What information may a financial planner provide orally when establishing an engagement with a client?

In the context of establishing an engagement with a client, financial planners are typically required to disclose material conflicts of interest orally. This requires transparency and is essential for maintaining trust in the advisor-client relationship. By discussing material conflicts of interest, planners ensure that clients are fully informed about any factors that may affect the advice given, such as financial incentives tied to particular investments or products. This oral disclosure reinforces the planner's commitment to fiduciary duty and helps clients make informed decisions.

While a financial planner can certainly discuss their privacy policy, payment methods, and terms of engagement, it is critical that any material conflicts of interest are clearly conveyed, as they directly impact the advice provided and the integrity of the financial plan. This measure is in line with regulatory requirements, which emphasize the importance of disclosing potential conflicts prior to the client making any decisions based on the planner's recommendations.