Sample Financial Advisory Services Agreement

When it comes to financial advisory services, it`s important for both the client and the advisor to have a clear understanding of what is expected. This is where a financial advisory services agreement comes in. As a professional, I`ll be providing you with a sample financial advisory services agreement that can be used as a guide in drafting one for yourself.

What is a Financial Advisory Services Agreement?

A financial advisory services agreement is a legal document that outlines the terms and conditions of the relationship between a financial advisor and a client. It includes information on the services to be provided, the fees payable, and the responsibilities of both parties.

Why do You Need a Financial Advisory Services Agreement?

Having a financial advisory services agreement is important for several reasons. Firstly, it helps to establish clear expectations and responsibilities for both the advisor and the client. This ensures that everyone is on the same page and reduces the likelihood of misunderstandings and disputes.

Secondly, a financial advisory services agreement can help to protect both parties legally. In the event of a dispute, having a written agreement can make it easier to resolve the issue or even prevent it from escalating into a legal battle.

Sample Financial Advisory Services Agreement

Now that you understand the importance of a financial advisory services agreement, let`s take a look at a sample agreement that can be used as a guide:

1. Services

The advisor shall provide financial advisory services to the client, which will include but not be limited to:

a. Developing a financial plan that is tailored to the client`s specific financial goals and needs

b. Providing investment advice and guidance

c. Monitoring the performance of the client`s investments

d. Providing periodic updates and reports on the client`s financial situation

2. Compensation

The client shall pay the advisor fees for the services provided, which will be specified in a separate fee schedule. The fees may be based on a percentage of the assets managed or a flat fee, depending on the services provided.

3. Term

This agreement shall commence on the date of execution and shall continue until terminated by either party. Either party may terminate this agreement with 30 days` written notice.

4. Responsibilities

The advisor shall provide financial advice and guidance in good faith and with the utmost care and diligence. The advisor shall also maintain appropriate licenses and comply with all applicable laws and regulations.

The client shall provide accurate and complete information to the advisor, cooperate with the advisor in developing and implementing a financial plan, and promptly notify the advisor of any changes in their financial situation.

5. Confidentiality

The advisor shall maintain the confidentiality of all client information and shall not disclose any such information to third parties without the client`s express consent, except as required by law.

6. Limitation of Liability

The advisor shall not be liable for any losses incurred by the client as a result of market fluctuations or changes in economic conditions. The advisor shall also not be liable for any losses resulting from the client`s failure to follow the advisor`s recommendations.

Conclusion

A financial advisory services agreement is an important document that can help to establish clear expectations and protect both parties legally. This sample agreement can be used as a guide in drafting your own agreement. Remember to consult with an attorney before finalizing any legal document.