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The Financial Advisor Agreement is a crucial document used to formalize the relationship between licensed financial advisors and their clients in Hong Kong. It is required when providing regulated financial advisory services under the Securities and Futures Ordinance (SFC) framework. This agreement outlines the scope of services, fee structures, and mutual obligations while ensuring compliance with Hong Kong's regulatory requirements, including SFC licensing conditions, conduct rules, and client protection measures. The document is particularly important as it establishes clear boundaries of the advisory relationship, risk management protocols, and compliance procedures, serving as both a legal safeguard and a regulatory compliance tool. It must be tailored to reflect whether the client qualifies as a Professional Investor and incorporate specific requirements for different types of financial advisory services being offered.

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

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Key terms used throughout the agreement, including regulatory-specific terminology

4. Appointment and Scope of Services: Detailed description of the financial advisory services to be provided and the nature of the appointment

5. Duties and Responsibilities of the Financial Advisor: Comprehensive outline of the advisor's obligations, including regulatory duties and standard of care

6. Client's Obligations and Representations: Client's responsibilities, including providing accurate information and required documentation

7. Fees and Payment Terms: Detailed fee structure, payment schedule, and any additional charges

8. Confidentiality and Data Protection: Obligations regarding client information handling and compliance with PDPO

9. Conflicts of Interest: Procedures for identifying, disclosing, and managing potential conflicts

10. Risk Disclosures: Mandatory risk warnings and acknowledgments required by SFC regulations

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Liability and Indemnification: Extent of advisor's liability and mutual indemnification provisions

13. Compliance with Laws: Commitment to comply with relevant regulations and maintaining necessary licenses

14. Notices: Process for formal communications between parties

15. General Provisions: Standard clauses including governing law, entire agreement, and amendments