Client Service Agreement Template for Financial Planning

Taking on new clients is an exciting prospect when you’re focused on growing your financial planning business. Drafting a client agreement is an opportunity to set expectations and clarify what services you’ll provide. Developing a new document each time you onboard a client takes time; it also isn’t necessary if you’re using a template that you can easily customize. Here’s how to create a client service agreement template for financial planning clients.

SmartAsset’s Advisor Marketing Platform (AMP) offers financial advisors services like client lead generation, automated marketing and more. Learn about SmartAsset AMP today.

What Is a Client Service Agreement for Financial Planning?

A client service agreement is a document that details the nature of your relationship with a financial planning client. Well-written client service agreements are comprehensive, and answer all the questions a client may have about what to expect when working with you.

Client service agreements are communication tools that help you develop strong relationships with those you serve. They can also help you avoid issues with financial planning clients later if they eliminate confusion surrounding the services you provide and the fees you charge.

There is no universal client service agreement template for financial planners or advisors. Ultimately, you decide what to include in your agreement and the format it should take. Knowing what client agreements typically cover is the first step in developing your firm’s template.

Key Elements of a Financial Planning Client Service Agreement

Client agreements may vary in how they’re formatted, but they often include these 11 components:

Services. Many financial planning client agreements begin with a detailed description of the services provided. You can also mention any planning services your firm doesn’t provide.
Fees. An explanation of fees may be included with the services section or separately. Here, you’ll tell your clients how you’re paid, whether those fees are negotiable and, if so, how amendments to the fee schedule should be made.
Authorization. The authorization section tells clients whether your agreement is discretionary or non-discretionary. You should explain those terms so the client understands whether their approval is required for any decisions you make on their behalf.
Client Responsibilities. In addition to explaining the services you’ll provide, your agreement should also tell clients what they’re responsible for in the relationship. For example, clients need to be aware of how quickly they’re expected to respond to document requests from you.
Conflicts of Interest. Clients should be aware of the potential for conflicts of interest to arise and how they’re handled. If you’re a fiduciary, use your agreement to let your clients know that you’re bound to act in their best interest at all times.
Confidentiality. Your agreement should reassure clients that any information they share with you is confidential. If there are circumstances in which their information is shared, those should be clarified here, or you can include a line referring clients to your firm’s privacy policy.
Assignment. Assignment means the rights and obligations included in your agreement are transferred to someone else. It’s common for client service agreements to specify whether assignment is allowed and, if so, what conditions must be met (i.e., client consent) for that to occur.
Termination. Client agreements typically detail how the contract can be terminated, the process for doing so, and what type of notice is required from the financial planner or the client.
Severability. In contract law, severability clauses allow for the rest of the agreement to be enforced if one part of it becomes null and void or otherwise unenforceable. For example, if new regulatory guidelines make one aspect of your agreement invalid, the rest of its terms will remain intact under a severability clause.
Arbitration. Arbitration clauses spell out what you and your client agree to if there’s a dispute between you that requires resolution. You can specifically state that by agreeing to this clause, the client waives their right to sue you over the dispute.
Signatures. You and your client will need to sign the agreement and date it. The signature section typically comes last. If you want to give clients the opportunity to opt out of electronic document delivery, you can include a line item for that here as well.

Client Service Agreement Financial Planning Template

Once you understand the structure and what to include, you may feel ready to prepare a client agreement template for your financial planning firm. You can use the template below as a guide.

However, please note that the template shared below is not a substitute for a legally binding document prepared with the help of an attorney.

This Client Service Agreement (“Agreement”) is made and entered into by and between [Firm Name], hereafter referred to as “Us,” and [Client Name], hereafter referred to as “You” on the _____th day of _______________, 20____.

This agreement establishes an understanding of the services [Firm Name] will provide to you. You have the right to consult legal counsel before signing this agreement.

1. Our Services

[Firm Name] agrees to provide the following financial planning services:

Retirement planning
Investment strategy and portfolio review
Tax planning
Estate planning
Risk management
Budgeting and cash flow analysis

Excluded Services: We do not provide legal advice or tax preparation services. We may refer you to attorneys, certified public accountants (CPAs), or other providers of non-advisory services as needed.

Note: You can also include a description of how your firm constructs financial plans here, how often plans are updated, and when clients can expect delivery.

2. Fees

We charge hourly, flat, or ongoing fees, based on the scope of services provided to you. The maximum hourly fee is $$$. Flat fees range from $$$ to $$$, while ongoing fees vary by service.

Hourly Fee: Client acknowledges an hourly fee of $_____ (Client initial here)
Flat Fee: Client acknowledges a flat fee of $_____ (Client initial here)
Ongoing Services: Client acknowledges fees for ongoing services of $_____ (Client initial here)

Stated fees are non-negotiable. [Firm Name] may discount client fees on a discretionary basis. Payment is expected within [specify the timing]. Clients may pay fees [specify payment methods].

Note: If a deposit or retainer is required, clarify that here, including the amount and when said deposit or retainer is due.

3. Authorization

This Agreement is [discretionary/non-discretionary].

Discretionary: The client authorizes [Firm Name] to make certain financial decisions on their behalf without prior consent, in line with the agreed-upon plan.
Non-Discretionary: The client must approve all financial decisions and transactions carried out by [Firm Name] on their behalf.

The client acknowledges the meaning and implications of the selected arrangement.

4. Client Responsibilities

By entering into this agreement with [Firm Name], the client accepts responsibility for:

Providing complete and accurate information as requested.
Responding to document or data requests within [number] business days.
Promptly notifying [Firm Name] of any significant financial or personal changes that may affect their financial plan.

Note: You may include a mention of other client responsibilities here. For example, if you use a questionnaire to gauge risk tolerance or assess investment goals, clients should understand that they’re expected to complete it to assist with the planning process.

5. Conflicts of Interest

An advisor creating a client service agreement template for financial advisors.

[Firm Name] will disclose conflicts of interest that may arise throughout the term of the agreement in a timely and transparent manner. [Firm Name] is a fiduciary and is legally obligated to act in the Client’s best interests at all times. Any compensation received from third parties will be disclosed and does not influence financial planning recommendations.

6. Confidentiality

All information shared with [Firm Name] by the client is strictly confidential. Financial planning advice and recommendations are also held to be confidential.

Information will only be disclosed to such parties and under such terms as directed by law. Clients may receive a copy of [Firm Name’s] full privacy policy by request. The privacy policy is also available online at [link to your firm’s website].

7. Assignment

This Agreement may not be assigned by either party without the prior written consent of the other party. Any assignment in violation of this provision shall be considered null and void.

8. Termination

Either party to this agreement may terminate it at any time. [Firm Name] accepts termination notices in written form, but clients may also provide notice verbally. Fees paid for services not yet rendered will be refunded on a pro-rated basis within [number] business days of [Firm Name] acknowledging receipt of the termination request.

Note: If you use a specific formula to calculate prorated fees, include that here.

9. Severability

If any part of this Agreement is deemed invalid or unenforceable, the remaining provisions shall continue in full force and effect. This agreement is governed by the laws of [state/jurisdiction your firm is located in].

10. Arbitration

Any dispute arising from this Agreement shall be resolved through binding arbitration following the rules of the American Arbitration Association. By signing this Agreement, both parties waive their right to a court trial or jury trial regarding such disputes.

Note: While the example text used here is relatively brief, you can expand the arbitration section of your client agreement to include more detail. For instance, you may want to specify that by agreeing to arbitration, the client explicitly waives their right to sue. You can also outline the rights you and your client have in choosing an arbitrator, following American Arbitration Association guidelines and your state laws.

11. Signatures

By signing below, both parties agree to the terms of this Agreement.

Client Signature: _____________________________
Date: _______________

Printed Client Name: _________________________
Date: _______________

Client Signature (if joint account): _____________
Date: _______________

Printed Client Name: _________________________
Date: _______________

Client Address: ______________________________
Firm Address: ________________________________

Planner Signature: ____________________________
Date: _______________

☐ Client opts out of electronic document delivery.

Bottom Line

Client service agreements are an essential part of running a successful financial planning business. Utilizing templates can help you create a uniform agreement that you can personalize for each new client you take on, with minimal effort.

Tips for Growing Your Advisory Business

Templates are one way to simplify and streamline your business; automation is another. For example, if marketing is a substantial time drain for you, SmartAsset AMP can help. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
You can draft a client service agreement yourself using a template or a legal document creation service. However, you may want to consult an attorney to make sure you’re covering all your bases and using the proper terminology. You may spend a few hundred dollars on the attorney’s fee, but it can be worth the cost to know that you have a legally valid agreement template to share with clients.