Are electronic signatures legally binding?

Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures meet legal signature requirements when intent, consent, attribution, and record retention are satisfied.

When is notarization required?

Most client advisory agreements do not require notarization; however, certain authority forms, powers of attorney, or state-specific instruments may require a notary or witnesses—check state rules before execution.

What authentication level should I use?

Use email or SMS for routine client consent; require stronger authentication (KBA, multi-factor) for account-control authorizations or high-risk transactions to reduce repudiation risk.

Can I use e-signature for consumer-facing disclosures?

Yes, but for consumer-facing transactions you must provide the ESIGN consumer disclosure, obtain the consumer's consent to electronic delivery, and demonstrate ability to access records.

How should I store signed agreements?

Store signed records with tamper-evident controls, an auditable trail of actions, secure access controls, and retention rules that meet IRS, HIPAA, and other applicable requirements.

What if a signature is contested?

Preserve the full audit trail (timestamps, IP, authentication logs), provide copies to counsel, and follow internal dispute-resolution procedures; strong authentication and clear consent reduce contest risk.

Electronic Signature
Templates
Finance
Financial Advisors Agreement

Financial Advisors Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL ADVISORS AGREEMENT

This Financial Advisors Agreement (the Agreement) is entered into between:

Client Name: Advisor Name:

Effective Date: Agreement Term:

Recitals

WHEREAS, Client desires to engage Advisor to provide investment advisory and related financial planning services as set forth herein; and

WHEREAS, Advisor represents that it is duly qualified, licensed and able to provide such services and will act as a fiduciary when providing advisory services to Client;

Engagement; Scope of Services

Advisor shall provide the services described below (Services). Services may include investment advisory, portfolio management, financial planning, reporting, and other services as mutually agreed.

Scope of Services

Investment Authority: Discretionary Non-discretionary (advisor recommends, client approves)

Term and Termination

This Agreement will commence on the Effective Date and continue until terminated by either party upon written notice to the other party in accordance with the Notices provision below.

Termination Notice Period (days)

Compensation and Billing

Client shall pay Advisor fees as described in this section. Fees are exclusive of taxes and reimbursable expenses unless otherwise stated.

Fee Structure (select applicable)

Percentage of Assets Under Management Hourly Advisory Fee Fixed/Flat Fee

Fee Details

AUM Rate: Hourly Rate: Flat Fee:

Billing Frequency

Fee Schedule or Further Terms

Expenses and Reimbursement

Client will reimburse Advisor for reasonable out-of-pocket expenses incurred in the performance of Services, including custodial fees, travel (if pre-approved), and third-party service fees.

Reimbursable Expenses (describe limits/conditions)

Reporting and Records

Advisor will provide periodic reports detailing account activity, holdings, performance and fees. Frequency and delivery method are set forth below.

Reporting Frequency Delivery Method

Fiduciary Duty; Conflicts of Interest

Advisor acknowledges its fiduciary duty to act in the best interests of Client and to disclose material conflicts of interest. Advisor will disclose compensation arrangements and material relationships that could reasonably be expected to affect objectivity.

Conflicts Disclosed (summarize)

Confidentiality

Each party will maintain the confidentiality of the other's non-public information and will not disclose such information except as required by law, to perform the Services, or with prior written consent.

Limitation of Liability; Indemnification

Advisor's liability for direct damages arising from its negligence or willful misconduct shall be limited to the fees paid by Client to Advisor under this Agreement during the twelve (12) months preceding the event giving rise to the claim. Neither party shall be liable for consequential, punitive or special damages except for breaches involving willful misconduct or gross negligence.

Liability Cap (if different from standard)

Client agrees to indemnify and hold Advisor harmless from claims arising from Client's misrepresentations, failure to provide complete information, or Client-directed instructions.

Governing Law; Dispute Resolution

This Agreement will be governed by the laws of the state indicated below without regard to conflict-of-law principles. The parties agree to attempt to resolve disputes in good faith and, if unresolved, to submit disputes to binding arbitration unless otherwise agreed in writing.

Governing Law (State) Arbitration Agreement

Parties agree to binding arbitration for disputes arising under this Agreement

Notices

All notices under this Agreement shall be in writing and delivered to the addresses below by hand, certified mail, or electronic mail (with confirmation).

Client Contact Information Advisor Contact Information

Representations and Warranties

Client represents that Client has full legal capacity and authority to enter into this Agreement. Client will timely provide complete and accurate information necessary for Advisor to provide Services.

Client represents capacity and authority Client will provide accurate information

Miscellaneous

This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof and may be amended only in writing signed by both parties. If any provision is held invalid, the remainder will remain in full force and effect.

Additional Terms

Client:

By:

Date:

Advisor:

By:

Date:

What the Financial Advisors Agreement Is and when it applies

A Financial Advisors Agreement is a written contract that defines the relationship between a licensed financial advisor or advisory firm and a client. It sets the scope of services (investment advice, financial planning, portfolio management), compensation (fee-only, asset-based, commission), fiduciary responsibilities, term and termination, confidentiality and data handling, and dispute resolution. The agreement also documents regulatory commitments and disclosures required under U.S. law and industry rules, and clarifies deliverables, reporting cadence, and any custodial or third-party arrangements that affect how client assets are managed.

Why a clear agreement matters for advisors and clients

A well-drafted Financial Advisors Agreement reduces ambiguity about services, fees, and duties, provides evidence of consent and authorization, and helps satisfy regulatory expectations from bodies such as the SEC and FINRA while protecting both parties in disputes.

Who typically completes this agreement

The Financial Advisors Agreement is used by a range of professionals and clients when formalizing advisory services.

Registered investment advisers and RIAs creating client engagement terms and disclosure schedules.
Independent financial planners offering ongoing planning or one-time advisory services to individuals or families.
Broker-dealers onboarding advisory clients for fee-based or commission-based services.

Core components to include in a professional agreement

A comprehensive agreement groups obligations, fees, and protections so both parties understand expectations and legal responsibilities.

Scope of Services

Describe specific advisory tasks, investment strategy, reporting frequency, and any excluded services to avoid scope creep and misaligned expectations.

Compensation

Define fee method (AUM, hourly, flat, commission), billing schedule, fee calculation, and any third-party payments or referral arrangements.

Fiduciary Duty

State the advisor's duty of loyalty and care, conflicts-of-interest disclosures, and procedures for handling potential conflicts.

Term & Termination

Specify start date, renewal terms, early termination rights, notice periods, and any post-termination obligations such as final accounting.

Confidentiality

Outline data protection measures, permitted disclosures, and confidentiality duration, including handling of electronic records.

Authority & Consent

Detail signing authority, trading authorization, power to instruct custodians, and required client approvals for specific actions.

Step-by-step: completing and executing the agreement

Follow these sequential steps to create, review, authorize, and store a fully executed agreement.

01

Draft the agreement: Assemble terms, disclosures, and exhibits tailored to the engagement.
02

Internal review: Compliance and legal should verify fee language and conflict disclosures.
03

Client review: Send the draft to the client for questions and redlines.
04

Execute and retain: Collect signatures, confirm dates, and store signed copies securely.

How to configure an online signing workflow

Set up fields and authentication to match your compliance requirements and signer convenience.

Field	Configuration
Signature Field	Required; set signer role and validation rules
Date Field	Auto-populate on signature to ensure accurate execution date
Initials	Use for each page acknowledgment if required
Authentication	Choose email, SMS code, or KBA per risk profile

Digital signing essentials and platform compatibility

Choose a signing platform that supports the required authentication, audit trail, and file formats for regulatory compliance.

File Formats: PDF and DOCX supported
Authentication Options: Email, SMS, KBA
Integration Connections: CRM and custodial integrations

Typical electronic execution flow for the agreement

Electronic signing usually follows a repeatable sender-to-signer workflow with capture of identity and the audit trail.

Upload Document: Attach final agreement to the signing platform.
Place Fields: Add signature, date, and initial fields for each signer.
Set Authentication: Choose the signer verification level required.
Execute: Signer authenticates, reviews, and signs.

Key timing considerations and common deadlines

Observe timeline items that affect tax reporting, revocation windows, and retention obligations.

Effective Date and Term:

Agreement start and expiration determine when obligations and fees commence.

Client Revocation Windows:

Allow a reasonable review period before transactions begin.

Tax Reporting Dates:

Correct client data affects 1099 reporting and backup withholding triggers.

Record Retention Start:

Retention begins on the effective date or creation date of records.

Renewal Notices:

Provide notice periods per the contract to avoid auto-renewal disputes.

Milestone timeline from draft to stored record

Track these milestones to ensure a compliant execution and retention lifecycle for the agreement.

01

Draft Completion

Finalize terms and exhibits before compliance review.

02

Compliance Approval

Legal signs off on disclosures and fee language.

03

Client Execution

Obtain all required signatures and dating.

04

Archival

Store signed copy in secure records with access controls.

Common mistakes to avoid when preparing the agreement

Using vague fee descriptions that omit timing or calculation methods and lead to billing disputes.
Failing to disclose conflicts of interest or third-party referral fees required by regulators.
Mismatched names or signatures that delay account opening or trigger custodial re-execution.
Neglecting to set authentication or audit-trail requirements for electronic signatures in higher-risk engagements.

Consequences of errors or noncompliance

Regulatory Fines: SEC or FINRA penalties

Contract Disputes: Claims for fees or performance

Tax Withholding: Backup withholding triggered

Invalid Authorization: Trading authority rejected

Recordkeeping Violations: Failure to retain required documents

Reputational Risk: Client trust erosion

Essential information fields to capture

Advisor Name: Legal entity

Client Name: Legal name

Tax ID: TIN or SSN

Contact Info: Email and phone

Service Scope: Detailed services

Fee Terms: Amounts and schedule

Real-world examples of agreement use

These examples show how organizations standardize agreements to improve execution and compliance.

Optica Ventures LLC

Optica standardized advisory contracts to ensure consistent client expectations and reduce negotiations.

The interface was simplified for clients to sign remotely.
Brian Fitzgibbons, COO, said the approach made signing easy for both staff and customers while maintaining documented consent and a clean audit trail.

Tech Data

Tech Data centralized global agreement templates to reduce legal review cycles and speed onboarding.

Templates included mandatory compliance clauses.
Bob Dutkowsky, CEO, noted the change improved internal and external customer service while increasing speed to revenue.

eSignature vendor comparison for executing Financial Advisors Agreements

Compare common capability and pricing points for popular eSignature vendors. signNow is listed first per vendor order requirements.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no credit card required	Trial available	Trial available	Trial available	Trial available
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Practical tips for accurate and efficient completion

Adopt these practices to reduce rework, accelerate signing, and strengthen compliance posture.

Use standard templates

Maintain pre-approved templates with modular clauses to ensure consistent regulatory language and reduce legal review time.

Verify signer identity

Match names to government ID, use multi-factor authentication for high-risk transactions, and retain authentication logs.

Record version control

Keep a single authoritative copy, archive prior drafts, and log changes to avoid disputes over which text was signed.

Automate retention

Apply automated retention rules based on term and regulatory requirements to ensure compliance with recordkeeping obligations.

Frequently asked questions about Financial Advisors Agreements and e-signatures

Answers to common legal, technical, and procedural questions encountered when preparing, executing, and storing Financial Advisors Agreements.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, electronic signatures meet legal signature requirements when intent, consent, attribution, and record retention are satisfied.
When is notarization required?
Most client advisory agreements do not require notarization; however, certain authority forms, powers of attorney, or state-specific instruments may require a notary or witnesses—check state rules before execution.
What authentication level should I use?
Use email or SMS for routine client consent; require stronger authentication (KBA, multi-factor) for account-control authorizations or high-risk transactions to reduce repudiation risk.
Can I use e-signature for consumer-facing disclosures?
Yes, but for consumer-facing transactions you must provide the ESIGN consumer disclosure, obtain the consumer's consent to electronic delivery, and demonstrate ability to access records.
How should I store signed agreements?
Store signed records with tamper-evident controls, an auditable trail of actions, secure access controls, and retention rules that meet IRS, HIPAA, and other applicable requirements.
What if a signature is contested?
Preserve the full audit trail (timestamps, IP, authentication logs), provide copies to counsel, and follow internal dispute-resolution procedures; strong authentication and clear consent reduce contest risk.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now