What should accompany a written financial plan to demonstrate due care?

• A. Clear rationale, supporting data, analysis steps, and disclosure of conflicts/compensation; documented client objectives.
• B. Only the client's goals.
• C. Only the final recommendations.
• D. A confidentiality checklist.

Answer: (A)

Demonstrating due care means the written financial plan shows the reasoning and evidence behind recommendations, not just the end result. It should include the documented client objectives, the supporting data used, the assumptions made, the steps of the analysis, and disclosures about conflicts of interest or compensation. This combination ensures transparency, shows you considered the client’s situation, used appropriate methods, and addressed potential incentives that could bias decisions. A plan that only lists goals lacks the analytical foundation, while a plan that only presents final recommendations omits the reasoning and data that justify them. A confidentiality checklist focuses on privacy but does not demonstrate the analytical process or alignment with the client's objectives.