Advisory Agreement Template for United States

An Advisory Agreement outlines the terms between an advisor and a client receiving professional guidance or consulting services in the Philippines. This legal contract spells out what advice or expertise the advisor will provide, payment terms, and how long the relationship will last.

Common in sectors like finance, management, and real estate, these agreements protect both parties by setting clear expectations and boundaries. They typically include confidentiality clauses, scope of services, and compliance requirements with Philippine Securities and Exchange Commission regulations, especially when dealing with investment advice or corporate governance matters.

Consider using an Advisory Agreement when bringing in external expertise for your business in the Philippines. This agreement becomes essential before starting consulting relationships, especially for strategic planning, financial guidance, or technical advisory services.

The timing is crucial when seeking investment advice, implementing major organizational changes, or launching new business ventures. Philippine businesses often need these agreements when engaging advisors for SEC compliance, corporate restructuring, or market expansion projects. It's particularly important to have one in place before sharing sensitive company information or when the advisor's role impacts critical business decisions.

• Advisory Engagement Letter: Basic format outlining scope and terms of advisory services, commonly used for short-term consulting.
• Sub Advisor Agreement: Used when primary advisors delegate responsibilities to specialized consultants.
• Advisory Board Contract: Formal agreement for ongoing board-level advisory roles and governance responsibilities.
• Advisory Board Consulting Agreement: Detailed contract combining advisory board duties with specific consulting deliverables.
• Advisory Shares Agreement: Equity-based arrangement where advisors receive company shares as compensation.

• Business Owners: Engage advisors for strategic guidance, financial planning, or operational improvements in their Philippine companies.
• Professional Advisors: Consultants, industry experts, and business strategists who provide specialized knowledge and services.
• Corporate Legal Teams: Draft and review agreements to ensure compliance with SEC regulations and protect company interests.
• Board Members: Often involved in approving advisory relationships for major corporate decisions or restructuring.
• Investment Firms: Seek advisory services for market analysis, due diligence, and portfolio management strategies.
• Startup Founders: Partner with advisors for guidance on growth, funding, and market entry strategies.

• Advisor Details: Gather full credentials, qualifications, and professional certifications of the advisor.
• Service Scope: Define specific deliverables, timelines, and expected outcomes of the advisory relationship.
• Compensation Terms: Document fee structure, payment schedule, and any performance-based incentives.
• Duration: Specify the agreement's term, renewal conditions, and termination clauses.
• Confidentiality: List sensitive information to be protected and non-disclosure requirements.
• Legal Requirements: Ensure compliance with Philippine SEC regulations and relevant industry standards.
• Documentation: Our platform generates customized agreements incorporating all these elements accurately.

• Parties and Roles: Full legal names, addresses, and clear definition of advisor and client responsibilities.
• Scope of Services: Detailed description of advisory services, deliverables, and performance metrics.
• Compensation Terms: Fee structure, payment schedule, and reimbursement policies following Philippine tax laws.
• Confidentiality: Data protection measures aligned with Philippine privacy regulations.
• Term and Termination: Agreement duration, renewal options, and conditions for early termination.
• Dispute Resolution: Clear arbitration or mediation procedures under Philippine jurisdiction.
• Compliance Statement: Reference to relevant SEC regulations and industry-specific requirements.
• Signature Block: Proper execution format for Philippine legal documents.

An Advisory Agreement differs significantly from an Agency Agreement in several key aspects, though both involve professional services. Let's explore the main distinctions:

• Scope of Authority: Advisory Agreements limit the professional to providing guidance and recommendations, while Agency Agreements grant authority to act on behalf of the principal and make binding decisions.
• Legal Liability: Advisors typically face lower liability risks as they only offer advice, whereas agents have fiduciary duties and can legally bind their principals.
• Duration and Commitment: Advisory relationships are often project-based or periodic, while agency relationships tend to be ongoing with deeper integration into business operations.
• Regulatory Requirements: Agency Agreements in the Philippines often require specific licenses and registrations, particularly in real estate or securities. Advisory Agreements generally have fewer regulatory hurdles.