How should a CFP obtain consent for a financial planning disclosure that could affect the client?

• A. Verbal agreement only
• B. No consent needed
• C. Informed, written or documented consent that explains the conflict and impact
• D. Consent from other professionals

Answer: (C)

When a financial planning disclosure could affect the client, the adviser must obtain informed consent that is written or otherwise documented. This ensures the client understands the nature of the conflict, how it could influence recommendations or decisions, and the options available to address or mitigate the impact. A written or documented form creates a verifiable record, protecting both the client and the adviser against misunderstandings or disputes and demonstrating that the client was adequately informed before proceeding. Verbal agreement alone lacks a durable record and may not fully establish that the client truly understood the conflict and its implications. Consent from other professionals does not substitute for the client’s own consent or address the client’s right to be fully informed. The consent should be obtained before implementing the plan or disclosure and should clearly outline the conflict, its potential impact, and the choices the client can make.