Investment Supervision Agreements

Transcription

1 WEALTH MANAGEMENT ADVISORY & CONSULTING AGREEMENT Collaborative Financial Solutions, LLC 5266 Hollister Ave. #220 Santa Barbara, CA Client Profile Information: Client (Minor, if custodial account) Name (first, middle initial, last) Joint Client (Custodian, if custodial account) Name (first, middle initial, last) Company Name or Trust Name (if applicable) Trustee/Corporate Officer Name (if applicable) Street Address (not a P.O. Box) Street Address (not a P.O. Box) Country of Citizenship Country of Citizenship Mailing Address (if different than above; can be P.O. Box) Mailing Address (if different than above; can be P.O. Box) Home Phone Business Phone Home Phone Business Phone Address Address Date of Birth (mm/dd/yyyy) SS# or Tax I.D. Number Date of Birth (mm/dd/yyyy) SS# or Tax I.D. Number Employment Status Employed Self-employed Retired t employed Employer (former if retired or Occupation (former if retired or unemployed) unemployed) Employment Status Employed Self-employed Retired t employed Employer (former if retired Occupation (former if retired or unemployed) or unemployed) Employer Street Address Employer Street Address Are you employed by a broker-dealer, securities exchange, or FINRA? Are you employed by a broker-dealer, securities exchange, or FINRA? Yes Yes Are you a senior officer, director, or large shareholder of a public Are you a senior officer, director, or large shareholder of a public company? company? Yes If yes, which company? Yes If yes, which company? Government-issued I.D. number State or Country of Issuance Government-issued I.D. number State or Country of Issuance 1 P a g e

2 Financial and Investment Information Investment Objective Investment Experience Asset Allocation Portfolio (if applicable) Income with Capital Preservation Income with Moderate with Income ne Limited Good Excellent Conservative Moderate / Conservative Moderate Moderate / Aggressive Aggressive Annual Income $0 - $25,000 $25,001 - $49,999 $50,000 - $99,999 $100,000 - $249,999 $250,000 - $499,999 $500,000 - $749,999 Net Worth $0 - $24,999 $25,001 - $49,999 $50,000 - $99,999 $100,000 - $249,999 $250,000 - $499,999 $500,000 - $749,999 Liquid Net Worth $0 - $24,999 $25,001 - $49,999 $50,000 - $99,999 $100,000 - $249,999 $250,000 - $499,999 $500,000 - $749,999 $750,000 - $999,999 $750,000 - $999,999 $750,000 - $999,999 Aggressive $1,000,000 + $1,000,000 + $1,000,000 + This Wealth Management Advisory and Consulting Agreement ( Agreement ), made this day of, 20 between the below signed party(s) (hereinafter referred to as the Client ), and ( Adviser, IFP ), an investment adviser registered with the U.S. Securities and Exchange Commission, doing business as Collaborative Financial Solutions, LLC. 1) Recitals: a) The Client hereby appoints the Adviser as an investment adviser to perform the services set forth in Exhibit A hereinafter described, and the Adviser accepts such appointment; and b) The Adviser shall be responsible for the implementation of the services for which it is engaged regarding those assets (which assets, together with all additions, substitutions and/or alterations thereto are hereinafter referred to as the Assets or Account ) designated by the Client on Exhibit A to be subject to the terms and conditions of this Agreement. 2) Scope of Engagement: a) Investment Supervision Direct Management i) On a discretionary basis, as designated in Exhibit A, Adviser may design, revise, and reallocate a custom portfolio for Client. Investments are determined based upon factors such as Client s investment objectives, risk tolerance, net worth, net income, age, time horizon, tax situation and other various suitability factors. Adviser is authorized to buy, sell, and trade in financial instruments and investment products, on margin or otherwise, and to give instructions in furtherance of such authority to a registered broker-dealer, other financial institution, and/or the Custodian (see paragraph 4 for further information regarding Custodian) of the Assets. ii) On a non-discretionary basis, as designated in Exhibit A, Adviser may provide periodic recommendations to Client and if such recommendations are approved/authorized, Adviser will ensure that the authorized recommendations are carried out for Client. Subsequent to Client approval, Adviser is authorized to buy, sell, and trade in financial instruments and investment products, on margin or otherwise, and to give instructions in furtherance of such authority to a registered broker-dealer, other financial institution, and/or the Custodian (see paragraph 4 for further information regarding Custodian) of the Assets. b) Investment Supervision Use of Outside Investment Advisers and Wrap Programs i) On a discretionary basis, as designated in Exhibit A, Adviser may allocate all or a portion of the Assets, based upon Client s stated investment objectives, among other investment advisers. ii) Adviser shall not have control over the specific investment decisions made by other investment advisers. iii) The specific services provided by other investment advisers will be set forth in their Form ADVs and all such engagements will be subject to the other investment advisers investment management agreement. iv) This service involves Adviser s indirect management of Client s assets; involving other investment advisers and wrap programs offered by such other investment advisers. Under this service, Adviser may select other investment advisers that may be sponsoring and/or managing wrap programs of their own and those other investment advisers will provide the specific management services related to Client s assets. v) Adviser will retain the authority to hire and fire such other investment advisers. c) Financial Planning i) The Adviser may prepare and provide Client with a written financial plan. ii) Periodic review of a financial plan may be available upon Client request and at no charge only if Client has engaged Adviser for Adviser s Investment Supervisory services as set forth above in paragraphs 2(a) and 2(b). These periodic reviews will cover only the retirement planning component of a financial plan. 2 P a g e

3 iii) Additional reviews, aside from those described in paragraph 2(c)(ii), and ongoing implementation of a financial plan are not part of Adviser s standard financial planning service. These additional reviews and ongoing implementation activities are available for an additional fee. 3) Client Acknowledgements: a) The Client agrees to provide information and/or documentation requested by Adviser in furtherance of this Agreement as it pertains to Client s objectives, needs and goals, and to keep Adviser informed of any changes regarding same. The Client acknowledges that Adviser cannot adequately perform its services for the Client unless the Client diligently performs his responsibilities under this Agreement. Adviser is expressly authorized to rely on and act upon any information obtained from the Client, Client s attorney, accountant or other professionals, in connection with the terms of this Agreement; b) Client authorizes Adviser to respond to inquiries from, and communicate and share information with, Client s attorney, accountant and other professionals to the extent necessary in furtherance of Adviser s services under this Agreement; and c) Client acknowledges that Exhibit A is hereby incorporated into and considered part of this Agreement. 4) Custodian: a) The Assets shall be held by an independent, Qualified Custodian or issuer, not Adviser. At no time shall Adviser be considered the Custodian of any client Assets. b) The term "Qualified Custodian" for purposes of this Agreement shall mean the financial institution designated by Adviser herein such as a broker-dealer or other financial institution maintaining Assets of the Client. c) The Adviser is authorized to give instructions to Qualified Custodian or issuer with respect to all trading activities deemed appropriate by Adviser and in connection with its services provided under this Agreement. d) Client will have the opportunity to object to the fee amount or method of calculation by telephone or in writing, should the client believe that such is erroneous. e) The Client may revoke this fee deduction authorization in writing at any time. f) Qualified Custodian or issuer, not Adviser, may send periodic statements (at least quarterly) showing all transactions occurring on behalf of the Client. g) Designation of Qualified Custodian. Unless otherwise specified by Adviser, Adviser intends to use one of the following Qualified Custodians: LPL Financial, Charles Schwab & Co., Inc., Fidelity Investments, TD Ameritrade, or Pershing, LLC. h) Unless specifically requested and agreed to otherwise, Qualified Custodian shall generally hold Assets in an individual client account, separated from that of other client assets or Adviser s assets. 5) Adviser Compensation: a) For a description of Adviser s compensation ( Advisory Fees ) please refer to Exhibit A. b) Other fee considerations. i) The Adviser is authorized to instruct the Qualified Custodian to deduct from Client s account(s), the appropriate dollar amount(s) necessary to satisfy the Advisory Fees in connection with its services under this Agreement. The Adviser shall not be entitled to cash or other Client Assets held by the Qualified Custodian except those monies owed to Adviser in connection with the Adviser Compensation section of this Agreement. ii) Subject to the Qualified Custodian s fee debit procedures, Advisory Fees will be payable first from free credit balances, if any, in the account (as designated in Exhibit A) and second, from the liquidation of any money market funds. If such assets are insufficient to satisfy payment of the Advisory Fees, you authorize Adviser to instruct the Qualified Custodian to liquidate a portion of any assets in the applicable account to cover the Advisory Fee. iii) In addition to the Advisory Fees, and any custodial fees charged by Qualified Custodian or issuer, the Client may also incur, relative to certain investment products (such as mutual funds, variable contracts, direct participation programs), charges imposed directly at the investment product level (e.g. advisory fees, administrative fees, and/or other expenses). iv) Any custodial fees charged to the Client by the Qualified Custodian or issuer are exclusive of, and in addition to, the Advisory Fees as defined herein. v) Client acknowledges that he/she shall be solely responsible for the payment of the Advisory Fees and any other fees associated with the Assets. vi) Fees paid in advance will be considered earned by Adviser and non-refundable to Client up to the effective termination of this Agreement as described in Section 11. Upon receipt of a proper notice of termination ( Termination tice ) as described in Section 11, Adviser shall calculate a pro rata refund of any fees not yet earned by Adviser after the effective termination date of this Agreement. The pro rata refund will equal the total number of calendar days remaining in the billing period after the date of the termination of the Agreement to the end of that billing period divided by the total number of calendar days in that billing period. The result of that calculation will be multiplied by the total fee already paid for that quarter. The result of that calculation will represent the refund owed to Client. Refunds of advance payments owed back to Client shall be paid as soon as reasonably possible but not sooner than ten (10) business days after Adviser s receipt of a proper Termination tice. vii) Adviser shall not be compensated on the basis of a share of capital gains upon or capital appreciation of the funds or any portion of the funds of the client. 3 P a g e

4 6) Risk Acknowledgment: Adviser does not guarantee the future performance of the investment product, strategy, or recommendations related thereto. Client understands that investment products may be subject to various market, interest rate, currency, economic, political and business risks, and that the purchase or sale of any investment products will not always result in profitable performance. 7) Directions to Adviser: Adviser may request that all directions, instructions and/or notices from the Client to Adviser be submitted in writing, including notification of a change in the Client s investment objective(s). The Adviser shall be fully protected in relying upon any direction, notice, or instruction until it has been duly advised in writing of changes thereto. 8) Adviser Liability: Except as otherwise provided by federal or state securities laws, Adviser, acting in good faith, shall not be liable for any action, omission, investment recommendation/decision, or loss in connection with this Agreement including, but not limited to, the investment of the Assets, or the acts and/or omissions of other professionals or third-party service providers recommended to the Client by Adviser, including a broker-dealer, investment adviser, Qualified Custodian, issuer, or other party. Adviser s services under this Agreement shall not apply to assets not contemplated by this Agreement. Under certain circumstances, federal and state securities laws impose liabilities on persons who act in good faith and, therefore, nothing contained in this Agreement shall constitute a waiver of any rights that the client may have under federal and state securities laws. 9) Assignment: This Agreement may not be assigned by either the Client or Adviser without the prior written consent of the other party. 10) Termination: This Agreement will continue in effect until the earlier of the point at which: a) It is terminated by either party by written notice to the other ( notice will not suffice), which written notice must be signed by the terminating party and received by the other party at least ten (10) days in advance of the requested termination date; or b) The securities offering(s) in which the Client has invested are closed (as defined by the specific offering s offering memorandum). c) Termination of this Agreement will not affect (i) the validity of any action previously taken by Adviser under this Agreement; (ii) liabilities or obligations of the parties from transactions initiated before termination of this Agreement; or (iii) Client s obligation to pay advisory fees (prorated through the date of termination). Upon the termination of this Agreement, Adviser will have no obligation to recommend or take any action with regard to the securities, cash or other investments in the Account. 11) n-exclusive Services: Adviser, its officers, employees, and agents, may have or take the same or similar positions in specific investments for their own account(s), or for the accounts of other clients, as Adviser does for the Assets of Client. Client expressly acknowledges and understands that Adviser shall be free to render investment services to others and that Adviser does not make its investment services available exclusively to Client. thing in this Agreement shall impose upon Adviser any obligation to purchase or sell, or to recommend for purchase or sale, for or on behalf of Client any security which Adviser, its principals, affiliates or employees, may purchase or sell for their own benefit or for the benefit of any other client, if in the reasonable opinion of Adviser such investment would be unsuitable for the Client or if Adviser determines in the best interest of the Client it would be impractical or undesirable. 12) Death or Disability: The death, disability or incompetence of Client will not terminate or change the terms of this Agreement. However, Client s executor, guardian, attorney-in-fact or other authorized representative may terminate this Agreement by giving ten (10) days advance written notice to Adviser in accordance with the termination provisions described herein. The Client recognizes that the Qualified Custodian or issuer may not allow any further transactions until such time as the necessary documentation is provided to the Qualified Custodian or issuer. 13) Disclosure Document: The Client hereby acknowledges prior receipt of a copy of the Disclosure Document of the Adviser (i.e. Part II of Form ADV). Client further acknowledges that he has had a reasonable opportunity (i.e. at least 48 hours) to review said Disclosure Document, and to discuss the contents of same with professionals of his choosing, prior to the execution of this Agreement. If the Client has not received copy of the Adviser s Disclosure Document at least 48 hours prior to execution of this Agreement, he/she/it shall have 5 business days from the date of execution of this Agreement to terminate Adviser s services without penalty under this Agreement. 14) Severability: Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms or provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in such jurisdiction or any other jurisdiction. 15) Client Conflicts: If this Agreement is between Adviser and related clients (i.e. husband and wife, life partners, etc.), Adviser s services shall be based upon the joint goals communicated to Adviser. Adviser shall be permitted to rely upon instructions from either party with respect to disposition of the Assets, unless and until such reliance is revoked in writing to Adviser. The Adviser shall not be responsible for any claims or damages resulting from such reliance or from any change in the status of the relationship between the clients. 16) Privacy tice: Client acknowledges receipt and understanding of Adviser s Privacy Policy tice, attached hereto as Exhibit B. 17) Electronic Delivery: Client authorizes Adviser to distribute materials and information to client in an electronic format to the address provided on the preceding page or as otherwise provided by Client. 4 P a g e

5 18) Verification of Customer Identity: Adviser may be required by federal law to take any necessary and appropriate measures to confirm the identity of Client. Adviser may obtain information such as Client name; Client address; Client date of birth; and Client identification number (i.e. driver s license number, passport number, etc.) Adviser may require Client to provide a copy of a current, governmentissued photo identification. Adviser may perform a background check or a credit report in an effort to help confirm certain information provided by Client. 19) Emergency Contact Information: John Whisenant (813) ) Applicable Law: This Agreement supersedes and replaces, in its entirety, all previous investment advisory agreement(s) between the parties. To the extent not inconsistent with applicable law, this Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 21) Authority: The Client acknowledges that s/he/they/it has (have) all requisite legal authority to execute this Agreement, and that there are no encumbrances on the Assets. The Client correspondingly agrees to immediately notify Adviser, in writing, if either of these representations should change. 22) Arbitration. a) Arbitration Provisions. i) 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. ii) Arbitration awards are generally final and binding; a party s ability to have a court reverse or modify an arbitration award is very limited. iii) The ability of the parties to obtain documents, witness statements and other discovery is generally more limited in arbitration than in court proceedings. iv) The arbitrators do not have to explain the reason(s) for their award. v) The panel of arbitrators will typically include a minority of arbitrators who were or are affiliated with the securities industry. vi) The rules of some arbitration forums may impose time limits for bringing a claim in arbitration. In some cases, a claim that is ineligible for arbitration may be brought in court. vii) The rules of the arbitration forum in which the claim is filed, and any amendments thereto, shall be incorporated into this Agreement. viii) The arbitration forum shall not be selected if traveling to its location would cause undue, not ordinary, hardship or financial expense to the Client. b) Important Arbitration tices. i) If Adviser seeks to compel arbitration of such claims, Adviser must agree to arbitrate all of the claims contained in the complaint if the customer so requests; ii) person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; 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; iii) You are entitled to keep a copy of this Agreement; iv) You are entitled to request a copy of this Agreement at anytime; and v) You are entitled to request the names of and information on how to contact or obtain the rules of all arbitration forums in which a claim may be filed under this Agreement. 23) Execution: IN WITNESS WHEREOF, the Client and Adviser have each executed this Agreement on the day, month and year written on the facing page, by signing the on the facing page and below. By signing and dating below, a) I acknowledge my receipt and understanding of this Agreement and all provisions (including those pertaining to any pre-dispute arbitration clause) set forth within it; and b) Agree to abide by the provisions set forth within this Agreement. This Agreement contains a pre-dispute arbitration clause located in the Arbitration paragraph above. Client Signature: Date: Joint Client Signature: Date: Investment Advisor Representative Signature: Date: RIA Compliance Approval: Date: 5 P a g e

6 Exhibit A Services and Asset/Account Designation and Fee Schedule Service Type Service Description Discretion 1 Investment Supervision Direct Management Full ne 2 Investment Supervision Use of Outside Investment Advisers and Wrap Programs 3 Financial Planning N/A N/A Custodian/Program/Platform Name(s) Direct Management & Outside Investment Managers/Wrap Programs Fee Grid Annual Asset Based Fee Account Investment Number Advisor Fee Platform/Manager or Custodial Fee (If Applicable) Total Fee Billing Method Quarterly Via custodian Advance Arrears Breakpoints and Fees Investment Adviser Fee Schedule Account Value Annualized Asset Based Fee $0 - $500, % $500,001 - $1,000, % $1,000, $2,500, % $2,500, % Financial Planning and Consulting Services Financial Planning (Circle One): Comprehensive Specific Updated Fee: Adviser s fixed/flat fee (one-time) for its Financial Planning services under this agreement is $ directly to Client, and either 100% in advance or 50% in advance and balance upon completion., billed Consulting Services Hourly Billing Fee: Adviser s hourly fee is $, and services rendered should not exceed $. Types of Planning and Consulting Services Available (Check All That Apply): Pre & Post Retirement Planning College/Education Planning Major Purchase Planning Insurance Needs Estate Planning Tax Planning Investment Planning Business Planning Asset Liquidity Analysis Other: Other: Other: 6 P a g e

7 Exhibit B Privacy Policy This Privacy Policy tice is being provided to you on behalf of ( IFP ). This notice has been prepared to describe to you what IFP collects, handles, and safeguards your personal information. Why are you receiving this notice? 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. What information do we collect? The types of personal information we collect and share depend on the service that we provide to you. This information can include, but would not be limited to (1) your social security number and income; (2) your address and date of birth; and (3) your account balances and transactions. How do we typically share your personal information? Financial companies typically need to share customers personal information internally in order to run their everyday business to process transactions, maintain or service customer accounts, and report to credit bureaus. In the section below, we list the reasons many financial companies can share their customers personal information; the reasons we choose to share your information; and whether you can limit this sharing. Reasons we can share your personal information Do we share? Can you limit this sharing? Yes For our everyday business purposes To process your transactions, open accounts, report to credit bureaus, and in connection with assistance provided by outside service providers such as attorneys, accountants, regulatory consultants, etc. Yes For our marketing purposes To offer our products and services to you For joint marketing with other financial companies For our affiliates everyday business purposes Information about your transactions and experience For our affiliates everyday business purposes Information about your creditworthiness For our affiliates to market to you For non-affiliates to market to you Sharing practices How often does IFP notify me about their practices? How does IFP protect my personal information? How does IFP collect my personal information? Why can t I limit all sharing? How does IFP treat my personal information once I am no longer a customer? We must notify you about our sharing practices when you engage our services and each year while you are a customer. 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 offices. We collect nonpublic personal information about you from the following sources: Information we receive from you on applications or other forms; Information about your transactions with us, our affiliates, or others; and Information we receive from a consumer reporting agency. Federal law gives you the right to limit sharing only for affiliates everyday business purposes information about your creditworthiness; affiliates to market to you; and non-affiliates to market to you. State laws and individual companies may give you additional rights to limit sharing. The firm will provide nonpublic information about former customers only if required to do so by law or regulation or to those parties who need such information in order for the firm to carry out any continued obligation with respect to the services covered by the former adviser/customer relationship. Contact Us If you have any questions about our Privacy Policy and how we handle your personal information, please let us know. Call or 7 P a g e