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Investment Advisory Agreement for Finance & Insurance Firms

Finance and Insurance · NAICS 52 · Investment Advisory Agreement

In the finance and insurance industry, an investment advisory agreement is essential for establishing a professional relationship between an adviser and a client. This agreement outlines the scope of services, fee structure, and fiduciary responsibilities, ensuring both parties are aligned. Whether you are a registered investment adviser (RIA), a financial planner, or an insurance professional offering advisory services, this contract helps protect your practice and comply with regulations like the Investment Advisers Act of 1940. Use this template to create a clear, professional agreement that sets expectations and mitigates disputes.

When you need this document

When onboarding a new client for portfolio management or financial planning services.
When an insurance professional expands into fee-based advisory services.
When updating existing client agreements to reflect changes in fees or services.
When a client requests a written explanation of the advisory relationship and fees.
When forming a new RIA or adding advisory services to an existing financial services firm.

What the generated draft includes

Identification of adviser and client with legal names and addresses.
Detailed scope of advisory services and any limitations.
Fee schedule with basis, amount, and billing frequency.
Fiduciary duty and conflict of interest disclosure clause.
Termination provisions with notice period and fee handling.
Regulatory acknowledgments (Form ADV, etc.) and governing law.

Frequently asked questions

Is an investment advisory agreement legally required?

While not always legally required, it is a best practice and often mandated by state or SEC regulations. It ensures clarity on services, fees, and fiduciary duties, protecting both the adviser and the client.

Can I use this agreement for insurance-linked advisory services?

Yes, but ensure you clearly define the advisory services separate from insurance product sales. The agreement should not cover insurance transactions, which are subject to different regulations.

Does this agreement guarantee investment performance?

No, the template explicitly disclaims any guarantee of performance. Including such a guarantee would violate securities laws and could lead to regulatory action.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.