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1.5.2. Assist the client in selecting products and services for implementation.

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Once a financial plan has been developed it needs to be implemented. To put the plan
into an implementation mode the important thing to be understood is who has taken
on the responsibility of implementing the financial plan. In some cases the client
agreement with the financial planner is only to the extent of developing the financial
plan. The implementation is in the hands of the consumer. Broadly, three approaches
can be used:

1. The financial planner only develops the plan, the client is at liberty to implement
in a manner he or sees fit.
2. The financial planner develops the plan but arranges to get it implemented on
specific request by the client. He, therefore, needs to get in touch with various
financial service firms or brokerage firms. If there is an arrangement of
commission sharing then that must be disclosed to the client since all material
information must be shared with the client. In some cases the planner might
reduce the cost of the plan to the client since he is getting commission from
brokers.
3. In the final case the financial planner provides all services including that of
implementation, keeping the records up to date, providing regular
communication regarding performance of the portfolio and therefore has regular
charges for the same.
 4. The client must clearly state that he is in agreement with the plan and the
implementation instruments, process, assumptions and recommendation.
5. That the client acknowledges that he is fully conversant and in agreement with
the charges and expenses.
6. The client may also need to give a letter of authority to the planner authorizing
him to proceed with the implementation of the plan.

In the first two cases the records have to be primarily maintained by the client. There
are numerous software and spreadsheets available in the market such as OMNIMax
Professional, OMNIMax Lite, Advise America etc. Many financial sites like
www.moneycontrol.com, www.valueresearchonline.com, www.mutualfundsindia.com
too have software in terms of portfolio organizer that can help one organize one’s
portfolio and also calculate the rate of return etc.

For implementing the plan the client can either go to a broker, a professional money
manager/financial advisor. However, a financial Advisor/Professional Money
Manager/Financial Planner is the appropriate person to get the assistance in
implementation of a plan.

In the case when the client decides to get the plan implemented by the planner there
needs to be proper records and documentation. A formal agreement must also be
signed wherein:-

The reason for having such an elaborate system is to ensure that neither side is in
position to backtrack from earlier stated positions and that there is written evidence to
substantiate implementation process. In this case the parameters of implementation
are defined and a copy of the documentation given to the client as well. Because of
the above, the planner cannot renege on either his role or his responsibility. This is
vital to prevent fraud by the financial planner. On the other hand the client too cannot
refute the authority that he has given to the financial planner to implement the plan.
It is also important that during the whole process of implementation, a consultative
dialogue is maintained between the two and some sort of documentation with regard
to meeting is maintained. Above all for the implementation of the plan to proceed
smoothly, an atmosphere of trust needs to be maintained by both sides at all time.

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CFP Study Notes

• Introduction to Financial Planning

• Investment Planning
• Retirement Planning and Employee Benefits.
• Risk Analysis and Insurance Planning.
• Tax Planning & Estate Planning.
• Advance Financial Planning.
• What is CFP Certification?
• Advantage of CFP Certification.
• Pathway to CFP Certification.
• Challenge Status Program.
• Syllabus for CFP

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• Home
• CFP Study Notes
• Introduction to Financial Planning
• Investment Planning
• Retirement Planning and Employee Benefits.
• Risk Analysis and Insurance Planning.
• Tax Planning & Estate Planning.
• Advance Financial Planning.