This document is an Investment Advisory Agreement that appoints the investment advisor as attorney-in-fact to the trustee. It details the duties and obligations of the investment advisor and provides indemnity to the advisor. It also spells out the duration and termination of the agreement and the governing law of the agreement.
Rhode Island Investment Advisory Agreement is a legally binding contract between an investment advisor and a client residing in Rhode Island. This agreement outlines the terms and conditions under which the investment advisor will provide advisory services to the client, and the responsibilities of both parties involved in the investment advisory relationship. The Rhode Island Investment Advisory Agreement typically includes various key components, such as: 1. Parties involved: It clearly identifies the investment advisor and the client, including their legal names and contact information. 2. Scope of services: This section details the specific investment advisory services that will be provided by the advisor. It may include portfolio management, financial planning, asset allocation, risk assessment, and other related services. 3. Fees and compensation: The agreement outlines the fees the client will pay for the advisory services and how they will be calculated. It may include an annual fee, hourly rates, performance-based fees, or a combination of these. This section also mentions any potential additional expenses, such as custodial fees or transaction costs. 4. Duration and termination: The agreement specifies the initial term of the advisory relationship and any automatic renewal provisions. Additionally, it outlines the conditions under which either party can terminate the agreement, including provisions for notice periods and potential penalties. 5. Duties and responsibilities: This section clarifies the responsibilities and obligations of both the advisor and the client. It may cover areas such as disclosure of conflicts of interest, adherence to applicable laws and regulations, client reporting, and confidentiality. 6. Legal disclosures: The agreement discloses important legal information, including regulatory registrations, affiliations, and any disciplinary history of the investment advisor. It also includes disclaimers about potential risks and market uncertainties, protecting both parties involved. It is worth noting that there may be variations of the Rhode Island Investment Advisory Agreement based on the specific nature of the advisory services being offered or the type of client being served. For instance, there may be specialized agreements for high-net-worth individuals, institutional clients, or different investment strategies such as active management or passive index investing. In conclusion, the Rhode Island Investment Advisory Agreement is a comprehensive contract that ensures transparency, establishes expectations, and governs the relationship between an investment advisor and a client. It is crucial for both parties to carefully review and understand the terms before entering into this agreement to ensure a mutually beneficial and compliant investment advisory relationship.
