and priorities are the focus
`of financial planning. This encourages the public to seek out the services of a financial planning practitioner who uses
`such an approach.
`
`Upon the Financial Planning Practitioner
`The client's goals, needs and priorities help determine the direction of inancial planning. This focuses the practitioner on
`the specific tasks that need to be accomplished. Ultimately, this will facilitate the development of appropriate
`recommendations.
`
`2002: OBTAINING QUANTITATIVE INFORMATION AND DOCUMENTS
`
`The financial planning practitioner shall obtain sufficient quantitative information and documents about a client relevant to
`the scope of the engagement before any recommendation is made and/or implemented.
`
`Explanation of this Practice Standard
`Prior to making recommendations to the client and depending on the scope of the engagement, the financial planning
`practitioner shall determine what quantitative information and documents are sufficient and relevant.
`
`The practitioner shall obtain sufficient and relevant quantitative information and documents pertaining to the client's
`financial resources, obligations and personal situation. This information may be obtained directly from the client or other
`sources such as interview(s), questionnaire(s), client records and documents.
`
`The practitioner shall communicate to the client a reliance on the completeness and accuracy of the information provided
`and that incomplete or inaccurate information will impact conclusions and recommendations.
`
`If the practitioner is unable to obtain sufficient and relevant quantitative information and documents to form a basis for
`recommendations, the practitioner shall either:
`
`A. Restrict the scope of the engagement to those matters for which sufficient and relevant information is available;
`or
`B. Terminate the engagement.
`
`The practitioner shall communicate to the client any limitations on the scope of the engagement, as well as the fact that
`this limitation could affect the conclusions and recommendations.
`
`This Practice Standard shall not be considered alone, but in conjunction with all other Practice Standards.
`
`Effective Date
`Original version, January 1, 1999. Updated version, January 1, 2002.
`
`Relationship of this Practice Standard to CFP Board's Code of Ethics and Rules of Conduct
`This Practice Standard relates to CFP Board's Code of Ethics and Rules of Conduct through Principle 7 Diligence and
`Rules 3.3, 4.4 and 4.5
`
`Anticipated Impact of this Practice Standard
`
`Upon the Public
`
`Ex. 1015 Page 2
`
`
`
`The public is served when financial planning recommendations are based upon sufficient and relevant quantitative
`information and documents. This Practice Standard is intended to increase the likelihood of achieving the client's goals
`and objectives.
`
`Upon the Financial Planning Profession
`Financial planning requires that recommendations be made based on sufficient and relevant quantitative data. Therefore,
`compliance with this Practice Standard encourages the public to seek financial planning practitioners who use financial
`planning.
`
`Upon the Financial Planning Practitioner
`Sufficient and relevant quantitative information and documents provide the foundation for analysis. Ultimately, this will
`facilitate the development of appropriate recommendations.
`
`Next: Practice Standards Series 300 >
`
`© Certified Financial Planner Board of Standards, Inc. All Rights Reserved. 1425 K Street NW #800, Washington, DC 20005 | phone:
`8004871497 (TollFree) / 2023792200 | fax: 2023792299 | mail@cfpboard.org
`
`Ex. 1015 Page 3