Account Management Agreement Template for the United States

An Account Management Agreement is a legally binding contract that establishes the relationship between an account manager and client under United States federal law. This document governs how financial accounts, investment portfolios, or business accounts are managed, defining each party's rights, responsibilities, and obligations throughout the professional relationship.

When do you need this document?

You need an Account Management Agreement when hiring a professional to manage your investment accounts, retirement funds, or business financial accounts. Investment advisers are required by the Investment Advisers Act of 1940 to have written agreements with clients before providing advisory services. The document is also essential when establishing relationships with custodians, sub-advisors, or third-party account managers. Financial institutions must use these agreements to comply with Bank Secrecy Act requirements and USA PATRIOT Act customer identification procedures. Additionally, you need this agreement when transferring account management responsibilities or when regulatory changes require updated compliance procedures.

Key legal considerations

The agreement must clearly define the scope of management authority, including investment discretion, trading authorization, and decision-making powers. Fee structures require detailed disclosure under SEC regulations, including management fees, performance fees, and any potential conflicts of interest. Fiduciary duty clauses are critical, as account managers must act in your best interest under federal law. The document should address regulatory compliance obligations, including reporting requirements, record-keeping duties, and adherence to anti-money laundering procedures. Risk disclosure provisions must explain potential losses, market risks, and limitations of the manager's authority. Termination clauses should specify how the relationship ends, asset transfer procedures, and final fee calculations.

Legal requirements in United States

Account Management Agreements must comply with the Securities Exchange Act of 1934 and Investment Advisers Act of 1940, which establish SEC oversight and registration requirements. The Gramm-Leach-Bliley Act mandates specific privacy protections and disclosure procedures for client financial information. Under the USA PATRIOT Act, agreements must include customer identification procedures and enhanced due diligence requirements. The Dodd-Frank Act imposes additional consumer protection measures and operational requirements for financial institutions. State laws may also apply, particularly for smaller investment advisers exempt from federal registration. The agreement must include required SEC disclosures, fee transparency provisions, and compliance with applicable FINRA rules for broker-dealers involved in account management services.