Advisory Agreement Template for Switzerland

An Advisory Agreement outlines the professional relationship between an advisor and their client in Switzerland, typically covering investment guidance, wealth management, or business consulting services. It spells out what advice will be provided, how the advisor gets paid, and what each party must do to keep the relationship running smoothly.

Under Swiss financial regulations (particularly FINMA guidelines), these agreements must clearly state the advisor's duties, potential conflicts of interest, and risk disclosures. They protect both sides by setting clear expectations about confidentiality, reporting requirements, and when either party can end the relationship. Swiss law requires advisors to act in their clients' best interests and maintain detailed records of their recommendations.

Use an Advisory Agreement when engaging financial advisors, wealth managers, or business consultants in Switzerland to formally establish your professional relationship. This agreement becomes essential before sharing sensitive financial information or receiving personalized investment guidance, especially when dealing with regulated advisory services under FINMA oversight.

The timing is crucial: put this agreement in place before any substantive advisory work begins. It's particularly important when working with multiple advisors, managing complex portfolios, or navigating Swiss cross-border investment regulations. Many financial institutions require signed Advisory Agreements as part of their onboarding process to ensure compliance and clarify service scope.

• Advisory Board Agreement: For establishing formal relationships with board advisors who provide strategic guidance but don't serve as directors
• Sub Advisor Agreement: Used when primary advisors delegate specific tasks to specialized sub-advisors, common in complex wealth management
• Advisory Shares Agreement: Combines advisory services with equity compensation, typically for startups and growth companies
• Investment Consulting Agreement: Specifically for investment advice and portfolio management services under Swiss financial regulations
• Consultancy Agreement With Company: For broader business advisory services between companies, covering strategic and operational guidance

• Financial Advisors: Investment professionals and wealth managers who provide advice under FINMA regulations, using Advisory Agreements to define their services and responsibilities
• Corporate Clients: Companies seeking strategic guidance, investment advice, or specialized consulting services from qualified Swiss advisors
• Private Clients: High-net-worth individuals engaging advisors for personal wealth management and investment planning
• Legal Counsel: In-house or external lawyers who draft and review agreements to ensure compliance with Swiss financial regulations
• Compliance Officers: Internal specialists who monitor adherence to advisory obligations and maintain regulatory documentation

• Scope Definition: Document specific advisory services, deliverables, and any excluded activities
• Party Details: Gather full legal names, contact information, and registration numbers for all involved parties
• Fee Structure: Define compensation terms, payment schedules, and any performance-based elements
• Regulatory Compliance: Check FINMA requirements for your specific advisory services and incorporate mandatory disclosures
• Timeline Planning: Set clear start dates, review periods, and termination conditions
• Risk Management: Outline liability limits, confidentiality requirements, and dispute resolution procedures
• Documentation: Prepare supporting materials like service descriptions and fee schedules as annexes

• Party Identification: Complete legal names, addresses, and registration details of advisor and client
• Service Description: Detailed scope of advisory services, including any FINMA-regulated activities
• Compensation Terms: Fee structure, payment schedule, and any performance-based components
• Fiduciary Duties: Clear statement of advisor's obligations under Swiss law to act in client's best interest
• Confidentiality: Data protection measures compliant with Swiss banking secrecy laws
• Termination Rights: Conditions and process for ending the agreement
• Dispute Resolution: Swiss jurisdiction clause and applicable cantonal court
• Regulatory Compliance: References to relevant FINMA regulations and required disclosures

An Advisory Agreement differs significantly from an Advisor Agreement in several key aspects, though they may sound similar. While both involve professional guidance, their scope and legal implications under Swiss law are distinct.

• Regulatory Framework: Advisory Agreements specifically fall under FINMA regulations for financial advice and wealth management, while Advisor Agreements cover broader business consulting without financial oversight requirements
• Service Scope: Advisory Agreements focus on investment recommendations and portfolio management, whereas Advisor Agreements typically involve general business strategy and operational guidance
• Fiduciary Duties: Advisory Agreements carry stricter fiduciary obligations under Swiss banking laws, including detailed documentation of investment advice and risk disclosures
• Compensation Structure: Advisory Agreements often include performance-based fees and detailed fee schedules aligned with financial services regulations, while Advisor Agreements usually feature simpler fixed or time-based compensation