Comprehensive Financial Planning Services Agreement

Transcription

1 Comprehensive Financial Planning Services Agreement Client A s Name Client B s Name Date Signed

2 This agreement is entered into as of the day of, 20 by and between Amicus Financial Advisors, LLP ( Amicus ) and ( the client ). I. SCOPE OF ENGAGEMENT A. Matter: The client has engaged Amicus to provide personal financial planning services and to assist in the implementation of the client s financial plan. B. Firm Functions: Amicus agrees to do each of the following: 1. Gather the information necessary to develop the client s financial plan. 2. Analyze the client s current financial situation by preparing financial statements and projections and assessing the client s insurance, investments, and estate plan. 3. Assist the client in developing specific, quantifiable financial goals. 4. Prepare and explain a written, comprehensive financial plan that maximizes the client s ability to efficiently achieve those goals. 5. Assist the client with the implementation of parts of the plan and coordinate the implementation of the rest of the plan with the client s other financial advisers. 6. Appropriately administer investment assets if these services have been requested by the client and an Agreement for Investment Advisory Services has been executed by the client and the firm. 7. Periodically update the analysis and recommendations based on the client s changing personal and financial situation, to the extent that the client requests these services. 8. While performing these functions, Amicus promises to do each of the following: Strive to make the client comfortable throughout the planning process Treat the goals and concerns of the client with respect Keep all client information strictly confidential Provide written recommendations that are well suited to the client s goals and personal situation Fully disclose all sources of compensation and avoid sources of loss of objectivity Clearly explain all recommendations and answer all of the client s questions C. Client Functions: The client agrees to do each of the following: Discuss personal matters and concerns without withholding any information. Promptly provide any requested information that would assist Amicus. Amicus Financial Advisors LLC Page 2 of 7

3 Undertake the agreed upon actions in a timely manner. Remain open to new ideas. Promptly pay the fee and any reasonable expenses that Amicus incurs on your behalf. Promptly inform Amicus of material changes in family status, circumstances, or goals. II. FEES AND EXPENSES A. Fees for Planning and Implementation Services: The client and Amicus agree that the following method shall be used to determine fees for planning and implementation services: 1. The fee shall be based upon the amount of time devoted to the client. The fee shall be calculated at the rate of $150 per hour of partner time and $100 per hour of associate time. 2. The estimated fee for services performed by Amicus in preparing and implementing the client s financial plan shall be $. The fee billed to the client shall not exceed the estimated fee. The estimated fee does not include ongoing services such as asset management or monitoring and updating the plan. These services shall be billed on an ongoing basis if the client hires Amicus to provide them. The client shall be under no obligation to use Amicus to implement any part of the plan. 3. At the discretion of Amicus, the final fee may be revised downward from the fee that would result from using hourly rates if Amicus determines that the use of the hourly rates overstate the reasonable value of the services provided. Fees shall not be revised upward from the amount calculated using hourly rates. 4. If the client believes that the fee as determined under this agreement exceeds the value of the services delivered by Amicus, the client may instead pay the value that the client believes was delivered. B. Fees for Asset Management Services: Asset management fees shall be calculated and billed separately and shall be in addition to the fees discussed above. These services are provided only at the request of the client and after the Agreement for Investment Advisory Services is signed. The fees are based upon a percentage of the amount of assets under management and are disclosed in the agreement for those services. C. Fees for Other Ongoing Services. Amicus will remain available on an ongoing basis to answer questions, assist the client s other advisers, prepare tax returns, and make recommendations regarding these and other matters. Many clients request regular reviews (quarterly, semi-annually or annually) to monitor the appropriateness of the plan in light of Amicus Financial Advisors LLC Page 3 of 7

4 changes in the tax laws, financial markets, or the client s personal or financial situation. Fees for these services are not included in the estimated fee and shall be calculated using the regular hourly rates. D. Expenses: The client acknowledges that occasionally, Amicus may incur extraordinary expenses in providing services to the client. The client agrees to reimburse Amicus for such expenses, which may include, but shall not be limited to, courier services, long-distance telephone calls, and travel expenses. E. Schedule of Billing and Payments: The client and Amicus agree to the following schedule of billing and payments for fees and expenses: 1. Fees and expenses shall be billed after services are rendered. 2. The client agrees to pay all fees and expenses within 15 days of receiving the bill. 3. Any unpaid balance shall accrue an interest charge of 18% per annum from the due date until paid. F. Description of Charges: Amicus agrees to include in the invoice a description of the services and expenses for which the client is being charged. III. COMPENSATION STRUCTURE A. Effect of Commissions on Objectivity: Amicus believes that commissions, especially when not disclosed, have the potential to introduce bias into the advice given by financial advisers and most often raise the cost of the product to the client. When selecting financial products to recommend to clients, Amicus seeks appropriate products that do not pay commissions to advisers. B. Investment Products: All investment products recommended shall only be no-load products, and Amicus shall receive no compensation from any investment provider. C. Insurance Products: Most insurance products recommended will be low-load products in which Amicus receives no compensation from the provider. However, due to the relatively small number of low-load insurance providers and other factors in the insurance market, in some instances commissions will be received by the firm. IV. GENERAL MATTERS A. Termination of Agreement: The relationship established by this agreement may be terminated as follows: 1. Amicus may suspend or terminate the relationship for any just reason. 2. The client may terminate the relationship at any time with or without cause. 3. The client agrees to promptly pay all fees earned and all expenses incurred prior to the termination, except that if the client wishes to terminate this agreement within the first Amicus Financial Advisors LLC Page 4 of 7

5 five days following the date on which all parties have signed this agreement, Amicus will waive all fees and reimburse all expenses. 4. Amicus agrees to cooperate with any successor financial adviser to facilitate a smooth transition. B. Information to be Made Available to the Client: Amicus agrees to assert a diligent effort to inform the client as to the status of any service performed under this agreement. Amicus agrees to make all written material sent or received by Amicus reasonably available to the client for reading in Amicus office. Copies of such materials shall be provided at the client s request and at the client s expense. Amicus agrees to assert a reasonable effort to maintain the files of Amicus relative to the service provided to the client for a period of five years following the conclusion of each matter. C. Conflicting Engagement: Amicus agrees not to accept, without prior approval from the client, any engagement known by Amicus to be in conflict with the interests of the client. D. Privacy Statement: As a client of Amicus, you share personal and financial information with us. Your privacy is important to us, and we are dedicated to safeguarding your information. Information Provided by Clients In the normal course of doing business, we typically obtain the following non-public personal information about our clients: Personal information regarding our clients identity such as name, address and social security number; Information regarding securities transactions effected by us; and Client financial information such as net worth, assets, income, bank account information and account balances. How We Manage and Protect Your Personal Information We do not sell information about current or former clients to third parties, nor is it our practice to disclose such information to third parties unless requested to do so by a client or client representative or, if necessary, in order to process a transaction, service an account or as permitted by law. Additionally, we may share information with outside companies that perform administrative services for us. However, our contractual arrangements with these service providers require them to treat your information as confidential. To protect your personal information, we maintain physical, electronic and procedural safeguards to protect your personal information. Our Privacy Policy restricts the use of client information and requires that it be held in strict confidence. Client Notifications We are required by law to annually provide a notice describing our privacy policy. In addition, we will inform you promptly if there are changes to our policy. Please do not hesitate to contact us with questions about this notice. E. Effort and Outcome: Amicus agrees to use its best efforts in providing services to the Amicus Financial Advisors LLC Page 5 of 7

6 client. However, the client acknowledges that Amicus has given no assurances regarding the outcome of any matters being handled by Amicus. All services are advisory in nature, and Amicus cannot guarantee the performance of any investment or insurance products that may be purchased to implement recommendations in the plan. F. Legal and Accounting: It is understood that Amicus shall not provide any accounting or legal advice or prepare any accounting or legal documents for the client. G. Estimated Time: Amicus shall commence work on this matter immediately upon the return of a copy of this agreement signed by the client. It is expected that the financial plan can be prepared within three weeks and that implementation can begin thereafter. Services shall be considered short-term in nature and shall be limited to the subject matter involved. H. Access to Information: Amicus is likely to utilize the services of any combination of its partners, associates, and administrative assistants in preparing the plan. Therefore, these individuals are likely to have access to the personal and financial information necessary to prepare and implement the financial plan. I. Disputes: Any disputes regarding fees, accounts, or other matters shall be settled according to a mutually agreed upon arbitration. Although there are other forums for client to seek resolution of disputes that may arise between the investment adviser and client, including ways to seek restitution and damages, by signing this agreement, client agrees to waive said rights to alternate forums and submits to mandatory arbitration if requested by the investment advisor in response to a dispute. J. Complete Integration, Binding Upon All Parties: This agreement contains the entire agreement between the client and Amicus. This agreement shall not be modified except by written agreement signed by the client and an authorized representative of Amicus. This agreement shall be binding upon the client and Amicus and their respective heirs, executors, legal representatives, and successors. By entering into this agreement, the client does not waive any rights under any applicable state or federal statutes. K. Intended Beneficiaries: The financial planning services provided shall be intended solely for the benefit of the client and shall be based on the particular circumstances of the client at the time the services shall be delivered. Future events may cause material differences between the prospective and actual results. L. Receipt of Disclosure: Client acknowledges receipt of Part 2 of Form ADV; a disclosure statement containing the equivalent information; or a disclosure statement containing at least the information required by Part 2A Appendix 1 of Form ADV, if the client is entering into a wrap fee program sponsored by the investment adviser. If the appropriate disclosure statement was not delivered to the client at least 48 hours prior to the client entering into any written or oral advisory contract with this investment adviser, then the client has the right to terminate the contract without penalty within five business days after entering into the contract. For the Amicus Financial Advisors LLC Page 6 of 7

7 purposes of this provision, a contract is considered entered into when all parties to the contract have signed the contract, any other provisions of this contract notwithstanding. M. Non-assignment: This contract is not assignable by Amicus without the prior written consent of the client. N. Tax Identification Number: The client certifies that the Social Security Number set forth below is correct and that the client is not subject to "backup withholding" under section 340(a)(1)(C) of the Internal Revenue Code or any successor provision. The client is a citizen of the United States. Social Security #: Social Security #: O. Past Performance: The client understands that the past performance of investments recommended by Amicus should not be construed as an indication of future results, which may prove to be better or worse than the past. Amicus make no promises, representations or warranties that any of Amicus services will result in a profit. IN WITNESS WHEREOF, the parties have executed this agreement as of the date and year first above written. Amicus Financial Advisors LLC Client A Client B Amicus Financial Advisors LLC Page 7 of 7