Accord et arrangement d'enclenchement pour des services consultatifs complets
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1. Parties to this Agreement: I ___________________ (Advisor’s name) offer my services to the above named client to act as their advisor, and to provide financial advice after reviewing my client’s financial affairs
2. Overview of Engagement: Under the terms of this engagement, the advisor will provide advice in the areas checked below.
- Investment Management Strategy – Develop a personal investment policy statement that identifies the client’s target asset allocation and investment objectives and the action steps needed to implement the strategy.
- Retirement Planning Strategy – Identify changes the client needs to make in their current behaviour that will allow the client to achieve their personal retirement goals and objectives.
- Education Planning Strategy – Identify what the client needs to do to achieve their educational funding objectives.
- Needs in the Event of Death Strategy – Review the client’s situation in the event of death and develop a strategy that will ensure their family is able to retain the lifestyle they are accustomed to.
- Needs in the Event of Disability Strategy – Review the client’s situation in the event of disability and develop a strategy to ensue that their goals and objectives are achieved.
- Estate Planning Strategy – Perform a review of the estate situation to ensure that the client’s wishes are carried out in the event of death. Also ensure that final estate costs and taxes are minimized.
The specific services to be provided under each of these services are outlined in more detail in Appendix A of this agreement.
I ______________ (client name) understand that the calculations, projections, advice and recommendations provided will be based on the information submitted by me and on assumptions, which are in accordance with the Canadian Financial Planning Practice Standards. I understand that these will be projections only and that actual results can and will vary depending on a number of factors and future events.
3. Terms of Continuous Service: Financial planning is an ongoing process and that, after completion of the work covered by this agreement, it will require implementation, ongoing monitoring, and regular review. The client understands that in order to achieve their personal goals and objectives, it is important that the advice and recommendations be implemented. Not doing so will result in the client not being able to achieve the stated goals and objectives.
4. Responsibilities: The success of our relationship will be dependent upon each of us fulfilling our responsibilities and being accountable to one another. The following defines these aspects of our relationship.
Your responsibilities as client are to:
- Provide your advisor with the initial information required to complete the work identified under the terms of this agreement.
- Keep your advisor apprised of any relevant information concerning your personal financial affairs that may have an impact on your situation.
- Make decisions and act on advice rendered, or to seek alternative advice from your advisor that will still allow you to achieve your objectives.
Your Advisor’s responsibilities are to:
- Tell you what information is required to complete the work identified under the terms of this agreement and what information is required to maintain the ongoing planning activities.
- Review your financial affairs and provide professional advice in the areas covered by this agreement.
- At all times exercise reasonable professional judgement and act in your best interest.
- Provide proactive co-ordination of services for implementing the action plan.
- Complete the specific services as outlined on Appendix A that is attached.
5. Implementation Process and Disclosure: During the term of this agreement the advisor will provide services to co-ordinate the implementation of the action plan. In implementing any action plan steps, at the client’s discretion; the client may acquire insurance products and investments through the advisor where they are legally allowed to do so. In such transactions, the nature of any commissions, brokerage fees, or placement compensation received, if any, will be fully disclosed.
6. Termination and Variation: Either the client or advisor may terminate this agreement at any time by giving at least one month's written notice by ordinary mail to the other at their last known mailing address. Termination will not relieve the client of any outstanding obligations or fees payable until paid in full.
7. Engagements for Additional Services: This agreement covers the specific services identified under the “Overview of Engagement”. At any time the client may engage the advisor under separate agreement for additional services, the terms of which will be defined in the agreement for these additional services.
8. Third Party Professionals: During the process of providing financial advice it may from time to time be prudent to consult with other third party professionals such as a lawyer or accountant. In the event that such a consultation is deemed necessary, the client will be advised and requested to approve any such consultation. At that time the client will also confirm that they are willing to accept responsibility for any professional fees incurred for this purpose. No such consultations will take place without the client’s express approval and agreement.
9. Confidentiality: During the course of the relationship, it will be necessary for the client to provide a variety of very personal financial information. The quality of the work that is done for me will be dependent on this personal information being accurate and complete. The advisor commits that all information will be held in strictest confidence and that no information shall be divulged about the client’s personal situation to any outside organization or government agency without my consent, unless as directed by law.
10. Conflict of Interest: During the advisor-client relationship there may be occasions where a conflict of interest may occur. The advisor commits to disclosing any such conflicts if and when they occur, whether they are conflicts of interest in reality or a matter of perception.
11. Acknowledgements: The client acknowledges that the advisor has disclosed the following material facts.
Securities Licensing – My advisor is licensed through the __________________ Securities Commission for the sale of _____________________ and related securities products. This licence is sponsored through __________________ which is the advisor’s dealer.
Insurance Licensing – The advisor is licensed through the Financial Services Commission of _______________ for the sale of Life, Disability and related insurance products. This licensing also covers the sale of Segregated Funds.
Business Names – The advisor’s firm ________________________ is a registered style name of the dealer, ________________________________. The advisor conducts tax services through a related company called _________________ Tax Services.
Professional Memberships – The advisor is currently licensed by the Financial Planners Standards Council of Canada to use the Certified Financial Planner designation, and is currently a member of the Financial Advisors Association of Canada (Advocis) in good standing.
Professional Liability Insurance – The advisor maintains professional liability insurance coverage in the amount of $2,000,000 through ___________________________ Insurance Company.
12. Client Redress: If, throughout the professional relationship the client has any complaints or disputes that cannot be resolved directly with the advisor, the client understands that there are a number of options to be heard and seek resolution. The advisor agrees to make the client aware of what the complaint process is and who to contact.
13. Advisor Compensation
- Advisor Compensation Disclosure (Fee Only): The advisor is compensated through fees as determined based on the time and complexity of the planning needs. Implementation of any recommendations may be facilitated through the advisor but will be done through third parties who are duly licensed for the products being acquired. The advisor will in no way be compensated over and above the fees as identified in this agreement for the placement of any such financial products.
- Advisor Compensation Disclosure (Fee Plus Commission): The advisor is compensated through fees based on the time and complexity of the planning needs and will also receive compensation through commissions, finders fees and or brokerage fees. These additional revenues will be received as a result of the placement of investment, insurance and other financial products as part of the implementation of the action plan.
- Advisor Compensation Disclosure (Fee-offset): The advisor is compensated through a fee-offset arrangement. The fees will be determined based on the time and complexity of the planning needs. These fees will be reduced to reflect any commissions or referral fees received for transactions undertaken as a part of the implementation of the action plan. More specifically, the advisor will calculate how much annual fee revenue is required to carry out the engagement and ongoing continuous service, and deduct from this the estimated annual compensation they expected in the form of commissions or referral fees, in order to arrive at a net amount payable annually. The fee-offset calculation only includes fees earned on investment assets.
- Advisor Compensation Disclosure (Commission Only): The advisor is compensated through commissions, finder’s fees and or brokerage fees. These revenues will be received as a result of the placement of investment, insurance and other financial products as part of the implementation of the action plan.
- Advisor Compensation Disclosure (Salary): The advisor is compensated totally through salary and will in no way be compensated over and above their salary for the placement of any financial products.
- Advisor Compensation Disclosure (Salary plus Commission): The advisor is compensated through salary and will also receive compensation through commissions, finder’s fees and or brokerage fees. These additional revenues will be received as a result of the placement of investment, insurance and other financial products as part of the implementation of the action plan.
14. Fees: A fee of $_________ will be payable for the services covered by this agreement. This fee will be payable 50% due immediately upon execution of this agreement and 50% due upon presentation of the plan.
Agreements are particularly critical in relationships as sensitive and potentially intimate as those involving personal financial affairs. Accordingly, it is necessary and appropriate for all of us to clearly understand the nature of our mutual commitments. That is the purpose of this agreement.
Signed this ____________ day of ________________________ 200___.
I understand the nature of this agreement and agree to its terms.