"requirement" for engagement

[thepensionmaven]

My client was just asked by their CPA to obtain an engagement letter as the TPA for the plan. The client was also told this is a "requirement".

I have been in business for over 25 years and have used an engagement letter once in that time. I have found that most clients will not sign.

My engagement is getting my fee up front. If there is a requirement to do a retainer/engagement letter, who is requiring??

[Guest Sieve]

No requirement, but it makes good business sense so that everyone knows who has which responsibilities/obligations, what testing will be done and what testing will not be done, the consequences of failing to provide appropriate and timely census data, the remedies if something is done wrong, etc., etc.

[Bill Presson]

My client was just asked by their CPA to obtain an engagement letter as the TPA for the plan. The client was also told this is a "requirement".

I have been in business for over 25 years and have used an engagement letter once in that time. I have found that most clients will not sign.

My engagement is getting my fee up front. If there is a requirement to do a retainer/engagement letter, who is requiring??

Sorry, but in financial matters, I just don't think an old fashioned handshake is good enough any more.

We won't take a client without a signed engagement letter.

[J Simmons]

Bill Presson's comment makes me wonder if it would be imprudent for plan fiduciaries making the arrangements with the TPA not to have a written engagement letter/contract that spells out those items that Sieve mentions?