Financial adviser client agreement template
A financial adviser client agreement sets out the service a firm gives a new client, what it costs and the client's rights. This version covers independent or restricted advice, the initial advice service, optional ongoing service tiers, how fees are paid, commission, conflicts of interest, complaints and the Financial Ombudsman Service, the FSCS, ending the agreement and how the client's information is used. It is signed with each new client, and the client, the adviser, the advice type and the fees change each time.
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What changes each time
26 values. Everything else is your wording, kept exactly.
The firm
- Firm name
- Firm address
- Firm email
- Firm's company number
- FCA reference number
- Principal firm (if an appointed representative)
The client and adviser
- Client names
- Client address
- Adviser
- Date of the agreement
The service
- Independent or restricted advice
- What we advise on
- Restrictions on advice
- Free first meeting
Fees
- Initial advice fee basis
- Initial advice fee
- When the initial fee is payable
- Ongoing service tiers and what each includes
- Ongoing annual fee for each tier
- How fees are paid
- Commission on protection insurance
Complaints, ending and signing
- Complaints contact
- Notice from the firm to end
- Cancellation period (optional)
- Privacy notice link
- Signatory for the firm
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“Type of advice: either independent, considering the whole market, or restricted to a stated range of products, providers or product types.”
For a restricted firm advising only on pension products from a short list of providers, the agreement names the providers and says products outside that range are not considered.
- One of several wordings
“Initial advice fee: either a fixed fee, or a percentage of the amount invested with a minimum and a maximum.”
For a percentage fee, the agreement works through an example in pounds and says the fee is payable only if the client goes ahead.
- Once for each item
“One row for each ongoing service tier the firm offers.”
A firm with an Essential and a Comprehensive tier lists each with what it includes and its annual fee.
- One of several wordings
“Firm status: either directly authorised by the FCA, or an appointed representative of a principal firm.”
For an appointed representative, the agreement names the principal firm and both reference numbers.
- Only when…
“Include the right to cancel within a stated number of days only when the firm offers one.”
When the firm gives a 14-day cancellation right, it appears as a clause, and is left out otherwise.
Questions people ask
What is the difference between independent and restricted advice?
Independent advice considers a broad range of products from across the whole market and is unbiased and unrestricted. Restricted advice is limited to certain products, providers or product types, and a firm must say clearly which. The agreement states which applies and, if restricted, what the limits are.
Does a financial adviser have to be authorised by the FCA?
Generally, yes, to give regulated advice. A firm is either directly authorised or an appointed representative of an authorised principal firm. The agreement states which, and points clients to the Financial Services Register to check.
What does the agreement say about compensation if the firm fails?
It says the firm is covered by the Financial Services Compensation Scheme, which for most investment and advice claims against failed firms covers up to £85,000 per person per firm. The agreement gives the FSCS contact details. Limits can change, so firms should check the current figure.
Does this agreement make my firm compliant with FCA rules?
No. It is a starting document and does not replace the FCA Handbook. Rules on disclosure, suitability and the Consumer Duty still need checking by the firm, ideally with its compliance adviser.
Can I use my own client agreement instead of this one?
Yes. Upload your own Word or PDF version and DocuWeave turns it into a template in your wording, then fills each new copy from the emails and details you already have.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.