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Financial Management Agreement Template

Here's what you'll find in the Financial Management Contract Template:

  • A contract template for financial management agreements
  • Tips for those wishing to hire a consultant to manage their money or if a financial advisor is being hired by a business or individual to provide financial services
  • subcontractors on things to avoid, key items to pay attention to, and general resources which may be helpful
  • Advice on getting contracts signed quickly, digitally, and legally
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Financial Management Agreement Template

A financial management agreement is a legally binding contract between two or more parties whereby the client retains the services of a financial advisor.

  • This financial management agreement template is a universal, comprehensive contract to help you draft your own tailored agreement.
  • A financial consultant helps individuals and businesses manage their finances and craft investment strategies.
  • A financial management agreement is necessary when a client wishes to hire a consultant to manage their money or if a financial advisor is being hired by a business or individual to provide financial services.
  • A financial management contract is important because it offers protection to both parties in the event of a dispute.

What is a Financial Management Agreement? 

Financial advisors wear many hats. They are usually retained to provide financial advice and implement financial management techniques. However, financial advisors can also craft a customized plan to help an individual or company reach its financial goals.

Financial advisors are generally retained to consult and advise in the following areas:

  • Debt Management
  • Long-Term Care and Health Planning
  • Estate Planning
  • Budgeting
  • Retirement Planning and Inheritance
  • Tax Planning
  • Investment Objectives and Strategies

Other names for a financial management agreement include:

  • Financial Consulting Agreement
  • Financial Services Agreement
  • Service Provider Agreement
  • Investment Management Agreement

A financial management agreement outlines the relationship between the financial advisor and their client. A written contract ensures that all parties are on the same page concerning the services, fiscal matters, and service fees.

Elements of a Financial Management Agreement

The goal of the financial management agreement is to ensure it is enforceable. Here are a few key components of a financial management agreement:

  • Scope of Services – The scope of services component of the financial advisor contract is one of the most essential elements. The scope of services details exactly what services the financial advisor will be responsible for providing. The services depend on the client’s specific needs. The financial advisor could offer their services to individuals or companies. The services could range to tax planning, investment planning, estate planning, and review of financial position. Nonetheless, all services the parties agree to should be detailed in the final contract.
  • Management Fee and Compensation – All details of how the financial advisor is to be paid should be identified in the agreement. Each contract will vary, so the fee schedule may be different depending on the services offered by the financial advisor and acceptance by the client.
  • Term – The duration of the agreement and termination procedures should be included in the contract so that both parties are aware of the conditions and obligations.
  • Confidentiality – Sometimes, the financial advisor will need access to the client’s confidential information so they can successfully perform their services. The parties should agree to keep the protected information confidential.
  • Dispute Resolution – Dispute resolution provides the parties with an opportunity to resolve any dispute through good-faith negotiations before commencing legal action.

Common Mistakes Found in Financial Management Agreements 

Contracts can be confusing, and it is always a good idea to seek legal advice before finalizing your financial management agreement. The financial services the parties agree to should be as detailed as possible. If it is not listed in the contract, it may not be an enforceable provision. Even if the parties orally agree to a certain aspect of an agreement, it should always be memorialized in writing and signed off on by all parties listed on the contract.

Another common mistake is simply not having a contract. This usually proves to be a detrimental mistake, and the parties could end up facing costly litigation. A written agreement provides all of the terms and services agreed to by the parties.

How to get your Financial Management Agreement Signed

Electronic signatures are not only easy but legally binding. E-signatures offer assurance that all parties to the contract have received, reviewed, and have properly signed the agreement. After all, the signatures are the critical element to the contract that proves the parties reviewed and agreed to the terms listed. Without any signatures at all, the entire agreement may not be considered enforceable. ApproveMe.com’s software helps get the signatures your contracts need so you can get to work.

Helpful Resources for Financial Advisors 

Financial advisors provide a plethora of services. It is a fast-paced and everchanging industry. It is important for financial consultants to stay on top of financial trends to grow their business while effectively helping their clients. Here are some online resources that could help you excel as a financial advisor:

 

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FINANCIAL MANAGEMENT CONTRACT

This Financial Management Contract (“Agreement”) dated on this _____ day of_______, 20__ (the “Effective Date”) is made between __________________ (the “Client”) and________________(the “Financial Advisor”), for the purpose of setting forth the exclusive terms and conditions by which the Client desires to acquire the financial consultation and management services from the Financial Advisor.

In consideration of the mutual obligations specified in this Agreement, the parties, intending to be legally bound hereby, agree to the following:

Scope of Services. Client retains the above Financial Advisor and the Financial Advisor agrees to perform for the Client, the financial services set forth in Exhibit A to this Agreement (the “Services”). Any Service outside of the scope as defined in Exhibit A to this Agreement will require a new Agreement for other services agreed to by the Parties. At a minimum the Financial Advisor will understand the Client’s financial situation prior to advising the Client on making investments.

Consideration / Compensation. In exchange for the full, prompt, and satisfactory performance of all Services to be rendered to the Client (as determined by the Client), the Financial Advisor shall be compensated as follows:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

The Financial Advisor will invoice the Client on the _____ day of each month. The invoice will include any and all services performed under this Agreement as well as any pre-approved expenses.

 

Payment will be due within _____ days of the invoice date. A late charge of $_______ per month will be added to any invoice not paid on time.

 

Payments must be made to the Financial Advisor by credit card, money order, check, or any other approved method of payment accepted by the Financial Advisor.

 

Payments must be mailed to:

________________________________

________________________________

________________________________

________________________________

 

Expenses. From time to time throughout the duration of this Financial Management Agreement, the Financial Advisor may incur certain expenses that are not included as part of the Fee for our Services to this Agreement.

 

The Financial Advisor agrees to keep an exact record of any and all expenses acquired while performing the Services. The Financial Advisor will submit an invoice itemizing each expense, along with proof of purchase and receipt, every ______ days upon completion of such Services.

 

If any one expense if over $_____, the Financial Advisor agrees to obtain the Client’s written consent before making the purchase.

 

Invoice Disputes. The Client shall notify the Financial Advisor in writing of any dispute with an invoice along with any substantiating documentation or a reasonably detailed description of the dispute within _____ Business Days from the date of the Client’s receipt of such invoice subject to dispute.

 

Client will be deemed to have accepted all invoices for which the Financial Advisor does not receive timely notification of a dispute and shall pay all undisputed amounts due under such invoices within the period set forth in this Agreement. The Parties shall seek to resolve all such disputes expeditiously and in good faith.

 

Term and Termination. This Financial Management Agreement shall be effective on the date hereof and shall continue for a period of _______ ([month[s]/year[s]) or until the expressly agree upon date of the completion of the Services, unless it is earlier terminated in accordance with the terms of this Agreement (the “Term”).

 

If either Party subject to his agreement fails to follow through with their obligations under this Financial Management Agreement, the non-breaching Party can terminate this Agreement by providing ____ day written notice to the breaching Party.

 

The Client understands that the Financial Advisor may terminate this Agreement at any time if the Client fails to pay for the Services provided under this Agreement or if the Client breaches any other material provision listed in this Financial Management Agreement in the manner as defined above. Client agrees to pay any outstanding balances within _____ days of termination.

 

Supplies and Equipment. The Financial Advisor, at their own expense, shall furnish their own supplies and equipment necessary to deliver and complete the Services as defined under this Agreement unless otherwise agreed upon by the parties. Should the Client not furnish the agreed upon supplies, the Client understands they will be responsible for reimbursing the Financial Advisor for all expenses incurred.

 

Independent Contractor. Client and Financial Advisor expressly agree and understand that the above-listed Financial Advisor is an independent contractor hired by the Client and nothing in this Agreement shall be construed in any way or manner, to create between them a relationship of employer and employee, principal and agent, partners or any other relationship other than that of independent parties contracting with each other solely for the purpose of carrying out the provisions of the Agreement.

 

Accordingly, the Financial Advisor acknowledges that neither the Financial Advisor or the Financial Advisor’s employees are not eligible for any benefits, including, but not limited to, health insurance, retirement plans or stock option plans. The Financial Advisor is not the agent of Client or its Company and is not authorized and shall not have the power or authority to bind Client or its Company or incur any liability or obligation, or act on behalf of Client or its Company. At no time shall the Financial Advisor represent that it is an agent of the Client or its Company, or that any of the views, advice, statements and/or information that may be provided while performing the Services are those for the Client.

 

The Financial Advisor is not entitled to receive any other compensation or any benefits from the Client. Except as otherwise required by law, the Client shall not withhold any sums or payments made to the Financial Advisor for social security or other federal, state, or local tax liabilities or contributions, and all withholdings, liabilities, and contributions shall be solely the Financial Advisor’s responsibility. The Financial Advisor further understands and agrees that the Services are not covered under the unemployment compensation laws and are not intended to be covered by workers’ compensation laws.

 

The Financial Advisor is solely responsible for directing and controlling the performance of the Services, including the time, place and manner in which the Services are performed. The Financial Advisor shall use its best efforts, energy and skill in its own name and in such manner as it sees fit.

 

Confidentiality. Throughout the duration of this Agreement, it may be necessary for the Financial Advisor to have access to the Client’s confidential and protected information for the sole purpose of performing the Services subject to this Agreement.

 

The Financial Advisor is not permitted to share or disclose such confidential information whatsoever, unless mandated by law, without written permission from the Client. The Financial Advisor’s obligation of confidentiality will survive the termination of this Financial Management Agreement and stay in place indefinitely.

 

Upon the termination of this Agreement, the Financial Advisor agrees to return to the Client any and all Confidential Information that is the property of the Client.

 

Return of Property. The Financial Advisor shall promptly return to the Client all copies, whether in written, electronic, or other form or media, of the Client’s Confidential Information, or destroy all such copies and certify in writing to the Client that such Confidential Information has been destroyed. In addition, the Financial Advisor shall also destroy all copies of any Notes created by the Financial Advisor or its authorized Representatives and certify in writing to the Client that such copies have been destroyed.

 

Intellectual Property. All Intellectual Property and related materials, including but not limited to, moral rights, goodwill, trade secrets, applications for registrations or relevant registration, rights to any trademark, trade tress, patent, copyright, trade name, and industrial design (“Intellectual Property”) that is produced or developed under this Financial Management Agreement. The Financial Advisor understands that the aforementioned is a “work for hire” and shall be the sole property of the Client. The Client’s use of the Intellectual Property shall not be restricted in any manner.

 

The Financial Advisor may not use the Client’s Intellectual Property for any purpose other than contracted for in this Financial Management Agreement unless the Financial Advisor has written consent from the Client. The Financial Advisor shall be responsible for any damages resulting from any unauthorized use of the Client’s intellectual property.

 

Indemnification and Release. The Financial Advisor agrees to take all necessary precautions to prevent injury to any persons or damage to property during the term of this Agreement, and shall indemnify, defend and hold harmless the Client, its officers, directors, shareholders, employees, representatives and/or agents from any claim, liability, loss, cost, damage, judgment, settlement or expense (including attorney’s fees) resulting from or arising in any way out of injury (including death) to any person or damage to property arising in any way out of any act, error, omission or negligence on the part of the Financial Advisor or any of the Financial Advisor’s employees in the performance or failure to fulfill any Services or obligations under this Agreement.

No Exclusivity. The Parties subject to this Agreement understand and acknowledge that this Agreement is not exclusive. Each Party respectively agree that they are free to enter into other similar Agreements with other parties.

Warranty. The Financial Advisor shall provide its services and meet its obligations set forth in this Agreement in a timely and satisfactory workmanlike manner, using its knowledge and recommendations for performing its services which generally meets standards in the Financial Advisor’s region and community, and agrees to provide a standard of care, equal or superior to care used by other professionals in the same profession.

The Financial Advisor shall perform the services in compliance with the terms and conditions of the Agreement.

Notices. All notices, requests, consents, claims, demands, waivers, and other communications hereunder (“Notice”) shall be in writing and addressed to the parties at the addresses set forth on the signature page of this Agreement (or to such other address that may be designated by the receiving party from time to time in accordance with this section). All Notices shall be delivered by personal delivery, nationally recognized overnight courier (with all fees pre-paid), facsimile, or email (with confirmation of transmission), or certified or registered mail (in each case, return receipt requested, postage prepaid).

Dispute Resolution. Parties to this Agreement shall first attempt to settle any dispute through good-faith negotiation. If the dispute cannot be settled between the parties via negotiation, either party may initiate mediation or binding arbitration in the State of ________________.

If the parties do not wish to mediate or arbitrate the dispute and litigation is necessary, this Agreement will be interpreted based on the laws of the State of _________________, without regard to the conflict of law provisions of such state. The Parties agree the dispute will be resolved in a court of competent jurisdiction in the State of ______________________.

Governing Law. This Financial Management Agreement shall be governed in all respects by the laws of the State of ___________________ without regard to the conflict of law provisions of such state. This Agreement shall be binding upon the successors and assigns of the respective parties.

Force Majeure. The Financial Advisor and any of its employees or agents shall not be in breach of this Financial Management Agreement for any delay or failure in performance caused by reasons out of its reasonable control. This includes, but is not limited to, acts of God or a public enemy; natural calamities; failure of a third party to perform; changes in the laws or regulations; actions of any civil, military or regulatory authority; power outage or other disruptions of communication methods or any other cause which would be out of the reasonable control of the Financial Advisor.

Legal Fees. Should a dispute between the named Parties arise lead to legal action, the prevailing Party shall be entitled to any reasonable legal fees, including, but not limited to attorneys’ fees.

No Assignment. This Agreement shall inure to and be binding upon the undersigned and their respective heirs, representatives, successors and permitted assigns. This Agreement may not be assigned by either party without the prior written consent of the other party.

Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile. email, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

Electronic Signatures. This Agreement and related documents entered into in connection with this Agreement are signed when a party’s signature is delivered electronically, and these signatures must be treated in all respects as having the same force and effect as original signatures.

Severability. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.

Captions for Convenience. All captions herein are for convenience or reference only and do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any of the provisions hereof.

No Waiver. No waiver of or failure to act upon any of the provisions of this Agreement or any right or remedy arising under this Agreement shall be deemed or shall constitute a waiver of any other provisions, rights or remedies (whether similar or dissimilar).

Amendment. This Agreement may be amended only by a writing signed by all of the Parties hereto.

Entire Agreement. This Agreement constitutes the sole and entire agreement of the Parties regarding the subject matter contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, regarding such subject matter. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each Party hereto.

 

[Signatures on Following Page]

 

                                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the undersigned have executed this Financial Management Agreement effective as of the ____________ day of ________________, 20__ (the “Effective Date”).

 

Dated: _____________________________                                  Dated: _______________________________

 

________________________________________                      _______________________________________

Financial Advisor’s Signature                                                          Client’s Signature

 

________________________________________                      _______________________________________

Financial Advisor’s Printed Name or Entity                                  Client’s Printed Name or Entity

 

 

Financial Advisor’s Contact Information:                                 Client’s Contact Information:

 

Address: ______________________________                            Address: _____________________________

 

Phone Number: _________________________                           Phone Number: _________________________

 

Email Address: _________________________                           Email Address: _________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT A

SERVICE(S)

The Financial Advisor agrees to provide the following service(s):
_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

The Financial Advisor is entitled to reimbursement of the following expenses incurred while performing such Service(s):

__________________________________________________________________________________________________________________________________________________________________________*The Financial Advisor agrees that any expense not listed must be pre-approved by the Client. The Financial Advisor agrees to provide any receipts of any other related document to such expenses.

 

Other:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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