[Series 65] 72, Advisory Contracts and Client Agreements

[Series 65] 72, Advisory Contracts and Client Agreements

From Open Exam Prep by Ran Chen, EA, CFP®

June 4, 2026 · 2 min

About this episode

This episode covers the essentials of advisory contracts and client agreements in the context of financial advisory services.

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Advisory contracts must be in writing and detail the services, term, fee formula, and any discretionary authority. - A change in the majority ownership of an advisory firm is considered an "assignment" and requires client consent. - Performance-based fees are prohibited unless the client is a "qualified client" with at least $1.1 million AUM or a $2.2 million net worth. - Contracts cannot contain "hedge clauses" that require a client to waive their legal rights. - Upon termination, clients are entitled to a pro-rata refund of any prepaid, unearned advisory fees. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

People in this episode

Host: Ran Chen

Topics covered

  • advisory contracts
  • client agreements
  • performance-based fees
  • client consent
  • refund policies

Keywords

  • advisory contracts
  • client agreements
  • performance-based fees
  • qualified client
  • refund policies

Mentioned in this episode

Organizations: Open Exam Prep, YouTube Channel

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