Financial Advisor Agreement

I. Introduction

This Financial Advisor Agreement (“Agreement”) is made and entered into as of [Date] by and between [Client Name] (“Client”) and [Your Company Name] (“Advisor”). The Advisor is duly registered as a financial advisor, offering a comprehensive range of financial planning, investment management, and advisory services. This Agreement outlines the terms and conditions under which the Advisor will provide services to the Client, ensuring clarity and mutual understanding in the financial advisory relationship.

II. Services Provided

A. Scope of Services

The Advisor agrees to provide the following services to the Client:

1. Investment Management

   • Develop and implement a personalized investment strategy tailored to the Client's financial goals, risk tolerance, and investment horizon.

   • Monitor and manage investment portfolios on an ongoing basis to optimize returns and mitigate risks, including periodic rebalancing as market conditions change.

   • Provide regular performance reports detailing portfolio performance, asset allocation, and adherence to the investment strategy.

2. Financial Planning

   • Conduct a comprehensive financial assessment of the Client’s current financial situation, including income, expenses, assets, and liabilities, to establish a clear baseline for planning.

   • Offer detailed financial planning services, including retirement planning, tax strategies, risk management, and estate planning to ensure a holistic approach to financial health.

   • Create a personalized financial plan that includes specific goals, timelines, and actionable steps, enabling the Client to track progress effectively.

3. Regular Reviews

   • Conduct periodic reviews (at least quarterly) of the Client’s financial situation and investment performance, adjusting strategies as necessary based on changing financial goals, market conditions, and personal circumstances.

   • Offer ongoing education and insights into market trends and economic conditions that may impact the Client’s financial objectives.

B. Customization of Services

The Advisor recognizes that each Client has unique needs and objectives; therefore, the Advisor may modify the services offered based on the Client’s specific requirements. Any changes to the scope of services will be documented in writing to ensure that both parties agree to the adjustments.

III. Compensation

A. Fee Structure

1. Advisory Fees

   • The Client agrees to pay the Advisor a fee based on a percentage of assets under management, specifically [1%] annually, calculated on a quarterly basis. For example, if the Client’s portfolio is valued at [$500,000], the annual fee would be [$5,000].

   • Alternatively, the Client may opt for a flat fee arrangement of [$2,500] per year for comprehensive financial planning services, which includes the development and ongoing management of the financial plan.

2. Payment Terms

   • Fees will be billed quarterly in advance. For example, for an annual percentage fee of [1%], the quarterly invoice would be [$1,250] based on a portfolio value of [$500,000].

   • Payments are due within [30] days of the invoice date. If payments are not received by the due date, the Advisor reserves the right to suspend services until all outstanding amounts are paid.

B. Additional Costs

The Client acknowledges that additional costs may be incurred for third-party services, such as custodian fees, trading costs, or other investment-related expenses. These costs may vary based on the complexity of services provided and the type of investments made. The Advisor will provide transparency regarding these costs and will notify the Client in advance of any significant expenses.

IV. Client Responsibilities

A. Information Disclosure

The Client agrees to provide complete and accurate information regarding financial circumstances, investment objectives, and any other information pertinent to the Advisory relationship. Any changes in circumstances, including but not limited to changes in income, expenses, or financial goals, must be communicated to the Advisor promptly. This ongoing communication is essential for effective financial planning and investment management.

B. Investment Authority

The Client grants the Advisor discretionary authority to make investment decisions on their behalf within the agreed-upon investment strategy. This authority allows the Advisor to execute trades and manage the portfolio without obtaining prior consent for each transaction. However, the Advisor will keep the Client informed of significant transactions and changes to the investment strategy.

V. Term and Termination

A. Duration of Agreement

This Agreement will commence on the effective date and will remain in effect until terminated by either party. The initial term of this Agreement shall be [one year], after which it will automatically renew on an annual basis unless terminated in accordance with the provisions herein.

B. Termination Procedures

1. By the Client

   The Client may terminate this Agreement at any time with [30] days written notice. Upon termination, the Advisor will provide a final account statement and any remaining financial documents.

2. By the Advisor

   The Advisor may terminate this Agreement for any reason, including non-payment of fees or failure to provide necessary information, with [30] days written notice. In such cases, the Advisor will ensure a smooth transition of the Client's financial matters to another advisor or financial institution, if desired.

VI. Confidentiality

Both parties agree to maintain the confidentiality of all non-public information shared during the term of this Agreement. This includes, but is not limited to, financial data, personal identification information, and any other sensitive details. This obligation shall survive the termination of the Agreement, ensuring that all confidential information remains protected indefinitely.

VII. Dispute Resolution

A. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the state of [State]. Any disputes arising from this Agreement shall be subject to the jurisdiction of the courts of [State].

B. Mediation and Arbitration

In the event of any disputes arising from this Agreement, both parties agree to first attempt resolution through mediation conducted by a qualified mediator. If mediation fails, disputes shall be resolved through arbitration in accordance with the rules of the American Arbitration Association. The decision made through arbitration shall be binding and final.

VIII. Miscellaneous

A. Amendments

This Agreement may be amended only by a written document signed by both parties. Amendments will be documented and incorporated into this Agreement, ensuring that both parties acknowledge the changes.

B. Entire Agreement

This Agreement constitutes the entire agreement between the Client and the Advisor and supersedes all prior agreements, understandings, or negotiations. No representations or warranties, express or implied, have been made other than those expressly set forth in this Agreement.

C. Severability

If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. Both parties agree to replace any invalid provision with a valid one that most closely reflects the original intent of the parties.

IN WITNESS WHEREOF, the parties hereto have executed this Financial Advisor Agreement as of the date first written above.

Client
[Client Name]

Date:                              

[Your Company Name]
[Your Company Representative Name]
Date:                               

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