Advisory Agreement Template for the UK
Generate a bespoke document
What is an Advisory Agreement?
An Advisory Agreement sets out the terms when someone provides expert guidance or consulting services to a business or individual. It spells out what advice the advisor will give, how they'll deliver it, and what they'll charge - making the relationship clear for both sides.
Under English law, these agreements protect both parties by defining important details like confidentiality, conflicts of interest, and liability limits. They're commonly used when businesses hire strategic consultants, financial advisors, or industry experts - and they're especially important in regulated sectors like financial services where the FCA requires clear documentation of advisory relationships.
Sample clauses: standard wording in a UK advisory agreement
5. Fees, Expenses and Status
5.1 The Company shall pay the Adviser a fee of [£ amount] per [day/month] for the Services, invoiced [monthly in arrears] and payable within [30] days of receipt of a valid invoice, together with VAT if properly chargeable.
5.2 The Company shall reimburse reasonable expenses which are wholly and necessarily incurred in performing the Services, provided they are approved in advance in writing and supported by receipts.
5.3 The Adviser is an independent contractor and nothing in this Agreement creates a contract of employment, a partnership or a relationship of agency between the parties.
5.4 The Adviser shall indemnify the Company against any income tax, National Insurance contributions, penalties and interest for which the Company is held liable in connection with the Services, save where that liability arises from the Company's own determination under Chapter 10 of Part 2 of the Income Tax (Earnings and Pensions) Act 2003.
8. Conflicts of Interest
8.1 The Adviser warrants that, as at the date of this Agreement, the Adviser has disclosed in writing every engagement, directorship, shareholding or other interest which does or may conflict with the Services.
8.2 During the Term the Adviser shall not advise, or hold a material interest in, any business which competes with the Company in [the United Kingdom] in relation to [specify business area], without the Company's prior written consent.
8.3 The Adviser shall notify the Company in writing within [5] business days of becoming aware of any actual or potential conflict arising after the date of this Agreement, and shall not continue to provide the affected Services until the parties have agreed in writing how the conflict is to be managed.
8.4 If a conflict cannot be managed to the Company's reasonable satisfaction, the Company may terminate this Agreement on written notice, and the Adviser shall be entitled to fees for Services properly performed up to the termination date.
Illustrative extract showing typical drafting under the law of England and Wales. Documents generated with GenieAI are tailored to your rules, standards and context.
Frequently Asked Questions
When should you use an Advisory Agreement?
Put an Advisory Agreement in place before accepting guidance from business consultants, financial experts, or industry specialists. This becomes essential when bringing in external expertise for strategic planning, market expansion, or specialized projects where you need professional advice but don't want a full-time employee.
The agreement proves particularly valuable in regulated sectors like financial services, where the FCA requires clear documentation of advisory relationships. It's also crucial when sharing sensitive business information, planning major transactions, or seeking ongoing expert guidance where you need to define exact responsibilities, deliverables, and payment terms upfront.
What are the different types of Advisory Agreement?
- Advisory Board Agreement: For formal advisory boards with multiple members providing strategic guidance and governance oversight
- Startup Advisor Agreement: Tailored for early-stage companies, often including equity compensation and flexible terms
- Advisory Board Confidentiality Agreement: Focuses specifically on protecting sensitive information shared with advisors
- Advisory Shares Agreement: Details equity-based compensation for advisors, including vesting schedules
- Advisory Engagement Letter: A lighter-touch format for one-off or short-term advisory relationships
Who should typically use an Advisory Agreement?
- Business Owners & CEOs: Engage advisors to guide strategic decisions, often seeking industry expertise or specialist knowledge
- Professional Advisors: Include business consultants, industry experts, and strategic advisors who provide guidance for compensation
- Startup Founders: Bring in experienced mentors and advisors, often offering equity in exchange for expertise
- Legal Teams: Draft and review Advisory Agreements to ensure compliance with UK regulations and protect both parties
- Board Members: Oversee and approve advisory relationships, particularly for significant engagements or regulated sectors
- Company Secretaries: Maintain records of advisory relationships and ensure proper documentation
How do you write an Advisory Agreement?
- Advisor Details: Gather full contact information, qualifications, and relevant experience of the advisor
- Scope Definition: List specific services, deliverables, and expected outcomes from the advisory relationship
- Time Commitment: Define frequency of meetings, availability expectations, and duration of the engagement
- Compensation Terms: Decide on fee structure, payment schedule, and any equity arrangements
- Confidentiality Needs: Identify sensitive information that will be shared during the engagement
- Term and Exit: Set clear start date, duration, and conditions for terminating the agreement
- Compliance Check: Review any industry-specific regulations, especially for financial services under FCA rules
What should be included in an Advisory Agreement?
- Parties & Roles: Full legal names and addresses of advisor and company, with clear description of services
- Term & Termination: Duration of agreement, notice periods, and grounds for early termination
- Compensation: Payment terms, expenses policy, and any equity arrangements with vesting schedules
- Confidentiality: Scope of protected information and duration of confidentiality obligations
- Intellectual Property: Ownership of work product and pre-existing IP rights
- Non-Compete: Restrictions on working with competitors during and after the engagement
- Governing Law: Explicit choice of English law and jurisdiction for dispute resolution
- Data Protection: GDPR compliance and data handling procedures
What's the difference between an Advisory Agreement and an Agency Agreement?
An Advisory Agreement differs significantly from an Agency Agreement, though both involve external parties working with a business. Here are the key distinctions:
- Authority Level: Advisory Agreements grant no power to make decisions or bind the company, while Agency Agreements explicitly authorize the agent to act on behalf of the business
- Legal Liability: Advisors provide recommendations but bear limited liability for business outcomes, whereas agents can create legal obligations for the company
- Compensation Structure: Advisory roles typically involve fixed fees or equity compensation, while agency relationships often include commission-based payments tied to specific transactions
- Duration and Commitment: Advisory relationships tend to be ongoing and strategic, focusing on guidance and expertise, while agency relationships are often transaction-specific or tied to particular business activities
- Regulatory Requirements: Agency Agreements face stricter regulatory oversight, especially in financial services, while Advisory Agreements have more flexibility in structure and terms
Why Trust GenieAI?
- 244,337 businesses have trusted GenieAI to draft 365,360 legal documents (and growing).
- Across every document GenieAI reviews, the median document carries 4 high-priority risks.
- Vague or ambiguous wording is the single most common problem, at 14.6% of all issues raised.
- GenieAI reviews a full contract, clause by clause, in typically under two minutes.
Source: GenieAI internal data Updated 6 hours ago
About the Advisory Agreement
- Advisor Details: Gather full contact information, qualifications, and relevant experience of the advisor
- Scope Definition: List specific services, deliverables, and expected outcomes from the advisory relationship
- Time Commitment: Define frequency of meetings, availability expectations, and duration of the engagement
- Compensation Terms: Decide on fee structure, payment schedule, and any equity arrangements
- Confidentiality Needs: Identify sensitive information that will be shared during the engagement
- Term and Exit: Set clear start date, duration, and conditions for terminating the agreement
- Compliance Check: Review any industry-specific regulations, especially for financial services under FCA rules
Explore 208,390+ legal templates
Explore 208,390+ legal templates
All Advisory Agreement templates
Genie's Security Promise
Genie is the safest place to draft. Here's how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie's AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it