Obtaining Quantitative Information and Documents

200-2: Obtaining Quantitative Information and Documents

The divorce 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 divorce 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 otherPractice Standards.

 

Relationship of this Practice Standard to ADFP Boards Code of Ethics andRules of Conduct

This Practice Standard relates to ADFP 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

The public is served when divorce 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 Divorce Financial Planning Profession

Financial planning requires that recommendations be made based on sufficient and relevant quantitative data.  Therefore, compliance with this Practice Standardencourages the public to seek divorce financial planning practitioners who use divorce financial planning.

Upon the Divorce Financial Planning Practitioner

Sufficient and relevant quantitative information and documents provide the foundation for analysis. Ultimately, this will facilitate the development of appropriate recommendations.