CIFPs conference update: Planner’s

By Jennifer McLaughlin | June 5, 2003 | Last updated on June 5, 2003
4 min read
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    Geller advised not only documenting what you say to clients, but also to use regular stock phrases in your notes. He used his own legal practice as an example, where he has a call log where he writes down every phone call. New prospective clients calling in are always told the same thing.

    Geller doesn’t provide legal advice on the spot because he doesn’t know all the facts of the situation. Before he does offer any legal advice, a prospective client must hire him and provide a retainer fee. Then, in his call log, he will write in “retainer.” Should someone who didn’t hire him ever decide to sue, he can return to his call log. When a judge asks to identify what he meant by the note “retainer,” Geller can explain that he told the client no advice can be provided until the retainer is paid. “How do I know I said this?” Geller asked. “Because every time I write ‘retainer’ in my book, that’s what it means. A judge will believe that.” Geller also notes how long each conversation is and any other pertinent information.

    Geller suggested advisors find similar ways to set up structure to their practices. Call logs and similar tracking methods should have numbered pages to show that no pages were torn out of the log. “KYC [forms] are the minimum requirement,” Geller added. “They are not protection. You must proactively advise clients.”

    Finally, Geller noted that planners must define the parameters of their business. “Are you qualified to provide tax planning?” Geller asked the group. “If not, make sure you clearly explain in writing to the client why you have been retained and your boundaries. Tell them any tax planning advice you offer should be checked with a tax specialist.”

    • • •

    Jennifer McLaughlin, Advisor’s Edge, jmclaughlin@rmpublishing.com.

    (06/05/03)

    Jennifer McLaughlin

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  • Planner’s “worst nightmare” offers advisors tips on avoiding lawsuits
  • What is a financial planner?

    Back to CIFP conference coverage mainpage

    Geller advised not only documenting what you say to clients, but also to use regular stock phrases in your notes. He used his own legal practice as an example, where he has a call log where he writes down every phone call. New prospective clients calling in are always told the same thing.

    Geller doesn’t provide legal advice on the spot because he doesn’t know all the facts of the situation. Before he does offer any legal advice, a prospective client must hire him and provide a retainer fee. Then, in his call log, he will write in “retainer.” Should someone who didn’t hire him ever decide to sue, he can return to his call log. When a judge asks to identify what he meant by the note “retainer,” Geller can explain that he told the client no advice can be provided until the retainer is paid. “How do I know I said this?” Geller asked. “Because every time I write ‘retainer’ in my book, that’s what it means. A judge will believe that.” Geller also notes how long each conversation is and any other pertinent information.

    Geller suggested advisors find similar ways to set up structure to their practices. Call logs and similar tracking methods should have numbered pages to show that no pages were torn out of the log. “KYC [forms] are the minimum requirement,” Geller added. “They are not protection. You must proactively advise clients.”

    Finally, Geller noted that planners must define the parameters of their business. “Are you qualified to provide tax planning?” Geller asked the group. “If not, make sure you clearly explain in writing to the client why you have been retained and your boundaries. Tell them any tax planning advice you offer should be checked with a tax specialist.”

    • • •

    Jennifer McLaughlin, Advisor’s Edge, jmclaughlin@rmpublishing.com.

    (06/05/03)