Plan Monitoring and Updating Responsibility

Course: Fundamentals of Financial Planning
Lesson 9: CFP Board Regulatory Requirements

Student Question:

In Lesson 1, for Step 7, I have that a certificant is responsible for monitoring and updating only if explicitly called for in the scope of the engagement.  In Lesson 9, I’m reading that the certificant is responsible unless explicitly excluded. Which is correct?
 
Thanks

Ginny

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Instructor Response:

Hi Ginny,
 
Thank you for your question.  These two Practice Standards can seem ambivalent, if not contradictory, but they are not.  CFP Board distinguishes between these Practice Standards as follows:

• Practice Standard C-6(a) imposes the duty to establish client/Certificant implementation responsibilities upon the Certificant. 
• Practice Standard A-10(b) focuses upon exactly how the Certificant’s duties are established.   If these duties are not specifically defined in the Scope of Engagement, the default assumption is that the Certificant is responsible for implementation, monitoring and updating.  These duties must be specifically excluded from the Certificant’s responsibilities under the Scope of Engagement for the Certificant to be relieved of these duties. 

Let me know how fully this addresses your question

Onward and Upward,

Bruce

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