FINANCIAL PLANNING CONSULTING AGREEMENT
FINANCIAL PLANNING CONSULTING AGREEMENT Client’s Name: Joint Client’s Name: Investment Advisor Representative: Date of this Agreement: Client and Joint Client (collectively “Client”), Signator Investors, Inc. (“Signator”), an investment advisor registered with the Securities and Exchange Commission, and the Investment Advisor Representative identified above (“Advisor”) who is associated with Signator, agree as follows: IMPORTANT: Please check the appropriate section for the services selected by the Client:
□ Financial Planning Services Client acknowledges that the value and usefulness of the financial planning services provided by Advisor depends on the information Client provides and Client’s active participation in the development and identification of Client’s financial planning objectives. In this regard, Client will provide Advisor with copies, as applicable, of insurance policies, wills, trusts, business arrangements, tax returns, and other documents that may be reasonably requested by Advisor in order to complete the evaluation and offer financial planning advice to Client. Advisor will provide the following services, as applicable, based on the information furnished by Client:
■ A review of Client’s present financial position, including the following as appropriate: net worth statement, budget/cash flow analysis, risk assessment, and income tax assessment.
■ A review of Client’s financial goals, objectives, risk tolerance, time horizon, and expectations. ■ A written financial plan comprised of an evaluation and analysis of the information Client provided and recommendations for Client’s personalized financial program, including the items Client has checked below. Client understands that only those items that have been checked will be covered in the written evaluation and recommendations from financial planning software. General Needs
□ Educational needs □ Retirement needs □ Estate planning needs □ Asset Allocation □ Investment planning, portfolio review or other accumulation needs
Risk Management Needs
□ Survivor income needs □ Disability income needs □ Long term care needs □ Other insurance needs
Special Needs
□ Business planning needs □ Charitable planning □ Special family needs (divorce, adoption, adult dependent)
(excluding health, property/casualty other liability)
■ Consultation regarding the potential implementation of Advisor’s recommendations will be allocated for a period of up to three months from the date the presentation and written evaluation and analysis took place. However, the total consultation period may not extend beyond six months from the date of this Agreement.
■ In the event Client, Advisor and Signator agree to extend this Agreement beyond six months, Advisor will provide continued financial planning consulting, taking into account Client’s changing circumstances to the extent Client keeps Advisor informed of these changes and provides Advisor with updates to the documentation Client previously provided to Signator.
1
COMPENSATION Client will compensate Signator and Advisor for all services furnished under this Agreement by the payment of fees in accordance with these provisions. It is agreed that the fees are in no way based on the capital gains or appreciation of Client’s funds. Advisor may choose to waive fee under his/her discretion. Initial Plan Consultation For financial planning services based on specific needs checked above (enter N/A if fee waived): Hourly rate of $ , plus out-of-pocket expenses, with an estimate of hours to complete the financial plan, or flat fee of $ . An advance (maximum $1,200 or 50% of the total fee, whichever is less) of $ is due upon requesting the financial planning services, which will be applied to the total, and the balance will be due upon presentation of the plan. Review of Existing Plan Review and update of Client’s previously provided financial plan (enter N/A if fee waived): Ongoing review and update fee $ or hourly rate of $ , with an estimate of hours to complete the review and update. An advance of $ (may not exceed $1,200 or 50% of the total fee, whichever is less) is due upon requesting the review and update, which will be applied to the total, and the balance will be due upon presentation of the review and update. Fees will be determined by Signator Investors, Inc. and Advisor based on a preliminary assessment of the services agreed upon and the complexity of Client’s financial circumstances. If Client requests an ongoing review and update of Client’s plan, the fee will be based on the complexity of each year’s review. The fee will be due and payable at the completion of the review and update, and will be in accordance with the above Fee Schedule.
□ Consulting Services Advisor agrees to provide consultation on various financial advisory topics to Client that will address Client’s specific financial needs and objectives, analyze Client’s current financial situation and investment goals, and present strategies and recommendations to help Client attain Client’s stated investment goals. Advisor shall discuss with Client any one or more of the following financial advisory topics, for which Advisor will charge an hourly or a flat fee, as agreed upon by Client and Advisor:
■ Investment Planning/Asset Allocation: Process of reviewing or establishing Client’s investment planning goals, objectives and strategies, and establishing the Client’s asset allocation. Asset allocation is based on factors including but not limited to the Client’s risk tolerance, goals, and time horizon;
■ Insurance Planning: Involves assessing a Client’s insurance and protection needs; ■ Retirement Planning: The process of reviewing or establishing a strategy to help generate or maintain desired income during the Client’s retirement;
■ Estate Planning: The process of reviewing or establishing a plan for the disposition of the Client’s estate; ■ Business Ownership and Succession Planning: Involves assessing the risks and goals of a business and the strategies to allow for succession of the business into the future Advisor may use a variety of tools to provide the agreed upon consulting services. Advisor shall not be obligated to make any recommendations, give any advice, or design any program to implement Client’s financial goals if such goals are, in Advisor’s sole discretion, impracticable or unattainable. Also, Advisor shall not be obligated to make any recommendation or give any advice regarding any investment product if, in Advisor’s sole discretion, such investment product would be unsuitable for Client. Advisor shall not be responsible for the accuracy of information obtained from other sources. The Advisor cannot offer consulting services to John Hancock plan participants or with participants of plans serviced by John Hancock. At a minimum, a summary of recommendations will be provided to the client under consulting services. Advisor may also use financial analysis tools to assist in providing consulting services to Client. Such financial analysis tools may include, but are not limited to, asset allocation reports, investment holdings reports, client net worth reports, hypothetical projected performance and cash flow analysis, or other similar financial analysis tools.
2
COMPENSATION Signator will be compensated for the consulting services as specified below. Signator will pay Advisor a portion of the fees received by Signator from Client. Signator’s fee is calculated as: [CHECK ONE]:
□ □
An hourly fee, as described in the Consulting Services Invoice. Advisor’s maxmium hourly fee is $250.00. The Advisor’s hourly rates may vary depending on, among other things, the complexity of Client’s circumstances and the services to be rendered. $ hourly rate agreed upon. A flat fee for consulting services rendered. Advisor will not be compensated on the basis of any realized or unrealized capital gains, or on the basis of any capital appreciation in any mutual fund or other security that Advisor may recommend to Client pursuant to this Agreement. $ flat fee rate agreed upon.
OTHER TERMS AND CONDITIONS consulting recommendations other than as outlined in this Agreement. Client should consult with legal counsel or other professionals Client deems necessary in implementing recommendations contained in the financial plan or through consulting services provided. Implementation of any portion of the plan is entirely at Client’s discretion.
1. DISCLOSURE OF INTEREST AND CAPACITY Following Advisor’s consultation with Client, Advisor may recommend that Client purchase or sell securities or other investment products, and/or enter into other financial transactions. Neither Advisor, nor any officer, employee, registered representative, or other agent of Signator or of any affiliate of Signator, guarantees the performance of any security or other investment product, or guarantees the availability of any tax benefit, with regard to any recommendation that Advisor may make to Client. As to any security or other investment product that Advisor may recommend to Client, Advisor acts only in the capacity of an agent and not as a principal.
Client understands that some recommendations contained in the financial plan or obtained through consulting services are based in part on Client’s tax status. Client also understands that neither Signator nor Advisor is in the business of rendering tax advice and Signator and Advisor cannot guarantee that Client will derive any tax benefit through the implementation of recommendations contained in the plan. Therefore, Signator and Advisor encourage Client to consult with his or her own tax advisor prior to implementing any investment recommendations. Advisor, in the capacity of the Advisor’s outside business activity, may be in the business of rendering tax advice and any tax advice offered by him or her regarding the investment recommendations contained in the financial plan or consulting arrangement is offered independently of Signator.
Client will not be obligated, under this Agreement or otherwise, to follow any of Advisor’s recommendations or execute any securities transactions through Advisor. However, Client may, if Client so chooses, implement Advisor’s recommendations for the purchase and/or sale of securities through Advisor. Client understands and acknowledges that Advisor is a Signator registered representative and places orders for securities transactions through Signator for which Advisor receives commission income and other benefits. Client may use Advisor’s services to effect purchases of securities through Signator, or Client may purchase securities through any other brokerdealer. Client retains all rights over any account opened in connection with the financial planning/consulting services provided pursuant to this agreement, including, but not limited to, the responsibility to vote any and all applicable proxies. If Client chooses to execute any of the securities transactions recommended by Advisor and place such trades through Advisor, Client understands and acknowledges that, in addition to the compensation provided for in the respective Compensation section of this agreement, Signator and Advisor may receive additional compensation on commissionable transactions placed through Signator. Therefore, Client may pay transaction fees and/or commissions, which will be separate and distinct from the fee that Client will pay for Advisor’s services hereunder.
This agreement will not provide Signator and Advisor discretionary authority regarding financial decisions. Signator and Advisor will not be responsible for the accuracy of information obtained from other sources. Client understands that Signator and Advisor provide similar services to other clients and receive fees for such services. The advice given and the actions taken with respect to such other clients may differ from advice given to Client. 3. POTENTIAL CONFLICTS OF INTEREST Signator is also registered as a broker-dealer with the Financial Industry Regulatory Authority (FINRA). Further, Advisor is also a registered representative of Signator. As a result, a potential conflict may arise between Client’s interests and Signator’s and Advisor’s interest in implementing transactions through Signator. Client understands that Client is under no obligation to
2. RECOMMENDATIONS Signator and Advisor do not assume any obligation for the implementation of Client’s financial plan/ 3
implement the financial plan or consulting services by executing transactions through Signator. If Client chooses in Client’s sole discretion to effect transactions with Signator, Signator and Advisor may collect transaction fees or commissions separate from the financial planning/ consulting fees charged under this Agreement. Client also understands that certain officers, employees and/or other affiliates of Signator maintain various business relationships through which they receive compensation aside from the fees outlined in this Agreement.
7. PRIVACY Signator and Advisor agree that all of the personal information furnished by Client pursuant to this Agreement shall be kept in strict confidence and will not be disclosed to any other unrelated person without Client’s prior consent, unless such disclosure is required by law. Signator’s Notice of Privacy Policy is attached to this Agreement. 8. ASSIGNMENT This Agreement may not be assigned by any party without the prior consent (which consent may be provided via negative consent following full and fair disclosure of all material facts) of the other party.
In formulating the financial plan/consulting recommendations, Advisor will consider primarily the financial products offered through or approved by Signator. As a result, equity products recommended by Advisor in connection with Client’s financial plan/ consulting recommendations may only consist of financial products that have been approved by Signator.
9. TERMINATION Either party may terminate this Agreement at any time by giving a written notice of termination to the other party as provided in paragraph 15 of this Agreement. The termination will be effective upon receipt of the written notice by the other party (“Termination Date”).
4. RISK ACKNOWLEDGMENT Client recognizes that the financial plan/consulting services described in this Agreement involves Advisor’s judgment and that his or her views regarding the economy and the securities markets, like all predictions of future events, cannot be guaranteed to be accurate. Client represents that no party to this Agreement has made any guarantee, either oral or written, that Client’s investment objectives will be achieved.
If the Client terminates the Financial Planning Services portion of this Agreement within five business days of its signing, the Client will receive a full refund of all fees. If this Agreement is terminated after five business days of its signing, any prepaid fees will be prorated and the unused portion will be returned to the Client. 10. SEVERABILITY If any provision of this Agreement shall be held to be, or shall be made, non-enforceable by any statute, rule, regulation, decision of any tribunal or otherwise, such provision shall be automatically reformed and construed so as to be valid, operative, and enforceable to the maximum extent permitted by law or equity while most nearly preserving its original intent. The invalidity of any provision of this Agreement shall not render invalid the remainder of this Agreement and, to that extent, the invalid provision of this Agreement shall be deemed to be severable.
Client understands that the financial plan is designed as a long-term investment program and that asset withdrawals may impair the achievement of Client’s investment objectives. 5. ANTI-HEDGE CLAUSE STATEMENT The federal and state securities laws impose liabilities under certain circumstances on persons who act in good faith, therefore nothing in this agreement will constitute a waiver of any client’s rights under common law or federal securities laws. 6. QUALIFIED PLANS (Only) In formulating the financial plan/consulting recommendations for Client’s qualified plan assets, Advisor will consider the information Client provides Advisor concerning Client’s assets and investments that are not part of the qualified plan. In formulating the financial plan/ consulting recommendations for Client’s assets that are not part of the qualified plan, Advisor will take into account Client’s qualified plan assets. With respect to the qualified plan assets, Advisor will make suggestions only to asset allocation of the account. Advisor will be compensated for his/her advice with respect to Client’s qualified plan assets and, if applicable, for his/her investment advice with respect to Client’s non-qualified plan assets.
11. JOINT AND SEVERAL OBLIGATIONS In the event that two or more individuals execute this Agreement as “Client,” each such individual agrees to be jointly and severally bound by each obligation of Client provided for herein. 12. GOVERNING LAW This Agreement, and all of the rights and obligations of the parties hereto, shall be governed by and construed in accordance with the laws of the State of Florida without giving effect to any conflicts of law principles, to the extent that such state law is not preempted by the provisions of any law of the United States, including, without limitation, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940 (“Advisers Act”), and the rules and regulations of the Securities and Exchange Commission thereunder.
4
13. ARBITRATION This agreement contains a pre-dispute arbitration clause. By signing an arbitration agreement the parties agree as follows:
14. ENTIRE AGREEMENT This Agreement supersedes any and all prior agreements between the parties hereto with respect to the subject matter contained herein and constitutes the entire agreement between the parties. TFA has the right to amend this Agreement by modifying or changing the terms and conditions of this Agreement by mailing a written notice of the modification or change as provided in paragraph 15 of this Agreement. Such written notice shall include the effective date of such modification or change, which shall not be effective prior to 30 days from the date of such written notice. Client’s use of the account after the effective date of the modification or change shall constitute Client’s acknowledgement and agreement to the terms of such modification or change.
■ ALL PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIALBY JURY, EXCEPT AS PROVIDED BY THE RULES OF THE ARBITRATION FORUM IN WHICH A CLAIM IS FILED.
■ ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A PARTY’S ABILITY TO HAVE A COURT REVERSE OR MODIFY AN ARBITRATION AWARD IS VERY LIMITED.
■ THE ABILITY OF THE PARTIES TO OBTAIN DOCUMENTS, WITNESS STATEMENTS, AND OTHER DISCOVERY IS GENERALLY MORE LIMITED IN ARBITRATION THAN IN COURT PROCEEDINGS.
15. NOTICES Notices and reports provided for herein, in the case of Signator, shall be mailed to Attn: Signator Ops P.O. Box 55964, Boston, MA 02205. Notices and reports provided for herein, in the case of Client, shall be transmitted by U.S. mail, overnight delivery, facsimile transmission, email or other electronic delivery in accordance with normal business practices. Notices and reports shall be delivered to Client at the following address:
■ THE ARBITRATORS DO NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR AWARD.
■ THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF INDIVIDUALS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY. CORPORATED INTO THIS AGREEMENT.
■ THE RULES OF SOME ARBITRATION FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN ARBITRATION. IN SOME CASES, A CLAIM THAT IS INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN COURT. THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS FILED, AND ANY AMENDMENTS THERETO, SHALL BE INCORPORATED INTO THIS AGREEMENT. No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; or (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this agreement except to the extent stated herein. In consideration of opening one or more advisory accounts for the undersigned, the undersigned agree(s) that any controversy between us arising out of or relating to my (our) account, transactions with or for me (us), or this agreement or the breach thereof shall be settled by arbitration in accordance with the rules, then established, of the Financial Industry Regulatory Authority (FINRA). Nothing in this agreement shall limit or contradict the rules of any selfregulatory organization nor limit the ability of any party to file any claim in arbitration or limit the ability of an arbitration panel to make any award. 5
BY SIGNING BELOW CLIENT ACKNOWLEDGES RECEIVING SIGNATOR’S FORM ADV, PART 2A, SII WELCOME BROCHURE,THE ADVISOR’S FORM ADV, PART 2B AND SIGNATOR’S PRIVACY POLICY NOTICE. THIS AGREEMENT CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE AS SET FORTH IN SECTION 13 (THIRTEEN) ABOVE. CLIENT ACKNOWLEDGES RECEIVING A COPY OF THIS AGREEMENT.
Client’s Signature
Date mm/dd/yyyy
Client’s Name (Print)
Joint Client’s Signature
Date mm/dd/yyyy
Joint Client’s Name (Print)
Street Address
Advisor’s Signature
Date mm/dd/yyyy
Supervisor’s Signature
Date mm/dd/yyyy
Supervisor’s Name (Print)
Securities and Investment Advisory Services offered through Signator Investors, Inc. Member FINRA, SIPC, a Registered Investment Adviser, Boston, MA 02116.
SIIFPCA 07/16
□ Financial Planning Services Client acknowledges that the value and usefulness of the financial planning services provided by Advisor depends on the information Client provides and Client’s active participation in the development and identification of Client’s financial planning objectives. In this regard, Client will provide Advisor with copies, as applicable, of insurance policies, wills, trusts, business arrangements, tax returns, and other documents that may be reasonably requested by Advisor in order to complete the evaluation and offer financial planning advice to Client. Advisor will provide the following services, as applicable, based on the information furnished by Client:
■ A review of Client’s present financial position, including the following as appropriate: net worth statement, budget/cash flow analysis, risk assessment, and income tax assessment.
■ A review of Client’s financial goals, objectives, risk tolerance, time horizon, and expectations. ■ A written financial plan comprised of an evaluation and analysis of the information Client provided and recommendations for Client’s personalized financial program, including the items Client has checked below. Client understands that only those items that have been checked will be covered in the written evaluation and recommendations from financial planning software. General Needs
□ Educational needs □ Retirement needs □ Estate planning needs □ Asset Allocation □ Investment planning, portfolio review or other accumulation needs
Risk Management Needs
□ Survivor income needs □ Disability income needs □ Long term care needs □ Other insurance needs
Special Needs
□ Business planning needs □ Charitable planning □ Special family needs (divorce, adoption, adult dependent)
(excluding health, property/casualty other liability)
■ Consultation regarding the potential implementation of Advisor’s recommendations will be allocated for a period of up to three months from the date the presentation and written evaluation and analysis took place. However, the total consultation period may not extend beyond six months from the date of this Agreement.
■ In the event Client, Advisor and Signator agree to extend this Agreement beyond six months, Advisor will provide continued financial planning consulting, taking into account Client’s changing circumstances to the extent Client keeps Advisor informed of these changes and provides Advisor with updates to the documentation Client previously provided to Signator.
1
COMPENSATION Client will compensate Signator and Advisor for all services furnished under this Agreement by the payment of fees in accordance with these provisions. It is agreed that the fees are in no way based on the capital gains or appreciation of Client’s funds. Advisor may choose to waive fee under his/her discretion. Initial Plan Consultation For financial planning services based on specific needs checked above (enter N/A if fee waived): Hourly rate of $ , plus out-of-pocket expenses, with an estimate of hours to complete the financial plan, or flat fee of $ . An advance (maximum $1,200 or 50% of the total fee, whichever is less) of $ is due upon requesting the financial planning services, which will be applied to the total, and the balance will be due upon presentation of the plan. Review of Existing Plan Review and update of Client’s previously provided financial plan (enter N/A if fee waived): Ongoing review and update fee $ or hourly rate of $ , with an estimate of hours to complete the review and update. An advance of $ (may not exceed $1,200 or 50% of the total fee, whichever is less) is due upon requesting the review and update, which will be applied to the total, and the balance will be due upon presentation of the review and update. Fees will be determined by Signator Investors, Inc. and Advisor based on a preliminary assessment of the services agreed upon and the complexity of Client’s financial circumstances. If Client requests an ongoing review and update of Client’s plan, the fee will be based on the complexity of each year’s review. The fee will be due and payable at the completion of the review and update, and will be in accordance with the above Fee Schedule.
□ Consulting Services Advisor agrees to provide consultation on various financial advisory topics to Client that will address Client’s specific financial needs and objectives, analyze Client’s current financial situation and investment goals, and present strategies and recommendations to help Client attain Client’s stated investment goals. Advisor shall discuss with Client any one or more of the following financial advisory topics, for which Advisor will charge an hourly or a flat fee, as agreed upon by Client and Advisor:
■ Investment Planning/Asset Allocation: Process of reviewing or establishing Client’s investment planning goals, objectives and strategies, and establishing the Client’s asset allocation. Asset allocation is based on factors including but not limited to the Client’s risk tolerance, goals, and time horizon;
■ Insurance Planning: Involves assessing a Client’s insurance and protection needs; ■ Retirement Planning: The process of reviewing or establishing a strategy to help generate or maintain desired income during the Client’s retirement;
■ Estate Planning: The process of reviewing or establishing a plan for the disposition of the Client’s estate; ■ Business Ownership and Succession Planning: Involves assessing the risks and goals of a business and the strategies to allow for succession of the business into the future Advisor may use a variety of tools to provide the agreed upon consulting services. Advisor shall not be obligated to make any recommendations, give any advice, or design any program to implement Client’s financial goals if such goals are, in Advisor’s sole discretion, impracticable or unattainable. Also, Advisor shall not be obligated to make any recommendation or give any advice regarding any investment product if, in Advisor’s sole discretion, such investment product would be unsuitable for Client. Advisor shall not be responsible for the accuracy of information obtained from other sources. The Advisor cannot offer consulting services to John Hancock plan participants or with participants of plans serviced by John Hancock. At a minimum, a summary of recommendations will be provided to the client under consulting services. Advisor may also use financial analysis tools to assist in providing consulting services to Client. Such financial analysis tools may include, but are not limited to, asset allocation reports, investment holdings reports, client net worth reports, hypothetical projected performance and cash flow analysis, or other similar financial analysis tools.
2
COMPENSATION Signator will be compensated for the consulting services as specified below. Signator will pay Advisor a portion of the fees received by Signator from Client. Signator’s fee is calculated as: [CHECK ONE]:
□ □
An hourly fee, as described in the Consulting Services Invoice. Advisor’s maxmium hourly fee is $250.00. The Advisor’s hourly rates may vary depending on, among other things, the complexity of Client’s circumstances and the services to be rendered. $ hourly rate agreed upon. A flat fee for consulting services rendered. Advisor will not be compensated on the basis of any realized or unrealized capital gains, or on the basis of any capital appreciation in any mutual fund or other security that Advisor may recommend to Client pursuant to this Agreement. $ flat fee rate agreed upon.
OTHER TERMS AND CONDITIONS consulting recommendations other than as outlined in this Agreement. Client should consult with legal counsel or other professionals Client deems necessary in implementing recommendations contained in the financial plan or through consulting services provided. Implementation of any portion of the plan is entirely at Client’s discretion.
1. DISCLOSURE OF INTEREST AND CAPACITY Following Advisor’s consultation with Client, Advisor may recommend that Client purchase or sell securities or other investment products, and/or enter into other financial transactions. Neither Advisor, nor any officer, employee, registered representative, or other agent of Signator or of any affiliate of Signator, guarantees the performance of any security or other investment product, or guarantees the availability of any tax benefit, with regard to any recommendation that Advisor may make to Client. As to any security or other investment product that Advisor may recommend to Client, Advisor acts only in the capacity of an agent and not as a principal.
Client understands that some recommendations contained in the financial plan or obtained through consulting services are based in part on Client’s tax status. Client also understands that neither Signator nor Advisor is in the business of rendering tax advice and Signator and Advisor cannot guarantee that Client will derive any tax benefit through the implementation of recommendations contained in the plan. Therefore, Signator and Advisor encourage Client to consult with his or her own tax advisor prior to implementing any investment recommendations. Advisor, in the capacity of the Advisor’s outside business activity, may be in the business of rendering tax advice and any tax advice offered by him or her regarding the investment recommendations contained in the financial plan or consulting arrangement is offered independently of Signator.
Client will not be obligated, under this Agreement or otherwise, to follow any of Advisor’s recommendations or execute any securities transactions through Advisor. However, Client may, if Client so chooses, implement Advisor’s recommendations for the purchase and/or sale of securities through Advisor. Client understands and acknowledges that Advisor is a Signator registered representative and places orders for securities transactions through Signator for which Advisor receives commission income and other benefits. Client may use Advisor’s services to effect purchases of securities through Signator, or Client may purchase securities through any other brokerdealer. Client retains all rights over any account opened in connection with the financial planning/consulting services provided pursuant to this agreement, including, but not limited to, the responsibility to vote any and all applicable proxies. If Client chooses to execute any of the securities transactions recommended by Advisor and place such trades through Advisor, Client understands and acknowledges that, in addition to the compensation provided for in the respective Compensation section of this agreement, Signator and Advisor may receive additional compensation on commissionable transactions placed through Signator. Therefore, Client may pay transaction fees and/or commissions, which will be separate and distinct from the fee that Client will pay for Advisor’s services hereunder.
This agreement will not provide Signator and Advisor discretionary authority regarding financial decisions. Signator and Advisor will not be responsible for the accuracy of information obtained from other sources. Client understands that Signator and Advisor provide similar services to other clients and receive fees for such services. The advice given and the actions taken with respect to such other clients may differ from advice given to Client. 3. POTENTIAL CONFLICTS OF INTEREST Signator is also registered as a broker-dealer with the Financial Industry Regulatory Authority (FINRA). Further, Advisor is also a registered representative of Signator. As a result, a potential conflict may arise between Client’s interests and Signator’s and Advisor’s interest in implementing transactions through Signator. Client understands that Client is under no obligation to
2. RECOMMENDATIONS Signator and Advisor do not assume any obligation for the implementation of Client’s financial plan/ 3
implement the financial plan or consulting services by executing transactions through Signator. If Client chooses in Client’s sole discretion to effect transactions with Signator, Signator and Advisor may collect transaction fees or commissions separate from the financial planning/ consulting fees charged under this Agreement. Client also understands that certain officers, employees and/or other affiliates of Signator maintain various business relationships through which they receive compensation aside from the fees outlined in this Agreement.
7. PRIVACY Signator and Advisor agree that all of the personal information furnished by Client pursuant to this Agreement shall be kept in strict confidence and will not be disclosed to any other unrelated person without Client’s prior consent, unless such disclosure is required by law. Signator’s Notice of Privacy Policy is attached to this Agreement. 8. ASSIGNMENT This Agreement may not be assigned by any party without the prior consent (which consent may be provided via negative consent following full and fair disclosure of all material facts) of the other party.
In formulating the financial plan/consulting recommendations, Advisor will consider primarily the financial products offered through or approved by Signator. As a result, equity products recommended by Advisor in connection with Client’s financial plan/ consulting recommendations may only consist of financial products that have been approved by Signator.
9. TERMINATION Either party may terminate this Agreement at any time by giving a written notice of termination to the other party as provided in paragraph 15 of this Agreement. The termination will be effective upon receipt of the written notice by the other party (“Termination Date”).
4. RISK ACKNOWLEDGMENT Client recognizes that the financial plan/consulting services described in this Agreement involves Advisor’s judgment and that his or her views regarding the economy and the securities markets, like all predictions of future events, cannot be guaranteed to be accurate. Client represents that no party to this Agreement has made any guarantee, either oral or written, that Client’s investment objectives will be achieved.
If the Client terminates the Financial Planning Services portion of this Agreement within five business days of its signing, the Client will receive a full refund of all fees. If this Agreement is terminated after five business days of its signing, any prepaid fees will be prorated and the unused portion will be returned to the Client. 10. SEVERABILITY If any provision of this Agreement shall be held to be, or shall be made, non-enforceable by any statute, rule, regulation, decision of any tribunal or otherwise, such provision shall be automatically reformed and construed so as to be valid, operative, and enforceable to the maximum extent permitted by law or equity while most nearly preserving its original intent. The invalidity of any provision of this Agreement shall not render invalid the remainder of this Agreement and, to that extent, the invalid provision of this Agreement shall be deemed to be severable.
Client understands that the financial plan is designed as a long-term investment program and that asset withdrawals may impair the achievement of Client’s investment objectives. 5. ANTI-HEDGE CLAUSE STATEMENT The federal and state securities laws impose liabilities under certain circumstances on persons who act in good faith, therefore nothing in this agreement will constitute a waiver of any client’s rights under common law or federal securities laws. 6. QUALIFIED PLANS (Only) In formulating the financial plan/consulting recommendations for Client’s qualified plan assets, Advisor will consider the information Client provides Advisor concerning Client’s assets and investments that are not part of the qualified plan. In formulating the financial plan/ consulting recommendations for Client’s assets that are not part of the qualified plan, Advisor will take into account Client’s qualified plan assets. With respect to the qualified plan assets, Advisor will make suggestions only to asset allocation of the account. Advisor will be compensated for his/her advice with respect to Client’s qualified plan assets and, if applicable, for his/her investment advice with respect to Client’s non-qualified plan assets.
11. JOINT AND SEVERAL OBLIGATIONS In the event that two or more individuals execute this Agreement as “Client,” each such individual agrees to be jointly and severally bound by each obligation of Client provided for herein. 12. GOVERNING LAW This Agreement, and all of the rights and obligations of the parties hereto, shall be governed by and construed in accordance with the laws of the State of Florida without giving effect to any conflicts of law principles, to the extent that such state law is not preempted by the provisions of any law of the United States, including, without limitation, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940 (“Advisers Act”), and the rules and regulations of the Securities and Exchange Commission thereunder.
4
13. ARBITRATION This agreement contains a pre-dispute arbitration clause. By signing an arbitration agreement the parties agree as follows:
14. ENTIRE AGREEMENT This Agreement supersedes any and all prior agreements between the parties hereto with respect to the subject matter contained herein and constitutes the entire agreement between the parties. TFA has the right to amend this Agreement by modifying or changing the terms and conditions of this Agreement by mailing a written notice of the modification or change as provided in paragraph 15 of this Agreement. Such written notice shall include the effective date of such modification or change, which shall not be effective prior to 30 days from the date of such written notice. Client’s use of the account after the effective date of the modification or change shall constitute Client’s acknowledgement and agreement to the terms of such modification or change.
■ ALL PARTIES TO THIS AGREEMENT ARE GIVING UP THE RIGHT TO SUE EACH OTHER IN COURT, INCLUDING THE RIGHT TO A TRIALBY JURY, EXCEPT AS PROVIDED BY THE RULES OF THE ARBITRATION FORUM IN WHICH A CLAIM IS FILED.
■ ARBITRATION AWARDS ARE GENERALLY FINAL AND BINDING; A PARTY’S ABILITY TO HAVE A COURT REVERSE OR MODIFY AN ARBITRATION AWARD IS VERY LIMITED.
■ THE ABILITY OF THE PARTIES TO OBTAIN DOCUMENTS, WITNESS STATEMENTS, AND OTHER DISCOVERY IS GENERALLY MORE LIMITED IN ARBITRATION THAN IN COURT PROCEEDINGS.
15. NOTICES Notices and reports provided for herein, in the case of Signator, shall be mailed to Attn: Signator Ops P.O. Box 55964, Boston, MA 02205. Notices and reports provided for herein, in the case of Client, shall be transmitted by U.S. mail, overnight delivery, facsimile transmission, email or other electronic delivery in accordance with normal business practices. Notices and reports shall be delivered to Client at the following address:
■ THE ARBITRATORS DO NOT HAVE TO EXPLAIN THE REASON(S) FOR THEIR AWARD.
■ THE PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF INDIVIDUALS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY. CORPORATED INTO THIS AGREEMENT.
■ THE RULES OF SOME ARBITRATION FORUMS MAY IMPOSE TIME LIMITS FOR BRINGING A CLAIM IN ARBITRATION. IN SOME CASES, A CLAIM THAT IS INELIGIBLE FOR ARBITRATION MAY BE BROUGHT IN COURT. THE RULES OF THE ARBITRATION FORUM IN WHICH THE CLAIM IS FILED, AND ANY AMENDMENTS THERETO, SHALL BE INCORPORATED INTO THIS AGREEMENT. No person shall bring a putative or certified class action to arbitration, nor seek to enforce any pre-dispute arbitration agreement against any person who has initiated in court a putative class action; or who is a member of a putative class who has not opted out of the class with respect to any claims encompassed by the putative class action until: (i) the class certification is denied; or (ii) the class is decertified; or (iii) the customer is excluded from the class by the court. Such forbearance to enforce an agreement to arbitrate shall not constitute a waiver of any rights under this agreement except to the extent stated herein. In consideration of opening one or more advisory accounts for the undersigned, the undersigned agree(s) that any controversy between us arising out of or relating to my (our) account, transactions with or for me (us), or this agreement or the breach thereof shall be settled by arbitration in accordance with the rules, then established, of the Financial Industry Regulatory Authority (FINRA). Nothing in this agreement shall limit or contradict the rules of any selfregulatory organization nor limit the ability of any party to file any claim in arbitration or limit the ability of an arbitration panel to make any award. 5
BY SIGNING BELOW CLIENT ACKNOWLEDGES RECEIVING SIGNATOR’S FORM ADV, PART 2A, SII WELCOME BROCHURE,THE ADVISOR’S FORM ADV, PART 2B AND SIGNATOR’S PRIVACY POLICY NOTICE. THIS AGREEMENT CONTAINS A PRE-DISPUTE ARBITRATION CLAUSE AS SET FORTH IN SECTION 13 (THIRTEEN) ABOVE. CLIENT ACKNOWLEDGES RECEIVING A COPY OF THIS AGREEMENT.
Client’s Signature
Date mm/dd/yyyy
Client’s Name (Print)
Joint Client’s Signature
Date mm/dd/yyyy
Joint Client’s Name (Print)
Street Address
Advisor’s Signature
Date mm/dd/yyyy
Supervisor’s Signature
Date mm/dd/yyyy
Supervisor’s Name (Print)
Securities and Investment Advisory Services offered through Signator Investors, Inc. Member FINRA, SIPC, a Registered Investment Adviser, Boston, MA 02116.
SIIFPCA 07/16
