A PMS Advisory Agreement is a legal document that outlines the terms and conditions of an agreement between a Portfolio Management Services (PMS) provider and its client. The PMS provider is responsible for managing the investments of the client and providing investment advice that is tailored to the specific needs of the client.
This agreement is important for both parties as it defines the scope of work, expectations, fees and responsibilities of each party. Typically, the PMS Advisory Agreement outlines the following aspects:
Services Provided: This section details the services provided by the PMS provider to the client. It includes portfolio management, investment advice, and other services as agreed upon by both parties.
Investment Objectives: The investment objectives of the client are outlined in this section. The PMS provider must ensure that the investment strategies are aligned with the client`s investment objectives.
Fees: This section outlines the fees that the PMS provider charges for their services. The fees may vary depending on the investment amount, the duration of the contract, and the services provided.
Performance Benchmarks: The agreement should specify the performance benchmarks against which the performance of the investment will be measured. This helps to ensure that the PMS provider is meeting the expectations of the client.
Termination: The agreement should include a termination clause that outlines the conditions under which the contract can be terminated by either party.
Confidentiality: The PMS Advisory Agreement should have a confidentiality clause to protect the client`s information and prevent the PMS provider from disclosing confidential information to third parties.
Dispute Resolution: If disputes arise between the PMS provider and the client, the agreement should outline the procedures for resolving disputes.
In conclusion, a PMS Advisory Agreement is a crucial document that outlines the responsibilities, roles, and terms of agreement between a PMS provider and its clients. It is important to ensure that all the necessary elements are included in the agreement to avoid misunderstandings and disputes. If you are considering investing in PMS, it is vital to review the PMS Advisory Agreement and seek legal advice to ensure that it meets your expectations and objectives.