Can this be signed electronically?

Yes. Electronic signatures that meet the ESIGN Act (15 U.S.C. §7001) and applicable state UETA or ESRA requirements are valid for most fund authorization forms, provided intent, consent, attribution, and record retention are satisfied.

When is a notary required?

A notary is required when state law or a counterparty (custodian) demands a notarized authorization; check custodian instructions and state notarization rules before execution.

What authentication should I use for signers?

Use at least email plus SMS or SSO for low-risk transactions; for higher assurance, use multi-factor or knowledge-based methods and retain authentication evidence in the audit trail.

How do I correct an error after signing?

Do not alter the signed record. Prepare an amendment or rescission executed by the same parties and reference the original document to maintain an auditable chain.

Which records must be retained?

Retain signed forms according to applicable rules: IRS (3 years minimum, IRC §6501(a)), HIPAA (6 years, 45 CFR §164.530(j)) and longer if state law or fund policy requires.

What if the advisor's name doesn't match records?

Resolve mismatches before submitting to custodians. Provide a corporate resolution or registration documents to reconcile naming differences and avoid account access delays.

Electronic Signature
Templates
Finance
Financial Advisors on Funds

Financial Advisors on Funds

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

FINANCIAL ADVISORY AGREEMENT — ADVISORS ON FUNDS

Parties and Contact Information

Fund / Client Name Fund Manager / Client Representative Fund Address for Notices Advisor Name / Firm Advisor Principal Office

Effective Date: Term (months):

Recitals

This Financial Advisory Agreement (Agreement) is entered into between the Fund / Client identified above (Fund) and the Advisor identified above (Advisor). The Fund desires to obtain financial advisory services in respect of the Fund's investment activities, fundraising, structuring, and capital markets relations. The Advisor represents that it has the expertise and authorizations to provide such services under the terms set forth below.

Scope of Advisory Services

Advisor shall provide advisory services to the Fund as agreed in writing and may include, as applicable: investment strategy consulting; due diligence on potential investments; assistance with capital raising and placement activities; preparation and review of offering materials; ongoing portfolio monitoring and periodic reporting. Advisor shall perform services with the care, skill and diligence ordinarily exercised by financial advisors engaged in similar activities.

Detailed Scope Description

Compensation and Fee Schedule

The Fund shall pay Advisor compensation as set forth below. All fees shall be payable in accordance with the invoice and payment terms specified herein. Any taxes required by applicable law shall be borne by the party required to pay them.

Description	Rate / Amount
Advisory Retainer (monthly)
Success Fee (upon closing)
Performance Fee (subject to hurdle)
Expenses (reimbursable)

Invoices shall be submitted monthly unless otherwise agreed. Payment is due within days of invoice. Late payments shall accrue interest at the lesser of 1.5% per month or the maximum rate permitted by law.

Accepted payment methods: ACH/Wire Check Other (specify below)

Advisor Duties; Compliance

Advisor shall comply with applicable laws, rules and regulations in the performance of its duties, including registration and licensing requirements where applicable. Advisor shall disclose in writing any material conflicts of interest that could impair its independence or objectivity. Nothing in this Agreement shall require Advisor to take any action that would cause it to violate applicable law.

Confidentiality and Use of Information

Each party shall maintain as confidential all non-public information received from the other party in connection with this Agreement, and shall not disclose such information except to its personnel and professional advisors who have a need to know and are bound by confidentiality obligations at least as protective as those in this Agreement. Confidentiality obligations shall not apply to information that is or becomes public through no fault of the recipient or is required to be disclosed by law.

Representations; Warranties

Advisor represents and warrants that it has the experience, qualifications, and regulatory authority to provide the services contemplated hereby. Fund represents and warrants that it has the authority to engage Advisor and to perform its obligations hereunder. Each party warrants that execution and performance of this Agreement will not violate any material agreement or law binding on that party.

Indemnification and Limitation of Liability

To the fullest extent permitted by law, Fund shall indemnify, defend and hold Advisor harmless from and against losses arising out of Fund's breach of this Agreement, Fund's negligence or willful misconduct, and third-party claims attributable to Fund's actions. Advisor's liability for damages under or related to this Agreement shall be limited to direct damages and shall not include consequential, incidental or punitive damages, except for liability arising from fraud or willful misconduct.

Term, Termination and Effect of Termination

This Agreement shall commence on the Effective Date and continue for the Term specified above unless earlier terminated as set forth below. Either party may terminate this Agreement upon days' prior written notice. Termination for cause may be effective immediately upon written notice if a material breach is not cured within a commercially reasonable period.

Upon termination, Advisor shall be entitled to all accrued but unpaid fees and reimbursable expenses through the effective date of termination. Provisions intended to survive termination include confidentiality, indemnification, and limitation of liability clauses.

Notices

All notices under this Agreement shall be in writing and shall be delivered to the addresses set forth below (or to such other address as a party designates in writing).

Notices to Fund Notices to Advisor

Miscellaneous

This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior understandings. No amendment shall be effective unless in a writing signed by both parties. If any provision of this Agreement is held invalid, the remaining provisions shall continue in full force and effect. This Agreement shall be governed by the substantive laws of the jurisdiction designated below.

Governing Law (State/Country) Additional Terms or Special Instructions

Acknowledgment and Certifications

Each party certifies that the person signing on its behalf has full power and authority to enter into this Agreement and to bind such party. Advisor certifies that, to the best of its knowledge, no regulatory action or proceeding is pending that would prevent Advisor’s performance under this Agreement, except as disclosed in writing to the Fund.

Advisor

Printed Name:

By:

Date:

Fund / Client

Printed Name:

By:

Date:

What the Financial Advisors on Funds document covers

A Financial Advisors on Funds form documents the appointment, authority, disclosures, and reporting obligations of one or more financial advisors who manage or advise a pooled investment vehicle or separate managed account. It records advisor identity, scope of authority (investment mandate, trading limits, fee schedule), confidentiality and compliance obligations, and signature blocks for parties. The form also provides fields for tax identifiers, contact details, effective dates, and termination provisions so custodians, administrators, and regulators can verify who is authorized to act on behalf of the fund.

Why this document matters for fund governance and compliance

Clear appointment and authority language reduces operational risk, supports auditability, and helps ensure accurate tax and regulatory reporting. The document establishes who may direct investments, receive distributions, and communicate with custodians, which is essential for ERISA, SEC, and state-level reporting and oversight.

Who typically completes and relies on this form

Use the completed form as part of onboarding, annual reviews, and when changing advisor arrangements to maintain an auditable record.

Fund Sponsors and GPs — Confirm advisor appointment, fee terms, and reporting obligations for the fund.
Registered Investment Advisors — Provide authority, KYC details, and compliance attestations for trades and distributions.
Custodians and Administrators — Use the form to authorize account access and to update service provider records.

Core elements to include in a professional Financial Advisors on Funds form

A robust form combines identity and authority details with compliance, reporting, and termination mechanics so administrators and auditors can verify roles and obligations.

Advisor Appointment

Name the advisor organization and authorized representatives, include titles and capacity in which they act, and record company registration numbers.

Authority Scope

Describe permitted activities (investment discretion, trading limits, delegation rights), any prohibited investments, and approval thresholds.

Fee Schedule

Specify fees, performance criteria, calculation methods, payment timing, and any expense reimbursement rules.

Compliance Representations

Require advisor attestations on licensing, AML/KYC procedures, regulatory standing, and any conflicts of interest disclosures.

Reporting Requirements

Define frequency and format for portfolio reports, custodial instructions, trade confirmations, and tax information delivery.

Termination & Transfer

Set notice periods, transition responsibilities, document handover, and any continuing indemnities or confidentiality obligations.

Essential data fields to collect

Advisor Name: Full legal name as on registration

Fund Name: Registered fund legal name

Tax ID: TIN or EIN for tax reporting

Account ID: Custodian account or CUSIP

Contact Details: Street address, phone, and email

Effective Date: Enter date as MM/DD/YYYY format

Step-by-step: completing the form from start to finish

Follow these steps to complete and validate the Financial Advisors on Funds form before submitting to custodians or administrators.

01

Prepare documents: Gather advisor registration, EIN, and identification documents.
02

Fill fields: Enter all required data exactly as in legal records.
03

Review compliance: Confirm AML/OFAC checks and conflict disclosures.
04

Sign and submit: Obtain necessary signatures and deliver to custodian.

Configuring an online completion workflow

Set up a digital workflow that assigns fields, enforces required inputs, and captures an audit trail for all signers.

Field	Configuration
Required Fields	Mark advisor name, EIN, authority scope, and signatures as mandatory
Signer Order	Define whether advisor or fund sponsor signs first
Authentication	Use email, SMS code, or stronger verification as needed
Audit Trail	Capture timestamp, IP, and signer actions automatically

Where to send the completed form and who receives it

Identify primary recipients and secondary recipients to ensure distribution aligns with custody, administration, and compliance needs.

Custodian: Primary recipient to update account authorizations
Fund Administrator: Retains for bookkeeping and investor reporting
Compliance File: Maintain a copy for AML/KYC and audits
Advisor Records: Advisor keeps a signed copy for enforcement

Delivering and signing the form electronically

Choose a solution that meets ESIGN/UETA requirements and any industry-specific rules such as HIPAA or 21 CFR Part 11 when applicable.

Signed Record: Platform must create an auditable certificate and timestamp
Authentication Options: Support for email, SMS code, KBA, or SSO
File Formats: Exportable to PDF, DOCX, or compliant archive formats

Key deadlines and reporting timelines to track

Certain dates affect tax reporting, fund accounting periods, and contractual obligations; record them clearly on the form and in fund calendars.

Execution Date:

Effective date of authority and obligations

Quarterly Reporting:

Standard schedule for performance and holdings reports

Tax Reporting Cutoffs:

Align advisor data with 1099 and fund tax timelines

Notice Periods:

Termination or amendment notice specified in agreement

Record Retention Trigger:

Start retention clocks at termination or final report

Common mistakes when preparing this form

Using informal or abbreviated names that do not match registration records, causing custodians to reject authorization and delay account access.
Leaving authority limits vague (for example, 'manage investments') without specifying asset classes, risk limits, or approval thresholds.
Failing to update the form after personnel changes, which can leave unqualified or unauthorized individuals listed as signatories.
Skipping attestations for AML/OFAC checks or licensing status, creating gaps in compliance and exposing the fund to regulatory risk.

Consequences of incomplete or incorrect filings

Tax Penalties: $60–$330+ per incorrect 1099

Operational Delay: Account access and transfers may be blocked

Regulatory Risk: Fines or enforcement for AML/registration failures

Backup Withholding: 24% withheld for missing/incorrect TIN

Contract Disputes: Ambiguous authority leads to litigation risk

Reputational Harm: Investor confidence may decline

Typical eSignature vendor comparison for fund document workflows

Compare common plan and compliance criteria when selecting an eSignature provider for sensitive fund documents; signNow is shown first in the table below.

	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	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Limited
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-world examples of advisor onboarding and authorization

These examples show how organizations used an advisor authorization form to speed onboarding and maintain compliance.

Optica Ventures — COO

Optica standardized its advisor form to speed investor onboarding

Reduced manual back-and-forth with custodians by prepopulating fields
"The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers." — Brian Fitzgibbons, COO

Tech Data — CEO

Tech Data centralized signatures on a single form to streamline approvals

Enabled faster revenue recognition through quicker account updates
"Tech Data uses airSlate SignNow to improve our internal and external customer service while increasing our speed to revenue." — Bob Dutkowsky, CEO

Frequently asked questions and troubleshooting tips

Answers to common questions about completing, signing, and storing Financial Advisors on Funds documents, focusing on legal validity and practical issues.

Need help? Contact support

Can this be signed electronically?
Yes. Electronic signatures that meet the ESIGN Act (15 U.S.C. §7001) and applicable state UETA or ESRA requirements are valid for most fund authorization forms, provided intent, consent, attribution, and record retention are satisfied.
When is a notary required?
A notary is required when state law or a counterparty (custodian) demands a notarized authorization; check custodian instructions and state notarization rules before execution.
What authentication should I use for signers?
Use at least email plus SMS or SSO for low-risk transactions; for higher assurance, use multi-factor or knowledge-based methods and retain authentication evidence in the audit trail.
How do I correct an error after signing?
Do not alter the signed record. Prepare an amendment or rescission executed by the same parties and reference the original document to maintain an auditable chain.
Which records must be retained?
Retain signed forms according to applicable rules: IRS (3 years minimum, IRC §6501(a)), HIPAA (6 years, 45 CFR §164.530(j)) and longer if state law or fund policy requires.
What if the advisor's name doesn't match records?
Resolve mismatches before submitting to custodians. Provide a corporate resolution or registration documents to reconcile naming differences and avoid account access delays.

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