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An Advisory Agreement sets out the terms when someone (the advisor) provides professional guidance, expertise, or recommendations to another party (the client). Common in New Zealand's financial sector, these agreements spell out important details like the scope of advice, fees, and how confidential information will be handled.

Under NZ's Financial Markets Conduct Act and Financial Advisers Act, these agreements must clearly outline advisor obligations, any potential conflicts of interest, and dispute resolution processes. They're especially crucial for regulated financial advice, where advisors need to follow strict duties of care and disclosure requirements to protect their clients.

Consider putting an Advisory Agreement in place before receiving any professional guidance or recommendations, especially for financial, business, or strategic advice. This agreement becomes essential when engaging consultants, financial advisors, or industry experts who will help shape important decisions or provide ongoing support.

The agreement proves particularly valuable when dealing with sensitive information, complex financial matters, or when advisor recommendations could significantly impact your business outcomes. Under NZ regulations, it's required for regulated financial advice services and helps protect both parties by clearly defining responsibilities, fee structures, and liability limits before work begins.

• General Business Advisory: Used for ongoing business consulting, strategic planning, and management advice. Includes scope of services, reporting requirements, and decision-making authority limits.
• Financial Advisory: Focused on investment advice, portfolio management, and financial planning. Must comply with NZ Financial Markets Authority requirements and include specific disclosures.
• Technical Advisory: For specialized industry expertise, often including IP protection clauses and specific deliverables.
• Project-Based: Time-limited agreements with clear milestones, deliverables, and completion criteria.
• Board Advisory: Structured for governance advice, including conflict of interest provisions and confidentiality requirements.

• Advisory Firms: Professional service providers who offer expertise in finance, business strategy, or specialized fields. They draft and customize Advisory Agreements to protect their interests.
• Client Companies: Businesses seeking professional guidance, from startups to established corporations. They review and negotiate terms to ensure alignment with their needs.
• Legal Counsel: Lawyers who review or draft agreements to ensure compliance with NZ regulations and protect both parties' interests.
• Financial Advisers: Licensed professionals providing regulated financial advice under FMA oversight.
• Company Directors: Key decision-makers who approve and sign agreements on behalf of their organizations.

• Scope Definition: Clearly outline the specific advisory services, deliverables, and timeframes to be covered.
• Party Details: Gather full legal names, contact information, and relevant qualifications or licenses of both advisor and client.
• Fee Structure: Document all costs, payment terms, and any performance-based compensation arrangements.
• Compliance Check: Verify FMA requirements if providing regulated financial advice in NZ.
• Key Terms: Define confidentiality obligations, intellectual property rights, and termination conditions.
• Risk Management: Our platform helps generate comprehensive agreements that include all necessary legal protections and compliance elements.

• Parties and Services: Complete identification of advisor and client, with detailed scope of advisory services.
• Fee Structure: Clear payment terms, rates, and billing procedures compliant with NZ consumer protection laws.
• Term and Termination: Agreement duration, renewal options, and conditions for ending the relationship.
• Confidentiality: Detailed provisions for handling sensitive information under NZ Privacy Act requirements.
• Regulatory Compliance: FMA-mandated disclosures and duties for financial advice services.
• Liability Limits: Clear boundaries of advisor responsibility and indemnification terms.
• Dispute Resolution: NZ-specific procedures for handling disagreements and jurisdiction details.

An Advisory Agreement differs significantly from an Agency Agreement, though both involve professional relationships. The key distinctions lie in the nature of authority and representation granted to the professional party.

• Authority Level: Advisory Agreements limit the professional to providing recommendations and guidance, while Agency Agreements grant power to act on behalf of the principal and bind them legally.
• Decision Making: Under an Advisory Agreement, the client retains all decision-making power. With Agency Agreements, the agent can make binding decisions within agreed parameters.
• Liability Scope: Advisors typically face liability only for the quality of their advice, while agents bear responsibility for actions taken on behalf of the principal.
• Regulatory Framework: Advisory Agreements often fall under NZ's Financial Markets Conduct Act for financial advice, while Agency Agreements are governed primarily by common law principles of agency.