Investment Advisory Agreement: Key Terms
A transparent overview of our operational and legal relationship.
At Sierra Crest Advisors, LLC, we believe that a strong financial partnership requires absolute clarity from day one. Before we assume management of your wealth, we require all clients to execute a formal, written Investment Advisory Agreement (IAA).
To help you understand the mechanics of this relationship prior to formal onboarding, we have summarized the material provisions of our standard agreement below. These terms define our fiduciary responsibilities, your rights as a client, and the operational framework of our services.
1. Scope of Services & Discretionary Authority
Under the IAA, you grant Sierra Crest Advisors "discretionary authority" over your designated accounts. This provides us with the Limited Power of Attorney necessary to determine which securities to buy or sell, and the quantity of those securities, without requiring your prior approval for each individual transaction. All discretionary trading is strictly guided by the personalized risk parameters, investment objectives, and wealth blueprint we establish together.
2. Independent Custody of Assets
For your absolute protection, Sierra Crest Advisors does not take physical custody of your funds or securities. All client assets are held by an independent, qualified, third-party custodian (such as Charles Schwab & Co., Inc. or Fidelity). Our access to your account is strictly limited to executing trades and deducting our mutually agreed-upon advisory fees. You will receive account statements directly from the custodian, never just from our firm.
3. Fees, Billing, and Deduction
Our compensation is based strictly on the fee schedule outlined in the agreement and our Form ADV. Portfolio management fees are billed quarterly in advance, calculated based on the market value of your account on the last business day of the preceding quarter. By signing the IAA, you authorize your independent custodian to deduct these fees directly from your account and remit them to Sierra Crest Advisors. You may revoke this authorization at any time.
4. Termination of the Agreement
You are never locked into a long-term commitment. Either party may terminate the Investment Advisory Agreement at any time by providing written notice to the other party. Upon termination, any unearned, prepaid advisory fees will be promptly prorated and refunded to your account based on the number of days remaining in the billing quarter. Termination of our agreement does not automatically close your custodial account or liquidate your securities.
5. Governing Law & Arbitration
The agreement is governed by the laws of the State of Nevada. To ensure efficient and private resolution of disputes, the IAA includes a binding arbitration clause. Any controversy or dispute arising out of or relating to the agreement shall be settled exclusively through arbitration administered by the American Arbitration Association (AAA) in Clark County, Nevada. Note: This arbitration clause does not constitute a waiver of any rights you may have under federal or state securities laws.
Important Legal Notice
The information provided on this page is a high-level summary intended solely for educational and informational purposes. It does not constitute a contract, nor does it encompass all the legal provisions, definitions, and disclosures contained within the actual Investment Advisory Agreement. In the event of any discrepancy between this summary and the formal Investment Advisory Agreement executed between you and Sierra Crest Advisors, LLC, the terms of the fully executed written agreement shall explicitly control.