Keeping advisory agreements current: amendments, versions and a yearly check
A small RIA keeps advisory agreements current by recording which version of its agreement each client signed, filing every amendment with the original, keeping a short note of what each version says about fees, billing timing and services, and checking once a year that each client's agreement still matches how they're billed and served. When the firm changes its agreement template, decide whether existing clients move to it and record who has.
Most small firms have updated their advisory agreement template two or three times over the years. Clients who joined at different times signed different versions. A few have handwritten amendments. One or two signed agreements are, honestly, somewhere in an old inbox. Then someone asks which billing terms apply to a particular client, and the answer takes an afternoon.
What should you know for every client?
| Item | Why |
|---|---|
| Which agreement version they signed, and when | Different versions can say different things about fees and timing |
| Every amendment, with its effective date | Fee changes and service changes often live here |
| Where the signed copies are | On the client's record, not an inbox |
| A one-line summary of the key terms | Rate or schedule, billing timing, exclusions, termination notice |
Keep a short version table
For each version of your agreement template, write down the date it was introduced and what it says about fees, billing timing, exclusions, services and termination. Then any client's terms can be checked quickly by version.
The yearly check
- List clients by agreement version.
- For each, compare the key terms with how they were last billed and served.
- Find any missing signed copies or amendments.
- Decide fixes: an amendment, a billing correction, or a new agreement.
- Record what changed and when.
A worked example
Take a hypothetical two-person RIA with three agreement versions in use. The operations lead builds a one-page version table, then lists every household by version. Two clients on the oldest version are still billed in advance while their agreement says so, which is fine, but the firm's brochure describes arrears only, so the compliance consultant is consulted. One signed agreement can't be found; the advisor gets a new one signed. Each client's record now shows its version and amendments with dates.
What are the common gaps?
- No record of which version each client signed.
- Amendments kept separately from the original.
- Missing signed copies discovered only when needed.
- Template changes rolled out to new clients but never considered for existing ones.
When is this overkill?
If every client signed the same version and nothing has changed, a quick yearly glance is enough.
How Advorra fits
Advorra keeps each client's household, billing set-up with exclusions and every billing run on a billing blotter, with communications on the same record, so an agreement's terms and how the client was actually billed can be compared in one place. See the product page, or read about the advisory agreement, read by operations and brochure, agreement, bill.
One thing to do this week: count how many versions of your advisory agreement your current clients signed.
An operations routine, not legal or compliance advice.
Questions advisors ask
Do existing clients need to sign a new agreement when we update ours?
It depends on what changed and what your current agreement allows. Your attorney and compliance consultant can advise. Record which clients are on which version either way.
Where should amendments be kept?
With the original agreement, on the client's record, with the date each took effect.
What should we check each year?
That the fee, billing timing, exclusions and services in each agreement match what the client actually gets.
What if a client's agreement can't be found?
Treat it as a priority: locate it, or get a new one signed, and note what happened.
Is this legal advice?
No. It is an operations routine. Agreement wording is for your attorney.
See it on a demo firm
Advorra is practice software for independent RIAs: clients, models, IPS, billing and compliance records in one place, on top of the custodian you already use. Built by The CollabHub.
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