The Financial Plan Engagement Letter is a crucial document used when establishing a professional financial planning relationship with clients in England and Wales. It serves as the foundational agreement detailing the scope of services, fee structures, and mutual obligations while ensuring compliance with FCA regulations and UK financial services laws. This document is essential for protecting both the advisor and client interests, providing clarity on service deliverables, and meeting regulatory requirements for financial services provision. It should be used at the commencement of any new financial planning relationship or when significantly modifying existing arrangements.

1. Date and Address Block: Client and firm contact details and formal letter date

2. Client Information: Details of the client(s) and any related parties covered by the engagement

3. Scope of Financial Planning Services: Detailed outline of the financial planning services to be provided

4. Fee Structure and Payment Terms: Clear explanation of all fees, charges and payment arrangements

5. Service Standards and Deliverables: Specific commitments regarding service quality and expected deliverables

6. Duration of Engagement: Term of the engagement and any renewal provisions

7. Confidentiality Commitment: Provisions regarding the handling of confidential information

8. Regulatory Status and FCA Registration: Statement of firm's regulatory status and FCA registration details

9. Client Categorisation: Classification of client under FCA rules

10. Termination Provisions: Conditions and process for terminating the engagement

11. Signature Blocks: Space for client and firm signatures to confirm agreement