As an independent financial adviser (IFA), it is essential to have a client agreement in place before commencing any business with your clients. The IFA client agreement outlines the terms and conditions of the relationship between you and your client, ensuring that both parties understand their roles, obligations, and responsibilities.
The IFA client agreement is a crucial document, and the following factors should be considered when drafting it:
1. Introduction
The introduction should provide a brief overview of your business and the services that you offer. It should also outline the purpose of the client agreement and state the intentions of both parties.
2. Services
This section should detail the services that you will provide to your client, including any limitations or restrictions. It should also outline the process of how you will deliver these services and any fees or charges attached.
3. Obligations and Responsibilities
The obligations and responsibilities of both parties should be clearly outlined, and any expectations should be detailed. This section should also provide information on how complaints and disputes will be resolved.
4. Confidentiality
Confidentiality is paramount in the financial industry, and this section should detail the measures you will take to protect your client`s personal and financial information.
5. Termination
The termination section should outline the circumstances under which the agreement can be terminated, any notice periods required, and the consequences of termination.
6. Governing Law
The governing law section should specify which laws govern the agreement and which jurisdiction would hear any disputes.
7. Signatures
The agreement should be signed by both parties to indicate their agreement to the terms and conditions laid out in the document.
In conclusion, an IFA client agreement is an essential document that protects both parties and outlines the terms and conditions of their relationship. It provides clarity and transparency, ensuring that everyone understands their roles and responsibilities. As an IFA, it is crucial to have a solid client agreement in place before commencing any business with your clients.
