Financial Advisory Agreement Template for Philippines

The Financial Advisory Agreement is a crucial document used in the Philippine financial services industry to formalize the relationship between financial advisors and their clients. It is essential when providing professional financial advisory services, whether for individual wealth management, corporate finance, or institutional investment advice. The agreement must comply with Philippine regulations, including the Securities Regulation Code, BSP guidelines, and the Financial Products and Services Consumer Protection Act. It typically covers comprehensive details about service scope, fee structures, advisor obligations, client responsibilities, risk disclosures, and regulatory compliance requirements. This document is particularly important given the increasing complexity of financial markets and the need for clear documentation of advisory relationships in the Philippine context.

1. Parties: Identifies and provides full details of the Financial Advisor and the Client, including registration numbers, addresses, and authorized representatives

2. Background: Explains the context of the agreement, including the advisor's qualifications and the client's desire to receive financial advisory services

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Scope of Services: Detailed description of the financial advisory services to be provided, including specific inclusions and exclusions

5. Appointment and Authority: Formal appointment of the advisor and extent of their authority to act on behalf of the client

6. Advisor's Obligations: Comprehensive list of the advisor's duties, responsibilities, and standard of care

7. Client's Obligations: Client's responsibilities, including providing accurate information and required documentation

8. Fees and Payment Terms: Detailed breakdown of all fees, payment schedule, and payment methods

9. Confidentiality: Provisions for protecting confidential information and compliance with data privacy laws

10. Conflicts of Interest: Disclosure requirements and management of potential conflicts of interest

11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

12. Liability and Indemnification: Extent of advisor's liability and mutual indemnification provisions

13. Regulatory Compliance: Commitment to comply with relevant laws and regulations, including SEC requirements

14. Notices: Process and requirements for formal communications between parties

15. General Provisions: Standard clauses including governing law, entire agreement, amendments, and severability