The Advisory Agreement serves as the primary legal instrument for establishing professional advisory relationships in Malaysia, whether for business consulting, financial advisory, or other professional services. This document is essential when engaging external advisors or consultants and must comply with Malaysian legal requirements, including the Contracts Act 1950, Capital Markets and Services Act 2007, and industry-specific regulations. The Advisory Agreement typically includes detailed service specifications, fee structures, performance standards, confidentiality obligations, and risk allocation provisions. It is particularly important for regulated industries and professional services firms operating in Malaysia, where specific regulatory compliance requirements may apply to advisory relationships.
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1. Parties: Identification and details of the advisor and the client
2. Background: Context of the advisory relationship and general purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of advisory services to be provided
5. Term and Engagement: Duration of the agreement and commitment terms
6. Fees and Payment: Fee structure, payment terms, expenses, and invoicing
7. Obligations of the Advisor: Advisor's duties, responsibilities, and service standards
8. Client's Obligations: Client's responsibilities and commitments
9. Confidentiality: Confidentiality obligations and data protection requirements
10. Representations and Warranties: Standard warranties and representations from both parties
11. Limitation of Liability: Scope and limits of advisor's liability
12. Termination: Conditions and process for ending the agreement
13. Dispute Resolution: Process for handling disputes and jurisdiction clause
14. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
1. Intellectual Property Rights: Required when advisory services may result in creation of IP
2. Regulatory Compliance: Needed for regulated industries or specific compliance requirements
3. Force Majeure: Optional protection against unforeseen circumstances
4. Non-Competition: Required when protecting against competitive conflicts
5. Insurance: Needed when specific insurance requirements apply
6. Sub-contractors: Required when services may be delegated to third parties
7. Assignment: When transfer of rights needs to be specifically addressed
8. Data Protection: Detailed section needed when handling sensitive personal data
1. Schedule 1 - Scope of Services: Detailed breakdown of advisory services to be provided
2. Schedule 2 - Fee Schedule: Detailed fee structure, rates, and payment terms
3. Schedule 3 - Service Levels: Specific performance metrics and service standards
4. Schedule 4 - Key Personnel: List of key team members and their roles
5. Schedule 5 - Compliance Requirements: Specific regulatory or compliance obligations
6. Appendix A - Required Forms: Standard forms or templates to be used
7. Appendix B - Reporting Templates: Templates for regular reporting requirements
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