Financial Advisory Agreement Template for the United Arab Emirates

A Financial Advisory Agreement is a legally binding contract that governs the professional relationship between financial advisors and their clients in the United Arab Emirates. This document is essential for establishing clear terms of engagement while ensuring full compliance with UAE's comprehensive financial regulatory framework. The agreement protects both parties by defining service scope, responsibilities, compensation structures, and regulatory obligations under local law.

When do you need this document?

You need a Financial Advisory Agreement when engaging any professional financial advisory services in the UAE. Investment banks require this agreement before providing merger and acquisition advisory services to corporate clients. Wealth management firms use these contracts when offering portfolio management and investment planning services to high-net-worth individuals and family offices. Corporate finance advisory companies need this document when providing restructuring, capital raising, or strategic advisory services to businesses. Private banking institutions require these agreements for personalized financial planning and investment advisory services. The document is also essential when financial advisory firms provide consultation on regulatory compliance, risk management, or financial restructuring matters.

Key legal considerations

Your Financial Advisory Agreement must include comprehensive service descriptions that align with your advisor's specific regulatory permissions under UAE law. The contract should clearly define fee structures, payment terms, and any performance-based compensation arrangements while ensuring transparency in all financial dealings. Important clauses must address confidentiality obligations, particularly regarding client financial information and investment strategies. The agreement should specify termination procedures, including notice periods and fee settlement arrangements. Risk disclosure provisions are crucial, clearly outlining potential investment risks and the advisor's liability limitations. Anti-money laundering compliance clauses must be included to meet UAE Federal Law No. 20 of 2018 requirements, including client identification and reporting obligations.

Legal requirements in United Arab Emirates

Under UAE Federal Law No. 14 of 2018 (Central Bank Law), financial advisors must maintain proper licensing from the Central Bank of the UAE or relevant free zone authorities. Your agreement must comply with SCA Board of Directors' Decision No. 13/R.M of 2021, which specifically regulates financial advisory activities in the UAE mainland. The contract must include mandatory disclosures about the advisor's regulatory status, potential conflicts of interest, and any third-party relationships that might affect service delivery. UAE Federal Law No. 5 of 1985 (Civil Transactions Law) governs the contractual framework, requiring clear terms regarding obligations, performance standards, and dispute resolution mechanisms. For advisors operating in financial free zones, additional compliance with zone-specific regulations may be required, and these requirements must be clearly referenced in the agreement.