Financial Advisor Agreement Template for Saudi Arabia

The Financial Advisor Agreement is essential for establishing professional financial advisory relationships in Saudi Arabia's regulated financial services sector. This document is used when a licensed financial advisor or institution agrees to provide financial advisory services to clients, whether corporate, institutional, or high-net-worth individuals. The agreement must comply with Capital Market Authority (CMA) regulations and includes detailed provisions for service scope, regulatory compliance, risk management, and fee structures. It's particularly important in the Saudi Arabian context due to specific regulatory requirements, including potential Shariah compliance considerations and local market regulations. The document serves as a comprehensive framework for protecting both advisor and client interests while ensuring regulatory compliance in the Saudi financial markets.

1. Parties: Identification of the Financial Advisor and the Client, including their legal status and registration details

2. Background: Context of the agreement and brief description of the parties' intention to enter into a financial advisory relationship

3. Definitions: Definitions of key terms used throughout the agreement, including regulatory terms as per CMA requirements

4. Appointment and Scope of Services: Formal appointment of the advisor and detailed description of financial advisory services to be provided

5. Regulatory Status and Compliance: Confirmation of advisor's regulatory status and compliance with CMA requirements

6. Duties and Responsibilities: Detailed obligations of the Financial Advisor, including standard of care and regulatory duties

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

8. Fees and Payment Terms: Detailed fee structure, payment schedule, and expenses

9. Representations and Warranties: Standard and regulatory-specific representations from both parties

10. Confidentiality: Confidentiality obligations and data protection requirements

11. Conflicts of Interest: Procedures for identifying and managing conflicts of interest

12. Term and Termination: Duration of agreement and termination provisions

13. Liability and Indemnification: Limitation of liability and mutual indemnification provisions

14. General Provisions: Standard legal provisions including notices, amendments, assignment, and governing law