Investment Advisor Agreement Template

• Category: Contracts - Investments
• State: Multi-State
• Control #: US-0820BG
• Format: Word; Rich Text

Description

An investment advisor is defined by the Investment Advisers Act of 1940, as any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or via written publications. An investment advisor agreement is a formal arrangement between a registered investment adviser and an investor stipulating the terms under which the adviser is authorized to act on behalf of the investor to manage the assets listed in the agreement. The agreement establishes the extent to which the adviser may act in a discretionary capacity to make investment decisions based on a prescribed strategy. An Investment Advisory Agreement is a legally binding contract between an individual or organization and an investment advisor or financial planner. The agreement outlines the services that the advisor will provide and the fees they will charge for those services. It also defines the scope of the advisor's responsibilities, the terms of the agreement, and the termination process. The agreement is often used to ensure that the advisor follows all applicable laws and regulations when managing the investor's portfolio. The most common types of Investment Advisory Agreements include: • Fee-Only Investment Advisor Agreement: This type of agreement outlines the fees that the advisor will charge for their services; typically, these fees are based on a percentage of the assets managed. • Fee-Based Investment Advisor Agreement: This type of agreement allows the advisor to charge fees and receive commissions for their services. • Retainer-Based Investment Advisor Agreement: This type of agreement requires the investor to pay a retainer fee for the advisor's services. The advisor is then paid a percentage of the assets managed. • Hourly-Based Investment Advisor Agreement: This type of agreement requires the investor to pay an hourly rate for the advisor's services.

An Investment Advisory Agreement is a legally binding contract between an individual or organization and an investment advisor or financial planner. The agreement outlines the services that the advisor will provide and the fees they will charge for those services. It also defines the scope of the advisor's responsibilities, the terms of the agreement, and the termination process. The agreement is often used to ensure that the advisor follows all applicable laws and regulations when managing the investor's portfolio. The most common types of Investment Advisory Agreements include: • Fee-Only Investment Advisor Agreement: This type of agreement outlines the fees that the advisor will charge for their services; typically, these fees are based on a percentage of the assets managed. • Fee-Based Investment Advisor Agreement: This type of agreement allows the advisor to charge fees and receive commissions for their services. • Retainer-Based Investment Advisor Agreement: This type of agreement requires the investor to pay a retainer fee for the advisor's services. The advisor is then paid a percentage of the assets managed. • Hourly-Based Investment Advisor Agreement: This type of agreement requires the investor to pay an hourly rate for the advisor's services.