Investment Advisor Contract Template for Hong Kong

The Investment Advisor Contract is essential for any investment advisory relationship in Hong Kong's financial services sector. This document is required when an SFC-licensed investment advisor (whether an individual or company) provides professional investment advice to clients. It must comply with Hong Kong's Securities and Futures Ordinance and the SFC's Code of Conduct, incorporating mandatory risk disclosures, client protections, and regulatory requirements. The contract defines the scope of advisory services, fee structures, fiduciary duties, and risk management protocols while addressing data privacy under Hong Kong's Personal Data (Privacy) Ordinance. It's particularly crucial for establishing clear boundaries of the advisory relationship and ensuring regulatory compliance in Hong Kong's dynamic financial market.

1. Parties: Identification of the investment advisor and the client, including licensing details and registration numbers

2. Background: Context of the agreement and brief description of the investment advisory services to be provided

3. Definitions: Key terms used throughout the agreement, including regulatory and technical terms

4. Appointment and Scope of Services: Detailed description of investment advisory services, including any limitations or restrictions

5. Regulatory Compliance: Compliance with SFC requirements and other applicable Hong Kong regulations

6. Representations and Warranties: Statements of fact and promises made by both parties regarding their capacity and authority

7. Fees and Payment Terms: Structure of advisory fees, payment schedule, and other charges

8. Client's Obligations: Responsibilities of the client, including providing accurate information and prompt communication

9. Risk Disclosures: Mandatory risk warnings and acknowledgments required by Hong Kong regulations

10. Confidentiality and Data Protection: Obligations regarding client data protection and confidential information

11. Limitation of Liability: Extent and limitations of the advisor's liability

12. Termination: Conditions and procedures for terminating the advisory relationship

13. General Provisions: Standard contractual terms including governing law, notices, and amendments