An investment advisory agreement is a crucial document that formally defines the relationship between a financial advisor and their client. It outlines the advisor’s roles and responsibilities, fee structure, and other terms of the engagement. With increasing investment products and complex regulations, having a well-drafted agreement protects both investor and advisor interests. This article explores the key components of an advisory agreement template and why they are essential for productive advisor-client partnerships.
Clearly State Services to be Provided to Align Expectations
The agreement should delineate all portfolio management, financial planning, and consulting services the advisor will provide. Outlining the scope prevents misunderstandings about what the advisor will and won’t do within the client engagement…
In today’s intricate financial landscape, an investment advisory agreement brings transparency to advisor-client relationships. Using a template as a guide while customizing for unique needs creates mutual understanding for productive long-term partnerships.