Financial Planning/Consulting Services Agreement

Transcription

1 Client s Name: Joint Client s Name: Investment Advisor Representative: Date of this Agreeement: Client and Joint Client (collectively Client ), Transamerica Financial Advisors, Inc. ( TFA ), an investment advisor registered with the Securities and Exchange Commission, and the Investment Advisor Representative identified above ( Advisor ) who is associated with TFA, agree as follows: IMPORTANT: Please check the appropriate section for the services selected by the Client Financial Planning Services Client acknowledges that the value and usefulness of the financial planning services provided by Advisor depends on the information Client provides and Client s active participation in the development and identification of Client s financial planning objectives. In this regard, Client will provide Advisor with copies, as applicable, of insurance policies, wills, trusts, business arrangements, tax returns and other documents that may be reasonably requested by Advisor in order to complete the evaluation and offer financial planning advice to Client. Advisor will provide the following services, as applicable, based on the information furnished by Client:: A review of Client s present financial position, including the following as appropriate: net worth statement, budget/cash flow analysis, risk assessment and income tax assessment. A review of Client s financial goals, objectives, risk tolerance, time horizon and expectations. A written evaluation and analysis of the information Client provided and recommendations for Client s personalized financial program, including the items Client has checked below. Client understands that only those items that have been checked will be covered in the written evaluation and recommendations. General Needs Risk Management Needs Special Needs Educational needs Survivor income needs Business planning needs Retirement needs Disability income needs Charitable planning Estate planning needs Long term care needs Special family needs (divorce, adoption, adult dependent) Investment planning, portfolio Other insurance needs Allocation of Qualified Plans review or other accumulation needs (excluding health, property/casualty, other liability) Other services: Consultation regarding the potential implementation of Advisor s recommendations will be allocated for a period of up to three months from the date the presentation and written evaluation and analysis took place. However, the total consultation period may not extend beyond six months from the date of this Agreement. In the event Client, Advisor and TFA agree to extend this Agreement beyond six months, Advisor will provide continued consultation taking into account Client s changing circumstances to the extent Client keeps Advisor informed of these changes and provides Advisor with updates to the documentation Client previously provided to TFA. 1 of 6

2 COMPENSATION Client will compensate TFA and Advisor for all services furnished under this Agreement by the payment of fees in accordance with these provisions. It is agreed that the fees are in no way based on the capital gains or appreciation of Client s funds. Advisor may choose to waive fee under his/her discretion. Initial Plan Consultation For financial planning services based on specific needs checked above (enter N/A if fee waived): Hourly rate of $, plus out-of pocket expenses (i.e., long distance calls, overnight mailings, travel expenses), with an estimate of hours to complete the financial plan, or flat fee of $. An advance (maximum $1,200) of $ is due upon requesting the financial planning services, which will be applied to the total, and the balance will be due upon presentation of the plan. Ongoing Review of Existing Plan For an ongoing review and update of Client s previously provided financial plan (enter N/A if fee waived): Ongoing review and update fee $ or hourly rate of $, plus out-of-pocket expenses (i.e., long distance calls, overnight mailings, travel expenses), with an estimate of hours to complete the review and update. An advance of $ (may not exceed $500) is due upon requesting the review and update, which will be applied to the total, and the balance will be due upon presentation of the review and update. Fees will be determined by TFA and Advisor based on a preliminary assessment of the services agreed upon and the complexity of Client s financial circumstances. If Client requests an ongoing review and update of Client s plan, the fee will be based on the complexity of each year s review. The fee will be due and payable at the completion of the review and update, and will be in accordance with the above Fee Schedule. CONSULTING SERVICES Advisor agrees to provide consultation on various financial advisory topics to Client that will address Client s specific financial needs and objectives, analyze Client s current financial situation and investment goals, and present strategies and recommendations to help Client attain Client s stated investment goals. Advisor shall discuss with Client any one or more of the following planning topics, for which Advisor will charge an hourly fee, a flat fee, or a percentage of assets under management fee, as agreed upon by Client and Advisor: Investment Planning Insurance Planning Retirement Planning Estate Planning Business Ownership and Succession Planning Advisor may use a variety of tools to provide the agreed upon consulting services. Advisor shall not be obligated to make any recommendations, give any advice or design any program to implement Client s financial goals if such goals are, in Advisor s sole discretion, impracticable or unattainable. Also, Advisor shall not be obligated to make any recommendation or give any advice regarding any investment product if, in Advisor s sole discretion, such investment product would be unsuitable for Client. Advisor shall not be responsible for the accuracy of information obtained from other sources. Advisor cannot offer consulting services to AEGON 401(k) plan participants or with participants of plans serviced by Transamerica Retirement Solutions, Corp. Advisor may use financial analysis tools to assist in providing consulting services to Client. Such financial analysis tools may include, but are not limited to, asset allocation reports, investment holdings reports, client net worth reports, hypothetical projected performance and cash flow analysis, or other similar financial analysis tools. 2 of 6

3 COMPENSATION TFA will be compensated for the consulting services as specified below. TFA will pay Advisor a portion of the fees received by TFA from Client. TFA s fee is calculated as: [CHECK ONE]: An hourly fee, subject to a $ minimum fee, as described in the Consulting Services Invoice. Advisor s minimum and maximum hourly rates are $50.00 and $250.00, respectively. Advisor s hourly rates may vary depending on, among other things, the complexity of Client s circumstances and the services to be rendered. $ hourly rate agreed upon. A flat fee for consulting services rendered. Advisor will not be compensated on the basis of any realized or unrealized capital gains, or on the basis of any capital appreciation in any mutual fund or other security that Advisor may recommend to Client pursuant to this Agreement. $ flat fee agreed upon. A percentage of assets under management fee. Advisor will calculate this fee based solely on the value of the assets for which the consulting services are being provided. The maximum fee is 2.5%, however, 1.8% is the maximum fee for asset allocation advice provided on variable annuities or variable universal life policies. Products sold through TFA are not eligible for inclusion in the total assets under management for billing purposes. % agreed upon fee. Fee waived. Advisor chooses to charge no fees when providing consulting services. OTHER TERMS AND CONDITIONS 1. DISCLOSURE OF INTEREST AND CAPACITY Following Advisor s consultation with Client, Advisor may recommend that Client purchase or sell securities or other investment products, and/or enter into other financial transactions. Neither Advisor, nor any officer, employee, registered representative, or other agent of TFA or of any affiliate of TFA, guarantees the performance of any security or other investment product, or guarantees the availability of any tax benefit, with regard to any recommendation that Advisor may make to Client. As to any security or other investment product that Advisor may recommend to Client, Advisor acts only in the capacity of an agent and not as a principal. Client will not be obligated, under this Agreement or otherwise, to follow any of Advisor s recommendations or execute any securities transactions through Advisor. However, Client may, if Client so chooses, implement Advisor s recommendations for the purchase and/or sale of securities through Advisor. Client understands and acknowledges that Advisor is a TFA registered representative and places orders for securities transactions through TFA for which Advisor receives commission income and other benefits. Client may use Advisor s services to effect purchases of securities through TFA, or Client may purchase securities through any other broker-dealer. Client retains all rights over any account opened in connection with the financial planning/consulting services provided pursuant to this agreement, including, but not limited to, the responsibility to vote any and all applicable proxies. If Client chooses to execute any of the securities transactions recommended by Advisor and place such trades through Advisor, Client understands and acknowledges that, in addition to the compensation provided for in the respective Compensation section of this agreement, TFA and Advisor may receive additional compensation on commissionable transactions placed through TFA. Therefore, Client may pay transaction fees and/or commissions, which will be separate and distinct from the fee that Client will pay for Advisor s services hereunder. 2. RECOMMENDATIONS TFA and Advisor do not assume any obligation for the implementation of Client s financial plan/consulting recommendations other than as outlined in this Agreement. Client should consult with legal counsel or other professionals Client deems necessary in implementing recommendations contained in the financial plan or through consulting services provided. Implementation of any portion of the plan is entirely at Client s discretion. Client understands that some recommendations contained in the financial plan or obtained through consulting services are based in part on Client s tax status. Client also understands that neither TFA nor Advisor is in the business of rendering tax advice and TFA and Advisor cannot guarantee that Client will derive any tax benefit through the implementation of recommendations contained in the plan. Therefore, TFA and Advisor encourage Client to consult with his or her own tax advisor prior to implementing any investment recommendations. 3 of 6

4 Advisor, in the capacity of the Advisor s outside business activity, may be in the business of rendering tax advice and any tax advice offered by him or her regarding the investment recommendations contained in the financial plan or consulting arrangement is offered independently of TFA. This agreement will not provide TFA and Advisor discretionary authority regarding financial decisions. TFA and Advisor will not be responsible for the accuracy of information obtained from other sources. Client understands that TFA and Advisor provide similar services to other clients and receive fees for such services. The advice given and the actions taken with respect to such other clients may differ from advice given to Client. 3. POTENTIAL CONFLICTS OF INTEREST TFA is also registered as a broker-dealer with the Financial Industry Regulatory Authority (FINRA). Further, Advisor is also a registered representative of TFA. As a result, a potential conflict may arise between Client s interests and TFA s and Advisor s interest in implementing transactions through TFA. Client understands that Client is under no obligation to implement the financial plan or consulting services by executing transactions through TFA. If Client chooses in Client s sole discretion to effect transactions with TFA, TFA and Advisor may collect transaction fees or commissions separate from the financial planning/consulting fees charged under this Agreement. Client also understands that certain officers, employees and/or other affiliates of TFA maintain various business relationships through which they receive compensation aside from the fees outlined in this Agreement. In formulating the financial plan/consulting recommendations, Advisor will consider primarily the financial products offered through or approved by TFA. As a result, equity products recommended by Advisor in connection with Client s financial plan/consulting recommendations may only consist of financial products that have been approved by TFA. 4. RISK ACKNOWLEDGMENT Client recognizes that the financial plan/consulting services described in this Agreement involves Advisor s judgment and that his or her views regarding the economy and the securities markets, like all predictions of future events, cannot be guaranteed to be accurate. Client represents that no party to this Agreement has made any guarantee, either oral or written, that Client s investment objectives will be achieved. Client understands that the financial plan is designed as a long term investment program and that asset withdrawals may impair the achievement of Client s investment objectives. 5. ANTI-HEDGE CLAUSE STATEMENT The federal and state securities laws impose liabilities under certain circumstances on persons who act in good faith, therefore nothing in this agreement will constitute a waiver of any client s rights under common law or federal securities laws. 6. QUALIFIED PLANS (Only) In formulating the financial plan/consulting recommendations for Client s qualified plan assets, Advisor will consider the information Client provides Advisor concerning Client s assets and investments that are not part of the qualified plan. In formulating the financial plan/consulting recommendations for Client s assets that are not part of the qualified plan, Advisor will take into account Client s qualified plan assets. With respect to the qualified plan assets, Advisor will make recommendations only with respect to those financial products offered under Client s plan. Advisor will be compensated for his/her investment advice with respect to Client s qualified plan assets and, if applicable, for his/her investment advice with respect to Client s non-qualified plan assets. 7. PRIVACY TFA and Advisor agree that all of the personal information furnished by Client pursuant to this Agreement shall be kept in strict confidence and will not be disclosed to any other unrelated person without Client s prior consent, unless such disclosure is required by law. TFA s Notice of Privacy Policy is attached to this Agreement. 8. ASSIGNMENT This Agreement may not be assigned by any party without the prior consent (which consent may be provided via negative consent following full and fair disclosure of all material facts) of the other party. 9. TERMINATION Either party may terminate this Agreement at any time by giving a written notice of termination to the other party as provided in paragraph 15 of this Agreement. The termination will be effective upon receipt of the written notice by the other party ( Termination Date ). If the Client terminates the Financial Planning Services portion of this Agreement within five business days of its signing, the Client will receive a full refund of all fees. If this Agreement is terminated after five business days of its signing, any prepaid fees will be prorated and the unused portion will be returned to the Client. 4 of 6

5 10. SEVERABILITY If any provision of this Agreement shall be held to be, or shall be made, non-enforceable by any statute, rule, regulation, decision of any tribunal or otherwise, such provision shall be automatically reformed and construed so as to be valid, operative and enforceable to the maximum extent permitted by law or equity while most nearly preserving its original intent. The invalidity of any provision of this Agreement shall not render invalid the remainder of this Agreement and, to that extent, the invalid provision of this Agreement shall be deemed to be severable. 11. JOINT AND SEVERAL OBLIGATIONS In the event that two or more individuals execute this Agreement as Client, each such individual agrees to be jointly and severally bound by each obligation of Client provided for herein. 12. GOVERNING LAW This Agreement, and all of the rights and obligations of the parties hereto, shall be governed by and construed in accordance with the laws of the State of Florida without giving effect to any conflicts of law principles, to the extent that such state law is not preempted by the provisions of any law of the United States, including, without limitation, the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940 ( Advisers Act ) and the rules and regulations of the Securities and Exchange Commission thereunder. 13. ARBITRATION This agreement contains a pre-dispute arbitration clause. By signing an arbitration agreement the parties agree as follows: ALL PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIAL BY JURY, EXCEPT AS PROVIDED BY THE RULES OF THE ARBITRATION FORUM IN WHICH A CLAIM IS FILED. ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A PARTY S ABILITY TO HAVE A COURT REVERSE OR MODIFY AN ARBITRATION AWARD IS VERY LIMITED. THE ABILITY OF THE PARTIES TO OBTAIN DOCUMENTS, WITNESS STATEMENTS, AND OTHER DISCOVERY IS GEN- ERALLY MORE LIMITED IN ARBITRATION THAN IN COURT PROCEEDINGS. THE ARBITRATORS DO NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR AWARD. THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF INDIVIDUALS WHO WERE OR ARE AFFILI- ATED WITH THE SECURITIES INDUSTRY. CORPORATED INTO THIS AGREEMENT. THE RULES OF SOME ARBITRATION FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN ARBITRATION. IN SOME CASES, A CLAIM THAT IS INELI- GIBLE FOR ARBITRATION MAY BE BROUGHT IN COURT. THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS FILED, AND ANY AMENDMENTS THERETO, SHALL BE INCORPORATED INTO THIS AGREEMENT. No person shall bring a putative or certified class action to arbitration, nor seek to enforce any predispute arbitration agreement against any person who has initiated in court a putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; or (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this agreement except to the extent stated herein. In consideration of opening one or more advisory accounts for the undersigned, the undersigned agree(s) that any controversy between us arising out of or relating to my (our) account, transactions with or for me (us), or this agreement or the breach thereof shall be settled by arbitration in accordance with the rules, then established, of the Financial Industry Regulatory Authority (FINRA). Nothing in this agreement shall limit or contradict the rules of any self-regulatory organization nor limit the ability of any party to file any claim in arbitration nor limit the ability of an arbitration panel to make any award. 14. ENTIRE AGREEMENT This Agreement supersedes any and all prior agreements between the parties hereto with respect to the subject matter contained herein and constitutes the entire agreement between the parties. TFA has the right to amend this Agreement by modifying or changing the terms and conditions of this Agreement by mailing a written notice of the modification or change as provided in paragraph 15 of this Agreement. Such written notice shall include the effective date of such modification or change, which shall not be effective prior to 30 days from the date of such written notice. Client s use of the account after the effective date of the modification or change shall constitute Client s acknowledgement and agreement to the terms of such modification or change. 5 of 6

6 15. NOTICES Notices and reports provided for herein, in the case of TFA, shall be mailed to Transamerica Financial Advisors, Inc., Attention: Advisory Services, 570 Carillon Parkway, St. Petersburg, Florida Notices and reports provided for herein, in the case of Client, shall be transmitted by U.S. mail, overnight delivery, facsimile transmission or or other electronic delivery in accordance with normal business practices. Notices and reports shall be delivered to Client at the following address: The above addresses may be changed by appropriate notice given in accordance with these provisions. 16. ELECTRONIC DELIVERY OF ACCOUNT DOCUMENTS Client hereby agrees to receive all notices, documents, and other information related to Client s financial planning services electronically. Client s consent to electronic delivery extends to all information required to be provided by Advisor, and other third parties. This means Client may receive the financial planning services and all other information by electronic delivery. Client agrees that when such documents are electronically delivered to Client that it constitutes valid delivery of the information. Client may revoke this consent to electronic delivery at any time by providing written notice to us. Client agrees to keep a working address and other current contact information and complete any necessary forms, applications, or documents necessary to set up the electronic delivery process. Client will update any account information immediately if Client s address or other contact information changes. If Client does not maintain an address that is working and accessible, Client may be charged an additional fee. I wish to receive paper documents. BY SIGNING BELOW CLIENT ACKNOWLEDGES RECEIVING TFA s FORM ADV, PART 2A, THE ADVISOR S FORM ADV, PART 2B AND TFA S PRIVACY POLICY NOTICE. THIS AGREEMENT CONTAINS A PREDISPUTE ARBITRATION CLAUSE AS SET FORTH IN SECTION 13 (THIRTEEN) ABOVE. CLIENT ACKNOWLEDGES RECEIVING A COPY OF THIS AGREEMENT. Client s Signature Date Client s Name (Print) Client s Signature Date Client s Name (Print) Street Address Advisor s Signature Date 6 of 6

7 Notice of Privacy Policy Rev. March 4, 2014 FACTS Why? What? WHAT DOES TRANSAMERICA FINANCIAL ADVISORS, INC. ( TFA ) DO WITH YOUR PERSONAL INFORMATION? Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. The types of personal information we collect and share depend on the product or service you have with us. This information can include: Social Security number and income Account balances and account transactions Assets and investment experience When you are no longer our customer, we continue to share your information as described in this notice. How? All financial companies need to share customers personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers personal information; the reasons TFA chooses to share; and whether you can limit this sharing. Reasons we can share your personal information Does TFA share? Can you limit this sharing? For our everyday business purposes such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus For our marketing purposes to offer our products and services to you Yes Yes No No For joint marketing with other financial companies Yes No For our affiliates everyday business purposes information about your transactions and experiences For our affiliates everyday business purposes information about your creditworthiness No No We do not share We do not share For affiliates to market to you No We do not share For nonaffiliates to market to you No We do not share Questions? If you have questions or would like additional details regarding our privacy policy, please go to or send a written request to: Transamerica Financial Advisors, Inc. Attn: Compliance Dept. P.O. Box 9053, Clearwater, FL TFA

8 Page 2 Who are we Who is providing this notice? What we do How does TFA protect my personal information? How does TFA collect my personal information? Why can t I limit all sharing? Definitions Affiliates Nonaffiliates Joint marketing TFA Transamerica Financial Advisors, Inc. Notice of Privacy Policy Rev. March 4, 2014 To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. TFA maintains physical, electronic, and procedural safeguards to protect your nonpublic personal information. We collect your personal information, for example, when you Open an account or enter into an investment advisory contract Apply for insurance Make deposits or withdrawals from your account or provide account information Seek advice about your investments Tell us about your investment or retirement portfolio We collect your personal information from others, such as credit bureaus, affiliates, or other companies. Federal law gives you the right to limit only sharing for affiliates everyday business purposes information about your creditworthiness affiliates from using your information to market to you sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. Companies related by common ownership or control. They can be financial and nonfinancial companies. TFA does not share information among its affiliates for marketing purposes. Companies not related by common ownership or control. They can be financial and nonfinancial companies. TFA does not share information with nonaffiliates so they can market to you. A formal agreement between nonaffiliated financial companies that together market financial products or services to you. Our joint marketing partners include financial institutions and credit unions. Other important information This notice applies to individual consumers who are customers or former customers of TFA. This notice replaces all previous notices of our consumer privacy policy, and may be amended at any time. We will keep you informed of changes or amendments as required by law. If you close your account and transfer your account to another firm, in the process of transferring your investments we may share your information with the new broker-dealer or custodian that you or your representative selects. Unless otherwise restricted by your representative s contract with TFA, if the representative servicing your account leaves us, the representative may be permitted to retain copies of your nonpublic personal information so that he or she can assist with the transfer of your account and continue to serve you at a new firm. When your representative associates with a new firm, the representative s continuing use of such information becomes subject to the new firm s privacy policy. If your representative leaves our firm, or if you decide to close your TFA account and transfer to another firm with your representative, and you do not want us to share your nonpublic personal information (other than as permitted by law) with the representative or the new firm, you may contact us by calling: (727) If your primary address is in a state that requires your affirmative consent to share your personal information with a new firm, then you must give your written consent before we will allow your representative to take any of your personal information to the new firm. If any of your accounts with us have a Vermont mailing address, TFA will automatically treat those accounts as if you elected not to share information about your creditworthiness and not to receive marketing from our affiliates; we will also not obtain consumer credit reports about you without your consent. If any of your accounts with us have a California, North Dakota, or Vermont mailing address, TFA will automatically not include those accounts in any joint marketing activities with nonaffiliated financial companies