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The engagement letter should cover: the engagement's purpose; precisely what the firm will and won't do (the project scope); duties of the client; known unfavorable situations; rates and estimations of billing; client's signature;
The engagement letter usually provides that the investment bank will act as the company's exclusive financial advisor (the "advisor" or "financial advisor"). The letter will describe the contemplated transaction and the scope of services to be provided by the advisor, as well as limits on its liability.
Summary. An engagement letter refers to a legal document that defines the relationship between a business providing professional services and its clients. Engagement letters set the terms of the agreement between two parties and include details such as the scope, fees, and responsibilities, among others.
What Is an Engagement Letter? An engagement letter is a written agreement that describes the business relationship to be entered into by a client and a company. The letter details the scope of the agreement, its terms, and costs. The purpose of an engagement letter is to set expectations on both sides of the agreement.
The letter of engagement for financial planning is a written, legally binding contract that outlines, in clear terms, the business relationship between the client and financial planner. It sets expectations for the partnership.