What action should a new CFP® professional take when offered an engagement outside their expertise?

A new CFP® professional should inform the client about the limits of their expertise and involve them in the process because this approach promotes transparency and trust in the client-advisor relationship. By clearly communicating their expertise boundaries, the CFP professional helps set realistic expectations for the client regarding the level of service that can be provided.

Involving the client in the decision-making process fosters collaboration and enables them to feel more engaged and informed. This does not mean that the professional has to execute the engagement on their own; rather, they can acknowledge areas where additional support or consultation may be necessary and seek assistance from colleagues or refer to more experienced professionals as needed. Taking this approach prioritizes the best interest of the client, ensuring they receive proper guidance while allowing the advisor to work within their competencies.

Moreover, declining the engagement outright or immediately referring the client to another professional might miss an opportunity to assist the client somewhat while building a rapport and demonstrating a commitment to their well-being. Accepting the engagement without informing the client adequately about the limits could lead to misunderstandings or potential conflicts later on.