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Client Engagement Letter for Funds, Trusts, and Financial Vehicles

Funds, Trusts, and Other Financial Vehicles · NAICS 525 · Client Engagement Letter

This client engagement letter is tailored for funds, trusts, and other financial vehicles under NAICS 525. It formalizes the relationship between your firm and a client entity, covering critical aspects such as scope of services, fees, fiduciary duties, and compliance obligations. Unlike generic templates, this letter addresses industry-specific nuances like ERISA fiduciary status, SEC regulatory compliance, and fund administration terms. Use it to establish clear expectations, protect your firm, and build trust with institutional clients. The draft is designed to be a starting point, not a substitute for legal counsel.

When you need this document

When onboarding a new investment fund, trust, or pension fund client.
When offering advisory, administration, or trustee services to a financial vehicle.
When updating terms of an existing engagement due to regulatory changes.
When formalizing a fee arrangement with a fund or trust entity.
When engaging with a client that requires ERISA fiduciary acknowledgment.

What the generated draft includes

Parties and entity types (trust, fund, etc.)
Detailed scope of services with regulatory references
Fee structure and payment terms
Term and termination provisions
Fiduciary acknowledgment clause (if applicable)
Compliance with AML/KYC and data privacy laws
Limitation of liability and indemnification
Governing law and dispute resolution

Frequently asked questions

Is this engagement letter legally binding?

Yes, once signed by both parties, it becomes a binding contract. However, it is a draft and should be reviewed by legal counsel to ensure it meets all regulatory requirements for your specific situation.

Can I use this for ERISA plans?

Yes, the letter includes a fiduciary acknowledgment clause that can be customized. However, ERISA has specific requirements, so you should consult with an ERISA attorney to ensure full compliance.

What if I need to include special terms?

The form includes a field for special terms. You can add any additional provisions, but we recommend having them reviewed by a lawyer to avoid conflicts with standard clauses.

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.

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