As an investment advisor, it is important to have a client agreement in place to protect both you and your clients. A client agreement outlines the key terms and conditions of your investment advisory relationship, including the services you will provide, how you will be compensated, and what your responsibilities are.

Here are some key elements that should be included in your investment advisor client agreement:


Your client agreement should specify the types of advisory services you will provide to your clients. This might include financial planning, investment management, or other types of financial advice. Be specific about the scope of your services and what you will and will not do for your clients.


Your client agreement should also outline how you will be compensated for your services. This might include a fee-based structure, a commission-based structure, or a combination of both. Be transparent about your fees and how they are calculated.


Your client agreement should also outline your responsibilities as an investment advisor. This might include providing regular updates to your clients on their investments, responding to client inquiries in a timely manner, and maintaining the confidentiality of client information. Be clear about your obligations and what your clients can expect from you.


Your client agreement should also include a termination clause that outlines the circumstances under which either party can terminate the agreement. This might include a notice period or specific conditions that must be met before the agreement can be terminated.

Risk Disclosure

Finally, your client agreement should include a risk disclosure statement that outlines the risks associated with investing. This might include a disclaimer that past performance is not indicative of future results, as well as a warning that investments can fluctuate in value and may result in a loss of principal.

In conclusion, having a comprehensive investment advisor client agreement is essential for building trust with your clients and protecting both their interests and your own. By clearly outlining the services, compensation, responsibilities, termination, and risk associated with your advisory relationship, you can create a solid foundation for a successful long-term partnership with your clients.