A Wealth Advisory Agreement: What You Need to Know
A wealth advisory agreement is a legal document that outlines the relationship between a client and their wealth advisor. It sets out the scope of services to be provided, the fees to be charged, and the obligations of both parties. This article will provide an overview of wealth advisory agreements and what you need to know about them.
What is a Wealth Advisory Agreement?
A wealth advisory agreement is a contract between a client and a wealth advisor. The agreement sets out the terms of the relationship between the two parties, including the services to be provided and the fees to be charged. It is a legally binding document that protects the interests of both parties.
What Services are Included in a Wealth Advisory Agreement?
The services included in a wealth advisory agreement can vary depending on the needs of the client. Typically, wealth advisory services include investment management, financial planning, tax planning, and estate planning. The agreement will outline the specific services to be provided and the level of service expected.
What Fees are Charged in a Wealth Advisory Agreement?
The fees charged in a wealth advisory agreement can also vary. Some advisors charge a flat fee, while others charge a percentage of the assets under management. It is important to understand the fee structure and any additional charges that may be incurred, such as transaction fees or custody fees.
What are the Responsibilities of the Client?
The client has certain responsibilities under a wealth advisory agreement. These may include providing accurate financial information, notifying the advisor of any changes in their financial situation, and promptly paying any fees owed. The client should also communicate openly with the advisor and raise any concerns or questions they may have.
What are the Responsibilities of the Wealth Advisor?
The wealth advisor also has responsibilities under the agreement. These include providing the agreed-upon services to the client, acting in the client`s best interests, and keeping the client informed of any material changes to their portfolio or financial situation. The advisor should also disclose any conflicts of interest and act with integrity at all times.
Conclusion
A wealth advisory agreement is an important document that defines the relationship between a client and a wealth advisor. It sets out the services to be provided, the fees to be charged, and the responsibilities of both parties. As a client, it is important to carefully review and understand the agreement before signing. If you have any questions or concerns, don`t hesitate to ask your advisor.