Determining when statements on Responsibilities in Personal Financial Planning Practice apply.

Statements on Responsibilities in Personal Financial Planning Practice were created to support members providing PFP services. Although the final one in the series of five was issued 10 years ago, they are even more relevant today as an increasing number of Institute members offer services that involve developing recommendations and strategies to help clients achieve their financial goals. Services to which the SORs apply cover a wide array of areas, including budgeting and cash flow management, income tax planning, retirement and education funding, risk management, investment planning and estate planning.

Significance and Applicability

SORs, while not constituting enforceable standards under the AICPA Code of Professional Conduct Rule 202, offer broad guidance on what constitutes good practice for those members who provide PFP services. The SORs do not offer specific procedures, but rather provide a valuable framework for addressing the issues a member must consider when providing PFP services. Whether PFP is a member's primary practice focus or a part time or occasional service, it is important for all members to be aware of and to comply with these statements as they apply to all members providing PFP services, not only to those who hold the Personal Financial Specialist credential or are members of the PFP membership section.

And when is a member providing PFP services? The SORs define PFP services rather broadly: Basically, a member is providing PFP services whenever he or she is involved in developing strategies or making recommendations to assist a client in defining and achieving personal financial goals. These services would also include assisting the client in implementing such strategies and recommendations, monitoring progress toward established financial...