Eduardo, a CFP professional, manages an $1,000,000 investment portfolio for his client, Anjoli. Eduardo is a fee-only planner who is compensated based on a percentage of the portfolio assets which he manages. Anjoli recently changed jobs and has asked Eduardo for advice regarding whether to leave her $800,000 401(k) in the employers qualified plan or roll the plan assets to a portfolio managed by Eduardo. Which of the following is the first action Eduardo should take?

Eduardo should research the investment options in the qualified plan to determine the quality of the options and any fees assessed within the plan, and compare those to the quality of investments and fees Anjoli would incur if she rolls the assets to a portfolio managed by Eduardo.

Eduardo should disclose to Anjoli that he has a conflict of interest in providing the advice in that if he recommends a rollover he will receive compensation for managing the assets but if he recommends she leave the assets in the qualified plan he will not be compensated.

Eduardo should advise Anjoli that he is not properly licensed to provide such advice.

Eduardo should ask Anjoli to obtain a copy of the qualified plans Summary Plan Description so that he can objectively review the advantages and disadvantages of leaving the assets in the plan.