Advisory Agreement Template for Singapore

An Advisory Agreement outlines the professional relationship between an advisor and their client in Singapore, spelling out how the advisor will provide guidance on investments, business strategies, or other specialized matters. These agreements are especially common in financial services, where they must comply with the Securities and Futures Act and Monetary Authority of Singapore regulations.

The agreement sets clear terms about fees, scope of services, confidentiality, and the advisor's duties. It protects both parties by defining what the advisor can and cannot do, listing specific deliverables, and explaining how either party can end the relationship. Most importantly, it helps prevent misunderstandings and ensures advisors meet their fiduciary responsibilities under local law.

Consider implementing an Advisory Agreement when engaging financial advisors, business consultants, or investment specialists in Singapore to provide ongoing professional guidance. This is especially crucial when seeking expertise for portfolio management, business strategy, or market analysis under MAS regulations.

The agreement becomes essential before sharing sensitive financial information, discussing long-term business plans, or receiving regulated investment advice. For startups and SMEs, it's particularly valuable when bringing on board advisors during funding rounds or expansion phases. Many companies also use these agreements when setting up advisory boards or engaging industry experts for specific projects.

• Advisory Board Agreement: For establishing formal relationships with multiple advisors serving on a company's advisory board, including collective decision-making protocols and group meeting requirements.
• Advisory Board Engagement Letter: A lighter, more concise format for appointing individual advisory board members, typically used for quick onboarding and simpler arrangements.
• Advisory Services Agreement: Comprehensive agreement for ongoing professional services, covering detailed scope, deliverables, and compensation structures for individual advisors or consulting firms.

• Business Advisors and Consultants: Professionals who provide strategic guidance, industry expertise, or specialized knowledge to companies, bound by the agreement's terms and deliverables.
• Companies and Startups: Organizations seeking external expertise, particularly during growth phases or strategic transitions, who draft and enforce Advisory Agreements.
• Legal Counsel: Corporate lawyers who review and customize these agreements to ensure MAS compliance and protect their clients' interests.
• Board Members: Directors who approve advisory appointments and oversee the relationship's governance structure.
• Compliance Officers: Internal staff who monitor adherence to agreement terms and regulatory requirements.

• Advisor Details: Gather full contact information, qualifications, and professional credentials of the advisor or advisory board members.
• Scope Definition: Clearly outline expected services, deliverables, meeting frequency, and specific responsibilities.
• Compensation Structure: Document fee arrangements, payment schedules, and any equity compensation or performance bonuses.
• Duration and Terms: Define the agreement period, renewal conditions, and termination clauses that comply with MAS guidelines.
• Confidentiality Needs: Identify sensitive information to be protected and required non-disclosure terms.
• Digital Documentation: Use our platform to generate a compliant agreement that includes all essential elements for Singapore.

• Parties and Roles: Full legal names, business registration numbers, and detailed description of advisor responsibilities.
• Service Scope: Specific advisory services, deliverables, and performance metrics aligned with MAS guidelines.
• Compensation Terms: Clear fee structure, payment schedule, and any performance-based incentives.
• Confidentiality Provisions: Data protection measures, non-disclosure obligations, and handling of sensitive information.
• Term and Termination: Agreement duration, renewal options, and conditions for early termination.
• Governing Law: Explicit reference to Singapore law and jurisdiction for dispute resolution.
• Execution Requirements: Proper signature blocks, witness provisions, and company seal requirements when applicable.

While an Advisory Agreement and an Agency Agreement might seem similar, they serve distinct purposes in Singapore's business landscape. An Advisory Agreement focuses on strategic guidance and expertise sharing, while an Agency Agreement creates a relationship where one party can legally act on behalf of another.

• Scope of Authority: Advisory Agreements limit the advisor to providing recommendations and guidance, while Agency Agreements grant actual authority to make decisions and bind the principal.
• Legal Liability: Advisors bear responsibility for the quality of their advice, but agents can create direct legal obligations for their principals.
• Regulatory Framework: Advisory Agreements often fall under MAS regulations for financial advice, while Agency Agreements are governed by Singapore's agency law principles.
• Duration and Structure: Advisory relationships typically have flexible, project-based terms, whereas agency relationships often involve ongoing operational authority and specific powers of representation.