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The Financial Plan Engagement Letter is a crucial document used in the Canadian financial services industry to formalize the professional relationship between financial advisors/planners and their clients. It is typically required when establishing new financial planning relationships or updating existing service arrangements. The document must comply with various Canadian regulatory requirements, including provincial Securities Act provisions, PIPEDA privacy regulations, and professional standards set by bodies such as FP Canada. The letter outlines essential elements including service scope, fees, responsibilities, privacy policies, and termination terms. It serves both as a legal protection mechanism and a clear communication tool to ensure mutual understanding between the parties involved.

1. Date and Address Block: Formal letter heading with current date and client's full name and address

2. Introduction and Client Recognition: Opening that identifies the client and confirms their engagement of financial planning services

3. Scope of Services: Detailed outline of the financial planning services to be provided, including specific areas to be covered (retirement, estate, tax, investment planning, etc.)

4. Our Process: Step-by-step explanation of how the financial planning process will work and what the client can expect

5. Fees and Compensation: Clear disclosure of all fees, charges, and compensation structure

6. Client Responsibilities: Outline of what is expected from the client, including providing accurate information and required documentation

7. Privacy and Confidentiality: Statement on how client information will be handled, stored, and protected in compliance with PIPEDA

8. Conflicts of Interest: Disclosure of any potential conflicts of interest and how they will be managed

9. Term and Termination: Duration of the engagement and how either party can terminate the relationship

10. Acknowledgment and Acceptance: Signature blocks for both advisor and client to confirm understanding and acceptance of terms