Investment Advisory Services Agreement

Transcription

1 Investment Advisory Services Agreement Client A s Name: Client B s Name: Date Signed Amicus Financial Advisors LLC Page 1 of 7

2 This agreement is entered into as of the day of 2012 by and between Amicus Financial Advisors, LLC ( Amicus ) and ( the client ). I. SCOPE OF ENGAGEMENT A. Matter: The client wishes to retain Amicus to act as an investment advisor for various accounts in accordance with the terms and conditions of this agreement. This agreement sets forth responsibilities of the parties with regard to the investment management services to be provided by Amicus. Except as otherwise set forth in this agreement, the client authorizes Amicus to investigate, purchase, and sell on behalf of the client, various securities and investments. Amicus is authorized to execute purchases and sales of securities on the client s behalf without consulting the client regarding each sale or purchase. B. Firm Functions: Amicus agrees to do each of the following: 1. Amicus shall draft a personal investment policy statement ( IPS ) for the client. 2. Amicus shall give the client the benefit of our continuing study of economic conditions, security markets, and other investment issues. On the basis of these studies, Amicus shall provide advice from time to time regarding the allocation and investments of the client s assets including money market accounts, CDs, municipal and government securities, unit investment trusts, REITs, mutual funds, annuities, limited partnerships, insurance investments, stocks, bonds, exchange traded funds, and other investments introduced in the future. 3. Amicus will periodically provide the client with a statement setting forth the funds and securities, which constitute the client s managed assets at the end of each period. The client shall in addition receive directly from all corresponding brokers, banks, mutual funds, partnership sponsors and/or insurance companies which hold the client s investments, a statement reflecting the client s investment(s) in their custody. 4. Amicus will, after consulting with the client, recommend that the client maintain and/or establish, in the name of the client, accounts into which the client shall deposit funds and/or securities, which shall be referred to as "managed assets" or assets under management. 5. Amicus shall exercise its best efforts to act in good faith and in the best interests of the client. Amicus shall provide written disclosure to the client prior to the engagement of Amicus, and thereafter throughout the term of the engagement, of any conflicts of interest, which will or reasonably may compromise the impartiality or independence of Amicus or any Amicus advisor. Amicus Financial Advisors LLC Page 2 of 7

3 6. Amicus shall appropriately administer investment assets that the client requests Amicus to manage, taking into consideration the client s goals, financial plan, personal situation, risk tolerance, risk capacity, taxes, and other parameters. 7. While performing these functions, Amicus promises to do each of the following: Strive to make the client comfortable throughout the engagement Treat the goals and concerns of the client with respect Keep all client information as strictly confidential Provide recommendations that are well-suited to the client s goals, personal situation, and IPS Explain all recommendations and answer all of the client s questions C. Client Functions: The client agrees to do each of the following: 1. Discuss personal matters and concerns without withholding any information. 2. Promptly provide any requested information that would assist Amicus. 3. Undertake the agreed upon actions in a timely manner. 4. Remain open to new ideas. 5. Promptly pay the fees and any reasonable expenses that Amicus incurs on behalf of the client. 6. Grant to Amicus limited discretionary power to make exchanges and transfers of managed assets. The client may at any time increase or decrease the managed assets. The managed assets will be held solely in the client s name and will require the client s authorization for withdrawal. II. FEES AND EXPENSES A. Fees for Asset Management Services: The client and Amicus agree that the following method shall be used to determine fees for asset management services. Asset management fees shall be calculated by multiplying an annual percentage by the amount of assets under management at the beginning of each calendar quarter. One third of this quarterly amount is due at the end of each calendar month. Fees for partial quarters and fees on accounts with substantial withdrawals or contributions shall be calculated on a pro-rata basis. Fees are negotiable in limited circumstances. The annual percentages shall be as follows: % of the first $500,000 under management % of the amount over $500,000 and below $1,500,000 under management % of the amount over $1,500,000 under management B. Fees for Other Ongoing Services: Amicus will remain available on an ongoing basis to answer questions, assist the client s other advisers, and make recommendations regarding these and other matters. Many clients request regular quarterly or annual Amicus Financial Advisors LLC Page 3 of 7

4 reviews to monitor the appropriateness of the plan in light of changes in the tax laws, financial markets, or the client s personal or financial situation. Fees for these services are generally included in the asset management fee. If the client requests a service that is not covered by the fee for asset management service, Amicus will inform the client prior to engaging in these services. C. 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. D. Schedule of Billing and Payments: The client and Amicus agree to the following schedule of billing and payments for fees and expenses. Asset management fees shall be paid from the client s brokerage account at the end of each calendar month and the client shall authorize Amicus to bill fees to the custodian to be paid from the client s account. When the fee is submitted to the custodian, Amicus will send the custodian an invoice with the amount of fee to be submitted. Each quarter, Amicus will also send the client an invoice itemizing the fee. The invoice will include the formula used to calculate the fee, the amount of assets under management on which the fee is based, and the time period covered by the fee. E. No Commissions: 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 investment products to recommend to clients, Amicus does not accept commissions and receives no compensation from any investment provider with the possible exception of fixed annuity products. III. 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 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. Amicus Financial Advisors LLC Page 4 of 7

5 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 our 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. D. Effort and Outcome: Amicus agrees to use its best efforts in providing services to the 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. Amicus Financial Advisors LLC Page 5 of 7

6 E. 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. F. Access to Information: Amicus is likely to utilize the services of any combination of its partners, associates, and administrative assistants in providing investment advisory services. Therefore, these individuals are likely to have some access to the personal and financial information. G. 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. H. 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. This Agreement shall be governed by the laws the client s state of residence. I. 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. Initial Initial J. 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 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 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. K. Non-assignment: This contract is not assignable by Amicus without the prior written consent of the client. Amicus Financial Advisors LLC Page 6 of 7

7 L. 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 #: M. 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 Client Amicus Financial Advisors LLC Page 7 of 7