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.
Pennsylvania Investment Advisory Agreement is a legally binding contract that establishes the terms and conditions between an investment advisor and their client(s) in the state of Pennsylvania. This agreement governs the relationship and services provided by the investment advisor, ensuring both parties are aware of their rights, obligations, and responsibilities. The Pennsylvania Investment Advisory Agreement outlines the scope of services provided by the investment advisor, such as portfolio management, financial planning, asset allocation, and investment advice. It details the fee structure for those services, including any management fees, performance-based fees, or other charges the client may incur. The agreement also specifies the duration of the contract, rights to terminate, and any notice requirements. Pennsylvania recognizes several types of investment advisory agreements, each with unique features and purposes: 1. Limited Power of Attorney (LPO): Some investment advisory agreements grant the advisor a limited power of attorney, allowing them to make investment decisions on behalf of the client. This type of agreement gives the advisor more control over managing the client's assets according to the agreed-upon investment strategy. 2. Discretionary vs. Non-Discretionary: Investment advisors may offer both discretionary and non-discretionary services. A discretionary agreement allows the advisor to make investment decisions without requiring explicit approval from the client for each transaction. In contrast, a non-discretionary agreement involves the advisor providing recommendations, but the final decision rests with the client. 3. Fee-Only vs. Fee-Based: Investment advisory agreements can be categorized as fee-only or fee-based. Fee-only agreements mean that the advisor only receives compensation directly from the client and avoids any commission-based compensation or third-party payments. Fee-based agreements may involve additional commissions or compensation received from third parties, potentially creating a conflict of interest. 4. Wrap Fee Agreements: Wrap fee agreements bundle various services, such as investment management, brokerage, and administrative fees, into a single annual fee. This type of agreement simplifies the fee structure for clients and helps ensure transparency with regard to costs. It is crucial for both the investment advisor and client to carefully review and understand all the terms and conditions specified in the Pennsylvania Investment Advisory Agreement before signing. Seeking legal and financial advice is recommended to ensure compliance with local regulations and to protect the rights and interests of both parties involved.
