Break Away From The Pack

Key points in RIA client agreements 

On Behalf of | Apr 3, 2022 | RIA Formation |

As you set yourself up as a financial advisor on your own, your first step is to build out your client list. While doing this, it’s important to use contractual client agreements. These are binding documents that help to define the relationship for both of you. 

The following are not all of the points that the agreement needs to address, as these can be fairly comprehensive. But they do show you some of the key points you need to focus on and why the agreement is helpful.

Your authority over accounts

First of all, the agreement should give you authority to take certain financial actions on behalf of the client. Without this authority, you may not be able to act quickly enough to be effective. You need to know when you are allowed to move the client’s money for them and when you are not.

The terms of the agreement

This contract will also define the term for which the two of you want to work together. This may be indefinite, or it may be for a short period that is well defined. For instance, you may produce a client agreement that is only binding for the next year, and you can then both re-assess where you stand after that.

Your desire to work for the client’s best interests

This agreement may also tell the client what they should expect from your services and how you will always put their best interests first. This is a way for them to be confident that you are always working to help them accomplish their goals, rather than just trying to make money off of financial transactions.

It’s very important to get this entire agreement put together correctly from the very beginning, so you must know about all of the proper legal steps