This document is an Investment Advisory Agreement that appoints the investment advisor as attorney-in-fact to the trustee. It details the duties and obligations of the investment advisor and provides indemnity to the advisor. It also spells out the duration and termination of the agreement and the governing law of the agreement.
North Carolina Investment Advisory Agreement is a legally binding contract between an investment advisor and a client in the state of North Carolina. This agreement outlines the terms and conditions under which the investment advisor provides investment-related services to the client. It is an essential document that ensures both parties are aware of their rights and responsibilities throughout the advisory relationship. The North Carolina Investment Advisory Agreement includes crucial details such as the names and contact information of both parties, the scope of services to be provided, the advisor's compensation structure, any limitations or restrictions, and the duration of the agreement. It also covers important clauses related to confidentiality, termination, dispute resolution, and disclosures. There are several types of Investment Advisory Agreements in North Carolina, depending on the specific services being offered or the nature of the client-advisor relationship: 1. General Investment Advisory Agreement: This is the most common type and covers a broad range of investment advisory services. It typically includes investment recommendations, portfolio management, financial planning, and asset allocation. 2. Limited Investment Advisory Agreement: This type of agreement restricts the scope of services provided by the advisor. It may be suitable for clients seeking specific investment advice or a limited engagement for a particular investment project. 3. Wrap Fee Investment Advisory Agreement: This type of agreement combines advisory services with the execution of trades and transaction costs. The advisor charges a single bundled fee, typically a percentage of assets under management, which covers both the advisory services and trading expenses. 4. Discretionary Investment Advisory Agreement: This agreement grants the advisor full authority to make investment decisions and execute trades without obtaining prior consent from the client. The client sets suitable investment objectives and risk tolerances, and the advisor manages the portfolio accordingly. 5. Non-Discretionary Investment Advisory Agreement: In this type of agreement, the advisor provides investment advice and recommendations, but the client retains the final decision-making authority. The client approves all investment transactions before they are executed. North Carolina Investment Advisory Agreements must comply with federal and state regulations, including the guidelines set by the U.S. Securities and Exchange Commission (SEC) and the North Carolina Secretary of State. It is crucial for both parties to thoroughly review and understand the terms and conditions outlined in the agreement before signing it, as it establishes the foundation for a transparent and mutually beneficial advisory relationship.
