FINANCIAL ADVICE AGREEMENT
This Financial Advice Agreement (“Agreement”) is made and entered into between HOLLAND ADVISORY SERVICES, INC. (hereinafter referred to as the “Adviser”), a Florida Corporation, having its principal place of business at 700 West Granada Boulevard, Ormond Beach, Florida 32174 and (hereinafter referred to as “Client”) whose address is .
WHEREAS, Adviser is a Registered Investment Adviser in the business of providing financial and investment advisory services; Client desires to retain Adviser to obtain certain financial recommendations, in accordance with the terms and conditions of this Agreement.
WHEREAS, this Agreement is an engagement for financial advice, which involves recommendations tailored to Client’s goals and objectives. Recommendations may be for Client to take or refrain from taking a specific action, such as selling assets and/or purchasing other assets, including insurance products and investment advisory services.
WHEREAS, this engagement is not to be considered financial planning or a comprehensive financial engagement that takes into consideration a broad range of subjects or Client’s complete
financial picture; rather, Client has requested Adviser’s assistance with the specific services selected below.
WHEREAS, Adviser has informed Client of the benefits of financial planning, but Client does not agree to engage Adviser for financial planning services. Client understands that, by deciding not to enter into an agreement for financial planning, Adviser’s services will be limited to financial advice and/or services that do not require application of the financial planning process.
WHEREAS, all services performed under this Agreement are one-time engagements. This means Adviser will not monitor or update the financial recommendations.
NOW THEREFORE, Agreement sets forth the terms by which Client hires Adviser to provide the following recommendations (as indicated by initialing next to the service desired):
Life Insurance - Adviser will analyze Client’s situation and provide life insurance recommendations.
Disability Insurance - Adviser will analyze Client’s situation and provide disability insurance recommendations.
Long-term Care Insurance - Adviser will analyze Client’s situation and provide long-term care recommendations.
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Annuity - Adviser will evaluate Client’s risk tolerance, income needs, and time frame to
determine whether Client should purchase an annuity. Based on Client’s situation, Adviser will then follow Adviser’s proprietary selection process to arrive at which type of annuity, insurance company, and/or specific product would be appropriate for Client.
Investment - Adviser will provide written investment recommendations based upon Client’s risk tolerance, investment objectives, and time frame. Recommendations will be tailored to Client’s need for income and will consider tax treatment of Client’s various investment accounts.
Reallocation – Adviser will provide written allocation recommendations for Client’s retirement plan or other accounts. The recommendations will be based upon Client’s risk tolerance and investment objectives as understood and documented by Adviser.
ANALYSIS: In making the Client’s selected recommendations, Adviser will analyze various aspects of Client’s financial situation, such as asset allocation, portfolio risk and degree (or lack) of investment diversification; bond maturities, credit risk, and interest rate risk; concentration of individual investment holdings; ratings of investment holdings; overall and individual holdings fees; annuity product rates, riders, and fees; sequence-of-return risk; and compatibility of current financial position with stated financial goals and objectives
ADVISER FEES: Financial planning fees may be charged on an hourly or flat fee basis. Adviser’s total fee for this engagement is based on the expected time required for Adviser to provide the selected services and may be reduced if Adviser is to perform multiple services under one engagement. Client agrees to pay Adviser a fee of $ upon delivery and/or presentation of Adviser’s final work product to Client. Checks should be made payable to “Holland Advisory Services, Inc.”
DISCIPLINARY HISTORY: We have no financial commitment that impairs our ability to meet contractual and fiduciary commitments to you and neither our company nor our CFP® professionals have been the subject of any public discipline or bankruptcy proceedings. Information about brokerage firms and individual brokers is publicly available online through FINRA’s Broker Check Program at https://brokercheck.finra.org/ or by calling toll-free at (800) 289-9999. Information about certain investment adviser firms is available through the SEC’s Investment Adviser Public Disclosure Program at https://www.adviserinfo.sec.gov/IAPD/default.aspx . Information about brokerage firms, individual brokers, investment adviser firms and individual investment advisers is also available through the Florida Office of Financial Regulation. To search for additional material and public history on any of Adviser’s CERTIFIED FINANCIAL PLANNER™ professionals, please visit www.letsmakeaplan.org/choose-a-cfp-professional/verify-a-cfp-professional or www.pacer.gov. Visit investor.gov/CRS for a free and simple search tool to research us and our financial professionals.
DATA-GATHERING: Client agrees to candidly discuss his/her financial circumstances, goals and projected future needs with Adviser. Client recognizes that Adviser’s work on his/her behalf depends upon the information which Adviser has concerning Client’s situation and upon his/her participation in formulating an appropriate financial strategy. Client agrees to furnish all requested information regarding his/her financial condition and financial goals, which Adviser requires to perform the above services. Depending on the services selected, Adviser may request that Client provide Adviser with completed questionnaires, a driver license, income/estate/gift tax returns, investment statements,
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insurance policies, projected social security income, mortgage payments, wills, trust documents, or other documents, to begin the data-gathering process.
CONFIDENTIALITY: Any original documents supplied by Client will be returned when the recommendations are complete. Copies of documents, papers and other information may be retained by us in Client’s file for compliance purposes. All information will be held confidentially and will not be disclosed to third parties, except in the providing of services under this Agreement, as required by law, or as agreed upon in writing
FIDUCIARY RESTRAINT AND CLIENT BEST INTEREST: In keeping with its fiduciary duty, Adviser is required to avoid conflicts of interest and/or disclose and properly manage conflicts, after obtaining the client’s informed consent, when providing financial advice. When acting under a conflict of interest, Adviser continues to have a duty to act in a client’s best interest and place the
client’s interests above those of Adviser. Accordingly, Adviser shall exercise fiduciary restraint in the face of incentives and conflicts in order to act in Client’s best interest under this Agreement.
CONFLICTS OF INTEREST DISCLOSURE & WAIVER: A conflict of interest exists when a reasonable person would conclude that a financial interest affects a firm’s judgment when making recommendations. Inherent conflicts of interest based on our corporate structure and business model, which could affect the client relationship with Adviser, include:
Affiliated Entities: The following entities are affiliated and share common ownership with Adviser: Holland Insurance Services, Inc.; Holland, Tacinelli, CPAs, P.A.; Holland Tax & Accounting, Inc.; David D. Holland, CPA; Holland Productions, Inc., d/b/a/ PlanStrongerTV™; and Holland Business Brokers, Inc. Recommendations for courses of action, services, or products through one or more of these entities creates an incentive to make recommendations solely for the increase in revenue.
Receipt of Incentives: Adviser may receive services from third parties, including but not limited to, marketing, training, technology, and/or education.
Business Relationships: Adviser or its affiliated entities may have business relationships with third parties to which Adviser may refer clients. This creates an incentive for Adviser to make referrals to these parties in lieu of others solely for the continued business, even though no referral compensation is shared between parties.
Spousal Conflict: A conflict of interest arises when spouses, who are both existing clients of Adviser, wish to continue their advisory relationship, despite a future or ongoing dissolution of marriage. If this situation arises, Adviser will determine whether financial services can be provided without compromising fiduciary duty and professional abilities to act in each respective client’s best interests. If Adviser determines that a relationship cannot continue with both clients, Adviser will terminate its relationship with one or both clients.
CONSENT TO CONFLICTS OF INTEREST: Client(s) understand(s) Adviser’s conflicts of interest and the business practices that give rise to such conflicts and give(s) informed consent, by signing this Agreement, to the conflicts described herein.
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LIMITATION OF LIABILITY: Since the financial services referred to herein are advisory in nature, Client expressly understands and agrees that:
Adviser shall not be held liable for Client’s failure to inform Adviser, in a timely manner, of any material changes in Client’s financial circumstances, which might affect Adviser’s recommendations.
In the absence of fraud, willful misconduct, or willful negligence on Adviser’s part, Adviser shall not be responsible, in any way whatsoever, for any loss incurred by reason of Client’s acts or omissions.
All analyses and recommendations will be based on the information submitted and verbally communicated to Adviser. Adviser shall not be required to verify any information obtained from Client or from Client’s other advisers (e.g., attorney, accountant, insurance agent). Adviser is expressly authorized to rely on such information.
Adviser shall not be held liable in any way relating to the projection of performance of any investment account, including any outcome of a decision made in connection with the full or partial implementation of any of the recommendations made by Adviser, provided that, Adviser has complied with all federal and state laws and/or regulations controlling the provision of investment advisory services. Federal and state securities laws impose liabilities under certain circumstances on persons who act in good faith and, therefore, nothing in this Agreement shall, in any way, constitute a waiver or limitation of any rights that Client or Adviser may have under federal and state securities laws.
Advice given under this Agreement will be based on economic and tax factors, as well as
Client’s circumstances at the time the services were rendered. Since much of financial advice is based on events and economic outcomes in the future, Adviser must make assumptions about future investment returns, inflation, tax policy, tax rates, etc. Adviser offers no assurances or guarantees that any such projections will be achieved.
Adviser provides financial services for numerous clients at different times, which may vary in scope and complexity. Accordingly, Adviser may give advice and act with respect to any of its other clients that may differ from advice given to Client.
In addition, this Agreement shall be applicable only to the financial recommendations provided to Client
Upon Client’s request, Adviser may refer Client to attorneys or other third-party professionals, who are known by Adviser. All such referrals are made at “arms-length;” no compensation is shared between Adviser and any such third parties. Client is not obligated to use any particular professional.
ARBITRATION: Any controversy arising out of or relating to this Agreement or the breach thereof, will be settled by arbitration in accordance with the American Arbitration Association’s code of arbitration rules and procedures in effect at the time. Client understands that this agreement to
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arbitrate does not constitute a waiver of the right to seek a judicial forum, where such a waiver would be void under state or federal securities laws. The award of the arbitration, or a majority of it, will be final, and judgment upon the award rendered may be entered in any state or federal court having jurisdiction. At least one member of the panel must have five years’ experience in the financial services industry. Arbitration of any other hearing or legal proceeding between Adviser and Client will take place in a mutually agreed upon location. It is further understood and agreed to that, pursuant to the above arbitration clause: 1. arbitration is final and binding on all parties; 2. parties are waiving their right to seek remedies in court, including the right to jury trial, except where such waiver would be void under federal securities law; 3. pre-arbitration discovery is generally more limited than and different from a court proceeding; 4. the arbitrator’s award is not required to include factual or legal reasoning and any party’s right to appeal or seek modification of rulings by the arbitrators is strictly limited; 5. the panel of arbitrators will include a minority of arbitrators who were or are affiliated with the securities industry. In addition, no person shall bring a punitive or certified class action to arbitration, or seek to enforce any pre-dispute arbitration agreement, against any person who has initiated in court a punitive class action, or is a member of a punitive class who has not opted out of the class with respect to any claim encompassed by the punitive 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.
SEVERABILITY: If any term, provision, duty, undertaking or obligation of this Agreement shall be held or made non-enforceable by a statute, rule, regulation, decision of a tribunal or otherwise, such provision shall be automatically reformed and construed 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 part of this Agreement shall not render invalid the remainder of this Agreement and, to that extent, the provision of this Agreement shall be deemed to be severable.
TERM: This Agreement and the services provided hereunder shall be ongoing until terminated by
either party as set forth in the “Termination” clause or upon completion, delivery, and payment of the work product by Adviser to Client.
TERMINATION: Client has the right to terminate this Agreement, for any reason, at any stage, upon written notice, subject to the following: 1. Within five (5) days after entering into this Agreement, Client may terminate this Agreement without payment of any fee or penalty. Any deposit collected will be fully and promptly returned. 2. After five (5) days, either party may terminate this Agreement by written notification to the other party. Client will be entitled to a pro-rated refund of any prepaid deposit which Adviser has not earned, and Adviser will be entitled to any fees that were earned and not yet received from Client. Adviser shall provide an accounting of its time to support the refund or additional charges due.
ASSIGNMENT: Agreement is not assignable without consent of all parties.
NOTICES: All notices required or permitted to be given under this Agreement will be sent by certified mail to Adviser at: 700 West Granada Boulevard, Ormond Beach, Florida 32174; or, if to Client, at Client’s last known address contained in Adviser’s files.
CAPTIONS: Paragraph headings are for convenience only and are not of substantive effect.
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ENTIRE AGREEMENT: This Agreement contains the entire understanding of the parties with respect to the subject matter contained herein. Any oral understandings are incorporated and merged into Agreement. No representations were made or relied upon by either party except as set forth herein. This Agreement may not be changed unless Client and Adviser agree to the change in writing. The validity, interpretation, and performance of this Agreement will be governed by and construed under the laws of the State of Florida and the Securities and Exchange Commission in a manner consistent with the Investment Advisers Act of 1940 and the rules and regulations promulgated thereunder.
EXECUTION: I/We have read the above Agreement and the Parties hereto have duly executed this Agreement this day of 20 .
By: Client Signature (Owner/Trustee) Client Name (Print or Type)
By: Client Signature (Owner/Trustee) Client Name (Print or Type)
Holland Advisory Services, Inc. Registered Investment Adviser
By: Investment Adviser Representative Signature Investment Adviser Representative Name
By: President / Compliance Signature President / Compliance Name and Title
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