Are electronic signatures legally binding?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted; ensure intent, consent, attribution, and reliable record retention to meet the four-part test for validity.

Do clients need to sign in front of a notary?

Most wealth agreements do not require notarization. Notarization is only required when state law or third-party custodians demand it. For asset transfers or certain powers, confirm custodian or state-specific requirements.

What authentication level is recommended?

Use at minimum email plus SMS or knowledge-based verification for high-value accounts. For higher assurance, employ ID credential analysis or multi-factor authentication and retain the audit trail.

How do I update or amend the agreement?

Create a written amendment signed by all parties that references the original agreement and effective date. Retain both the original and amendment with clear versioning for audit and regulatory review.

Can an agreement be revoked or terminated electronically?

Yes if termination rights are exercised per the agreement’s terms. Ensure revocation or termination notices follow contract-specified delivery methods and retain evidence of delivery and acceptance.

How long must signed agreements be retained?

Retain signed agreements for the active term plus applicable post-termination periods; follow IRS minimums (3 years) and industry rules such as HIPAA six-year retention where relevant.

Electronic Signature
Templates
Finance
Wealth Management Agreement

Wealth Management Agreement

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

WEALTH MANAGEMENT AGREEMENT

Parties and Engagement

This Wealth Management Agreement (the Agreement) is entered into effective as of between:

Client Name: Client Address:

Client Phone:

Client Email:

and

Advisor Name / Firm: Advisor Address:

Advisor Phone:

Advisor Email:

Engagement and Services

Advisor is hereby retained to provide discretionary and/or non-discretionary wealth management services, including formulation of an investment strategy, asset allocation advice, selection and monitoring of investments, and periodic reporting (the Services). Advisor shall exercise its duties in accordance with the investment objectives and restrictions specified below and in accordance with fiduciary standards applicable to advisory engagements.

Investment Objective (select one):

Conservative
Moderate
Aggressive

Risk Tolerance / Special Instructions:

Authority and Discretion

Client hereby grants Advisor the following authority with respect to the managed accounts (select applicable):

Discretionary authority to buy, sell, or otherwise effect transactions without prior Client consent for each transaction
Non-discretionary advisory authority; Advisor will obtain Client approval prior to transactions

Fees, Billing and Expenses

Client agrees to pay Advisor fees as set forth in the Fee Schedule below. Fees are fully earned as of the date billed and are payable in accordance with the Payment Terms. Client authorizes deduction of advisory fees from the managed account unless alternative arrangements are specified.

Fee Schedule

Description	Rate / Basis	Calculation	Estimated Annual Amount

Billing Frequency:

Payment Terms:

Late payment of fees shall accrue interest at a rate not to exceed the maximum allowed by applicable law. Client acknowledges that third-party custodian fees and transaction costs are separate and not included in Advisor fees unless expressly stated herein.

Custody, Reporting and Recordkeeping

Client will designate a qualified custodian to hold account assets. Advisor shall not have custody of client funds or securities except to the extent authorized to arrange fee deduction. Advisor will provide periodic reports describing account performance, holdings, fees charged and other customary information.

Custodian Name:

Conflicts of Interest; Disclosures

Advisor shall disclose material conflicts of interest arising from relationships with affiliates, third-party managers, or product providers. Advisor will seek to mitigate conflicts and act in the best interest of Client. Client acknowledges receipt of any required disclosure documents and consents to the arrangements described therein.

Disclosures / Special Arrangements:

Representations, Warranties and Covenants

Client represents and warrants that Client has full authority to enter this Agreement, that all information provided to Advisor is true and complete, and that Client will promptly notify Advisor of any material change in circumstances. Advisor represents that it is duly authorized to provide the Services and that it will perform in accordance with applicable professional standards.

Term, Termination and Transfer

This Agreement shall continue in effect until terminated by either party upon thirty (30) days' prior written notice. Upon termination, fees due through the termination date shall be payable. Advisor shall cooperate in the orderly transfer of accounts to a successor advisor upon receipt of customary transfer instructions.

Termination Date (if applicable):

Limitation of Liability and Indemnification

Except as otherwise required by law, Advisor shall not be liable for loss incurred in connection with the performance of its duties hereunder except for losses resulting from Advisor's gross negligence, willful misconduct, or material breach. Client agrees to indemnify and hold Advisor harmless from claims arising out of Client's breach of this Agreement, except to the extent caused by Advisor's gross negligence or willful misconduct.

Confidentiality

Each party shall treat non-public information received from the other as confidential and shall not disclose such information except as required by law or with the prior written consent of the disclosing party. Confidentiality obligations survive termination of this Agreement for five (5) years.

Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of . Any dispute arising under this Agreement shall be resolved by binding arbitration unless the parties agree otherwise in writing.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as either party may designate by notice to the other.

Miscellaneous

This Agreement constitutes the entire agreement between the parties regarding the subject matter herein and supersedes all prior agreements. Amendments must be in writing and signed by both parties. If any provision is held unenforceable, the remainder shall remain in effect.

Additional Terms / Special Instructions:

Acknowledgement and Certifications

By signing below, Client and Advisor acknowledge that they have read and understand this Agreement, that the representations and covenants contained herein are true and complete, and that they are authorized to enter into this Agreement on the terms set forth.

Client Printed Name:

By:

Date:

Advisor Printed Name:

By:

Date:

What a Wealth Management Agreement Is and When It Applies

A Wealth Management Agreement is a written contract that sets out the scope, authority, fees, reporting, and responsibilities between an investor or account holder and a wealth manager, investment advisor, or fiduciary. It governs discretionary authority, custodial arrangements, performance reporting, and conflicts of interest. The agreement documents investment objectives, risk tolerance, and fee schedules, and it establishes how transactions, withdrawals, and communications will be handled. Properly executed, it creates clear duties and recordkeeping obligations that support compliance, auditability, and dispute resolution across the relationship.

Why a Clear Wealth Management Agreement Matters

A well-drafted agreement reduces ambiguity about authority, fees, and reporting; protects client and manager interests; and creates a defensible record for audits, regulatory reviews, and disputes.

Who Typically Uses a Wealth Management Agreement

The agreement is used across client-advisor relationships to document delegation of investment authority and service terms.

Independent wealth managers and RIAs who manage discretionary client portfolios and require written investment mandates.
High-net-worth individuals, family offices, and institutional investors who need documented investment objectives and reporting standards.
Custodians and broker-dealers that require execution authority, trade settlement instructions, and liability allocations.

Clear role definitions and signatures reduce operational friction and support compliance with securities and tax obligations.

Who Signs and Who Authorizes

Investment Manager

The registered investment advisor or delegated portfolio manager signs to accept authority and fiduciary duties. Their signature block usually includes entity name, registration number (if applicable), and authorized representative name and title, plus contact information for trade clearance.

Client / Account Holder

The natural person, trustee, or corporate officer who grants authority signs here. Provide the exact legal name, capacity (e.g., trustee), taxpayer ID when required, and include specimen signature and date to avoid identity or tax withholding issues.

Core Sections Found in Professional Wealth Management Agreements

Standard agreements include specific sections that define authority, objectives, fees, reporting, conflicts, and termination terms so both parties understand duties and remedies.

Parties

Full legal names and capacities of client and manager, including entity type and any registered adviser numbers; identify custodians and third-party service providers when applicable.

Scope of Authority

Whether authority is discretionary or non-discretionary, permitted instruments, trading limits, margin usage, and any prohibited investments or restricted sectors.

Investment Objectives

Risk tolerance, target return, time horizon, liquidity needs, and benchmark(s) used to measure performance and suitability determinations.

Fees and Expenses

Management fee schedule, performance fees (if any), expense reimbursement, billing frequency, and calculation examples to avoid ambiguity.

Reporting & Records

Frequency and format of statements, performance reports, trade confirmations, and audit rights; specify electronic delivery options and consent.

Termination & Liability

Notice periods, wind-down instructions, custody transfer procedures, indemnities, and limitation of liability clauses.

Required Information and Key Data Fields

Client Name: Exact legal name

Taxpayer ID: SSN or EIN

Account Number: Custodian account ID

Address: Street, city, state, ZIP

Investment Goals: Risk/return profile

Signature Block: Signed and dated

Step-by-Step: Completing a Wealth Management Agreement

Follow these practical steps to prepare, review, and finalize the agreement with accurate signatures and supporting documentation.

01

Prepare draft: Assemble client data and standard clauses for review.
02

Review terms: Advisor and client confirm scope, fees, and benchmarks.
03

Authenticate signer: Use ID and TIN to verify identity before signing.
04

Execute: All parties sign, date, and retain final copies.

How to Configure an Online Signing Workflow

Set authentication, routing, and field rules to match the agreement's authority and compliance needs.

Field	Configuration
Authentication Level	Email + SMS code or ID check
Routing Order	Client first, then manager, then custodian
Conditional Fields	Show commission fields only if applicable
Template Save	Save as reusable template for similar accounts

Where to Send and File the Completed Agreement

After signatures, route copies to all parties and the custodian, and store records in secure systems for compliance and audit.

Client Copy: Delivered to client via secure email or portal
Advisor Copy: Retained in advisor records and CRM
Custodian: Uploaded to custodian onboarding portal
Compliance File: Stored in secure archive with audit trail

Digital Signing, Integrations, and Technical Considerations

Choose an eSignature platform that supports audit trails, configurable authentication, and integrations with custodians and CRM systems.

File Formats: PDF and DOCX
Integrations: CRM and storage
Authentication: SMS, KBA, or ID check

Verify platform compliance with required controls (audit trail, retention, encryption) and confirm integration compatibility with systems such as Salesforce, NetSuite, and custodial portals.

Key Timelines and Deadlines to Track

Track effective dates, onboarding tasks, notice periods, and reporting cadences linked to the agreement terms and regulatory requirements.

Effective Date:

Determines when authority and fee accrual begin

Onboarding Window:

Typical 7–30 day period to transfer assets

Review Frequency:

Quarterly or annual reporting as specified

Termination Notice:

Commonly 30–90 days; see agreement language

Tax Reporting:

Provide tax documents per IRS deadlines

Practical Tips for Accurate and Efficient Completion

Adopt consistent procedures to reduce errors and speed onboarding while maintaining audit-ready records and regulatory compliance.

Standardize templates

Use standardized, lawyer-reviewed templates with mandatory fields, conditional logic, and version control to ensure consistent terms and reduce legal review time during onboarding.

Verify identity early

Confirm client identity and TIN before placing execution fields; mismatches can delay funding, trigger backup withholding, or require re-execution of documents.

Record consent for e-signatures

For consumer-facing agreements, provide ESIGN consumer disclosures, document consent to electronic records, and capture acceptance to satisfy 15 U.S.C. ch. 96 requirements.

Keep auditable trails

Retain a secure, timestamped audit trail that records signer IP, authentication method, timestamps, and the final signed PDF to support dispute resolution and regulator requests.

Common Preparation Mistakes to Avoid

Using inconsistent names or abbreviations that do not match tax or custody records, causing settlement delays or withholding actions.
Leaving fee or performance calculation fields ambiguous, which leads to disputes over amounts owed and billing cycles.
Failing to obtain written consent for electronic delivery in consumer-facing settings, risking ESIGN compliance gaps and enforceability issues.
Neglecting to configure signer authentication or conditional fields, which increases the risk of unauthorized signatures or incomplete agreements.

Penalties and Risks of an Incorrect or Missing Agreement

Regulatory Fines: Possible enforcement actions and fines

Tax Withholding: Backup withholding at 24% for bad TIN

Contract Disputes: Increased litigation and remediation costs

Operational Delay: Asset transfer and settlement holds

Reputational Risk: Client trust and referral losses

Information Return Penalties: IRC §6721 penalties possible

Illustrative Use Cases and Real-World Examples

These brief examples show how firms deploy agreements and e-signatures to speed onboarding and preserve audit trails for compliance.

Optica Ventures

Optica implemented digital execution for client contracts to streamline onboarding and reduce manual steps.

The interface was easy for clients.
Brian Fitzgibbons, COO, said the solution simplified workflows and made it easier for customers to complete required documents while maintaining auditability and security for internal reviews.

Martin Properties

A small firm moved from paper to online signing for investor subscription agreements, reducing turnaround time significantly.

Mobile signing enabled signatures in the field.
Tim Martin described faster processing and compliance assurance, noting that the team could execute documents remotely with consistent records for audits and investor reporting.

Comparing eSignature Vendor Pricing and Capabilities

The table compares base pricing and select capabilities across common eSignature providers; signNow appears first in accordance with vendor data.

	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	Trial available	Trial available	Trial available	Trial available
Bulk Send	Yes	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About Wealth Management Agreements

Answers to common questions about execution, enforceability, electronic signatures, and post-signature handling for wealth management agreements.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws where adopted; ensure intent, consent, attribution, and reliable record retention to meet the four-part test for validity.
Do clients need to sign in front of a notary?
Most wealth agreements do not require notarization. Notarization is only required when state law or third-party custodians demand it. For asset transfers or certain powers, confirm custodian or state-specific requirements.
What authentication level is recommended?
Use at minimum email plus SMS or knowledge-based verification for high-value accounts. For higher assurance, employ ID credential analysis or multi-factor authentication and retain the audit trail.
How do I update or amend the agreement?
Create a written amendment signed by all parties that references the original agreement and effective date. Retain both the original and amendment with clear versioning for audit and regulatory review.
Can an agreement be revoked or terminated electronically?
Yes if termination rights are exercised per the agreement’s terms. Ensure revocation or termination notices follow contract-specified delivery methods and retain evidence of delivery and acceptance.
How long must signed agreements be retained?
Retain signed agreements for the active term plus applicable post-termination periods; follow IRS minimums (3 years) and industry rules such as HIPAA six-year retention where relevant.

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