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An Advisory Agreement creates a formal relationship between an advisor and their client in Hong Kong, spelling out how the advisor will provide expertise, guidance, or consulting services. These agreements are common in financial services, where advisors help clients make investment decisions or manage their portfolios under Hong Kong's Securities and Futures Ordinance.

The agreement sets clear boundaries by detailing the advisor's responsibilities, fees, confidentiality obligations, and service duration. It protects both parties by establishing professional standards and limiting liability, while ensuring compliance with Hong Kong regulatory requirements, particularly those set by the Securities and Futures Commission for licensed financial advisors.

Put an Advisory Agreement in place before accepting guidance or consulting services from an expert advisor, especially in Hong Kong's financial sector. It's essential when bringing in investment advisors, strategy consultants, or industry specialists who will shape important business decisions or handle sensitive information.

The timing is crucial when engaging licensed financial advisors under SFC regulations, starting new consulting relationships, or receiving ongoing professional guidance. Having this agreement ready before sharing confidential data or accepting recommendations helps prevent misunderstandings about scope, fees, and responsibilities while ensuring regulatory compliance.

• Financial Consultant Contract: Specialized for regulated financial advisory services under SFC oversight, with detailed compliance and reporting requirements
• Startup Advisor Agreement: Tailored for early-stage companies, often including equity compensation and milestone-based terms
• Advisory Shares Agreement: Focuses on equity-based compensation for advisors, common in tech and startup ecosystems
• Advisor Contract: General-purpose agreement for business consulting and strategic guidance across industries

• Financial Advisors: Licensed professionals regulated by the SFC who provide investment advice and portfolio management services to clients
• Corporate Clients: Companies seeking strategic guidance, from startups to established firms, who engage advisors for business expertise
• Legal Counsel: In-house or external lawyers who draft and review agreements to ensure compliance with Hong Kong regulations
• Compliance Officers: Internal staff who monitor advisor relationships and ensure adherence to regulatory requirements
• Company Directors: Senior executives who approve and sign advisory agreements on behalf of their organizations

• Advisor Details: Gather professional credentials, SFC license numbers, and scope of expertise
• Service Scope: Define specific advisory services, deliverables, and performance metrics
• Compensation Terms: Document fee structure, payment schedule, and any equity arrangements
• Duration and Timeline: Specify engagement period, key milestones, and renewal options
• Compliance Requirements: Check relevant SFC regulations and industry-specific requirements
• Confidentiality Needs: List sensitive information and required protection measures
• Documentation Platform: Use our system to generate a compliant agreement that includes all essential elements

• Parties and Roles: Full legal names, addresses, and business registration details of advisor and client
• Service Description: Detailed scope of advisory services, deliverables, and performance standards
• Compensation Terms: Fee structure, payment schedule, expenses, and any equity arrangements
• Confidentiality: Data protection measures compliant with Hong Kong's PDPO requirements
• Term and Termination: Duration, renewal options, and conditions for ending the agreement
• Regulatory Compliance: References to relevant SFC regulations and licensing requirements
• Governing Law: Explicit statement of Hong Kong jurisdiction and dispute resolution process

An Advisory Agreement differs significantly from an Agency Agreement in several key aspects, though both involve professional services. While Advisory Agreements focus on providing guidance and expertise without decision-making authority, Agency Agreements create a relationship where one party can legally act on behalf of another.

• Authority Level: Advisors provide recommendations and expertise but cannot bind their clients to decisions, while agents have legal authority to represent and commit their principals
• Liability Scope: Advisory Agreements typically limit liability to the quality of advice given, whereas Agency Agreements involve broader liability for actions taken on behalf of the principal
• Regulatory Framework: Advisory Agreements in Hong Kong often fall under SFC regulations for financial advice, while Agency Agreements are governed by general contract and agency law principles
• Compensation Structure: Advisory fees are usually based on consultation time or project milestones, while agency relationships often involve commission-based or transaction-tied compensation