As a financial advisor, you need to protect both yourself and your clients by having a clear and concise financial advisory agreement in place. This agreement outlines the terms and conditions of your services, as well as the responsibilities of both parties. A financial advisory agreement template can help ensure that all relevant information is included and that the agreement is legally binding.
First and foremost, it`s important to include a clear scope of services section in the agreement. This will help set expectations for your clients and ensure that you`re both on the same page regarding what services you`ll provide. This section should be specific and include details such as financial planning, investment management, and any other services you offer.
Next, you`ll want to include a compensation section that outlines how you`ll be paid for your services. This can be a percentage of assets under management, an hourly rate, or a flat fee. Be sure to include any additional fees or expenses that clients may be responsible for and clearly state how they will be charged.
Thirdly, include a termination clause in the agreement. This protects both parties by establishing clear terms for ending the relationship. The termination clause should outline how the agreement can be terminated, how much notice must be given, and any fees associated with termination.
Another important section to include in the agreement is a confidentiality clause. This ensures that all financial information shared with you by your clients will be kept confidential and not disclosed to any third parties.
Lastly, include a liability and indemnification section that outlines your responsibilities, liabilities, and limitations of liability. This section should outline your responsibilities in the event of a dispute or lawsuit and clarify the limitations of your liability.
By utilizing a financial advisory agreement template, you can save time and ensure that all relevant information is included in your agreement. Be sure to customize the template to fit your specific services and needs. A well-written and legally binding agreement can help protect your business and ensure a successful relationship with your clients.