Financial Advisor Agreement

The above things are the most important things you need to respect when reviewing your investment advisory contract. However, your agreement may also include sections for: An investment advisory contract describes the conditions under which you subscribe to the services of a financial advisor. This agreement is supposed to be some kind of plan for you as a client because it clarifies both what the financial advisor will do for you, such as general advice or recommendation of specific investment movements for your portfolio, as well as your responsibility. Fiduciary financial advisors are legally required to work in the best interests of the client. A red flag that your advisor is not an agent when they work through the Commission. If they do, they can try to speed up the sale of products or investments that are not useful to you. For this reason, you should hire an advisor who is an agent, so that you don`t have to worry about alternative reasons. Whether they are in trust may also affect a discretionary or non-discretionary agreement. Using Subadvisor (s): In accordance with the client`s investment profile, BrightPlan may, at its own discretion and at its own expense, hire one or more sub-advisors (a ”subadvisor”) to manage all or part of the customer account.

There is no additional charge to the customer if BrightPlan hires a sub-advisor beyond the fees described in the ”Fees” section. Each sub-advisor will rely on customer information to provide customer advice on the client`s account, subject to BrightPlan`s privacy policy, a copy of which is available on the site. The client agrees that BrightPlan can refer the client to an affiliated sub-advisor if BrightPlan believes that the client would benefit from consultation with such a sub-advisor or would be better served by having a more personalized investment plan with traditional financial advice. Your financial advisor contract must also state that all your information is confidential. Some confidentiality agreements provide for a blanket ban on the exchange of confidential information. However, other agreements may, in certain situations, have allowed the disclosure of information. Make sure your contract has privacy rules that make you feel comfortable. An investment advisory agreement can be helpful so you fully understand what your financial advisor will do for you. But don`t ignore it and sign without reading it first. This may take time, but it can help you avoid headaches on the line. And if there`s something in the agreement that you don`t understand, don`t hesitate to ask your advisor for a detailed explanation.