Advisory Service Agreement Retail Pkg | ARN Financial Advisors

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Advisory Service Agreement - Step 1 of 8

Dear Valued Client

Thank you for your time and interest in working with ARN Financial Advisors Pvt Limited.
We welcome and appreciate the opportunity to work as your securities and futures advisor.
We look forward to providing you premium quality service that will help you achieve your financial objectives.

The important information to fill up this agreement are as follows.

1. Please read the AGREEMENT and KYC Form before signing.

2. Provide Valid Copy of CNIC (both sides) or Passport first two pages (for foreign nationals).

(upload fields are at the bottom of form)

3. Corporate Clients must provide Company incorporation certificate.

4. The client must fill, and sign KYC Form himself/herself.

5. The client must sign all the pages of the agreement. Nine Signatures of Client are required in total.

6. Provide upload of the existing Portfolio Statement issued by the Broker / CDC along with latest Cash Book Report.

(upload fields are at the bottom of form)

7. Two male witnesses must sign on page 9 of the agreement and provide their valid CNIC copies.

(upload fields are at the bottom of form)

8. Provide other documentary evidence (Utility Bill / Driving License etc.) to verify address if the mailing / present address is different from CNIC.

(upload fields are at the bottom of form)

Client must provide their active Email Address and Mobile Number in the form fields below.

10. Pay minimum initial one-time fee of Rs. 195,000 along with the signed agreement.

The fees can be paid either via crossed cheque in favour of "ARN Financial Advisors Pvt Limited" or thru direct bank transfer.

Signature Area 1

Signature Client

Signature ARN Financial Advisors

This agreement is for Securities & Future advisory service made in Lahore on following date below

Contract Date

Client Name

(hereinafter reffered to as "Client" or "Investor")

With the mailing address:

Mailing Address

Please enter your current address where you can receive physical mail, if the address on your CNIC and mailing address are different, attach document proofs at the end of form.

AND

COMPANY: ARN Financial Advisors (Private) Limited, a company incorporated under the laws of Pakistan and licensed to provide Securities and Futures Advisory Services, having its registered office at 62 C2 Gulberg III Lahore, Pakistan, (hereinafter referred to as the ("Investment Advisor/ Company")

WHEREAS

A. The Client is an investor, interested in investment in securities and/or future contracts and wished to avail advisory services of the Company.

B. The lnvestment Advisor is engaged in the business of Securities and Futures Advisory Services and is duly licensed by the Securities & Exchange Commission of Pakistan (SECP) to provide its services to clients/investors and has agreed to provide advisory services to the Client.

NOW THEREFORE

The Client and the Company has agreed on the following terms and conditions.

1. Appointment as Advisor

1.1 The Client, in accordance with the applicable law hereby appoints the Company as his/her/its Investment Advisor, entirely at the risk of the Client.

1.2 The Client agrees that in consideration of the services provided by the Company, the Client shall, as and when demanded, pay to the Company an advisory fee/charges in terms of clause 6 below,

2. Services

2.1 The Company shall provide investment advisory services to the Client based on research and fundamental analysis of the securities on belt effort basis. The Services under this Agreement shall be limited to professional advice, provided after risk assessment procedure including risk aversion and risk capacity, with respect to securities and future contracts trading activity to be undertaken by the Client

2.2 In order to guide and advise the Client, the Company shall provide reports on current and potential investments and opportunities to the Client

2.3 The Services shall not in any way include or deemed to be inventing or making trading transactions on behalf of the Client Nor shall the Company act as securities broker for the Client All trading activities by the Client shall be sole responsibility of the Client, through his/her/its broker, selected by the Client.

2.4 The Services shall be limited only to a professional advice and shall not be binding on the Client and the Client shall be free to follow the advice of the Company or act otherwise

2.5 The advice given by the Company in terms of this Agreement shall in no way be taken, expressly or impliedly, as an assurance of any minimum, targeted or guaranteed returns on the investment made by the Client in pursuance of the advice. The Client understands that investment in securities and future contracts is a risk bearing activity and no returns, whatsoever can be guaranteed, nor the Company asserts or claims to offer any guaranteed returns to the Client.

3. Scope of Services

3.1 In general, pursuant to introductory meeting and risk assessment of the Client, the Company shall provide the following services to the Client: Investment advice on whether, which, the time at which or the terms or conditions on which, securities may be bought, sold, exchanged, or subscribed for.

3.2 Issue analyses or reports, for the purposes of facilitating the Client to make decisions on whether or the time at which or the terms or conditions on which, specific securities may be bought, sold, exchanged, or subscribed for.

3.3 Investment advice on whether, which, the time at which or the terms or conditions of which, futures contracts are to be entered.

3.4 Issue analysis of reports, for the purposes of facilitating the recipients of the analysis or reports to make decisions of whether, which,the time at which, or the terms or conditions on which, futures contracts are to be entered.

3.5 Review and prioritise goals and objectives for the Client in accordance with his/her/its risk profile.

3.6 Review the current investment portfolio of the Client and develop an asset / investment management Strategy.

3.7 Need-based consultations for twelve months from the date initial agreement signed

4. Limitation of Company Liability

4.1 The Company shall not be responsible for any loss, which a client may suffer by reason of any depletion in the value of the assets (securities and/or future contracts) under advice in the following conditions:

a) Fluctuation in asset value;

b) Non-performance or under-performance of the securities/future contracts; or

c) Overall market conditions due to any internal or external factors affecting the performance of the securities and futures market.

4.2 Any advice given to the Client shall in no way be treated as an accounting, legal, or tax advice. The Client shall personally be liable for any advice required for the purpose of accounting, legal or regulatory compliance or tax and shall seek such advice at his/her/its own cogt from the relevant experts.

5. Definition of Securities and Future Contracts

5.1 For the purposes of this Agreement "Securities" in the case of lifted instrument includes:

a) shares and Stock of a company (shares);
b) any instrument creating or acknowledging indebtedness which is issued or proposed to be issued by a company including, in

particular, debentures, debenture Stock, loan Stock, bonds, notes, commercial paper, sukuk or any other debt securities of a

company, whether constituting a charge on the assets of the company or not (debt securities);
c) loan Stock, bonds, sukuk and other instruments creating or acknowledging indebtedness by or on behalf of a government, central

bank or public authority (Government and public debt securities);
d) modaraba certificates, participation term certificates and term finance certificates;
e) any right (whether conferred by warrant or otherwise) to subscribe for shares or debt securities (warrants);
f) any option to acquire or dispose of any other security (options);
g) units in a collective investment scheme, including units in or securities of a trust fund (whether open-ended or closed end);
h) the rights under any depository receipt in respect of shares, debt securities and warrants (custodian receipts); and
i) any other instrument notified by the Securities and Exchange Commission of Pakistan to be securities for the purposes of

Securities Act 2015.

5.2 For the purposes of this Agreement the "Futures Contract" shall mean.

a) an arrangement where one party agrees to enter into a contract to deliver a specified quantity of a specified commodity or securities or financial instruments, to another party at a specified future time and at a specified price payable at that time; or

b) where the parties agree to discharge their obligations under the contract by settling the difference between the value of a specified quantity of a specified commodity or securities or financial instruments agreed at the time of the making of the contract and at a specified future time; or

c) such other futures contract or class of futures contracts or derivative contracts as prescribed by the Securities in paragraph (a), (b) or (c).

6. Advisory Fees

6.1 For the Services to be provided by the Company under this Agreement the Client shall be liable to pay advisory fee to the Company

a) The Company shall charged to the Client on subscription package basis

6.2 The Client shall make payment throug h banking channels. For online bank transfer the amount, Client shall transfer the payable amount in the Clients bank with the following details:

ARN FINANCIAL ADVISORS PRIVATE LIMITED

Bank Name: FAYSAL BANK, IBB BINORIA SITE, KARACHI

Account No: 3078 3010 0000 4797

IBAN: PK93 FAYS 3078 3010 0000 4797

ARN FINANCIAL ADVISORS PRIVATE LIMITED

Bank Name: BANK ALFALAH, IBG PIA BRANCH LAHORE

Account No: 5656 0050 0202 8467

IBAN: PK11 ALFH 5656 0050 0202 8467

7. Responsibilities of the Client

In order to avail Services of the Company under this Agreement the Client shall:

a) Provide all necessary information required by the Company for the risk profiling of the Client or required under the law. Client acknowledges that the Company cannot adequately provide the Services to the Client unless the Client shares the correct required

information.

b) Ensure at all times that the assets (securities or future contracts) are held in the name of the Client and the Company is not mentioned as an investor in any document. Client must provide the copy of its CDC Posted Report, Securities Ledger, and Cash

Book Report.

c) All the transactions in the portfolio of the Client are performed by the Client through an authorized broker and any handling of cash, securities or other assets is done by the Client or on his/her/its behalf, without involving the Company in any manner.

d) Be solely responsible to make any decision with respect to investments in the securities or future contracts, without being obligated to act upon the advice of the Company and shall not in any case hold the Company responsible for any loss of assets value or expected profits.

Understanding and managing these risks is crucial for investors to make informed decisions and build diversified portfolios that align with their investment objectives and risk tolerance.

8. Understanding of Risk Factors

8.1 The client understands and agrees that inventing in Stocks and future contracts comes with risks. These risks include unexpected changes in the market, finances, politics, and the economy, both globally and locally. These changes can cause the value of investments to go up and down, and they may happen without warning, even when the investment advice is being provided by fhe professionals.

8.2 The Client understands that the securities market is full of risk and is not suitable for an investor who has a low-risk profile. The Client confirms that he/she/it has carefully read the Risk Profiling Form (Annexure -A). Risk factors associated with Equity Investments comprise of but are not limited to the followings:

a) Market Risk: The value of Stocks can fluctuate due to changes in market conditions, such as economic downturns, interest rate movements, or geopolitical events. These fluctuations can affect the overall value of the investment portfolio.

b) Company-Specific Risk: Individual companies may face challenges such as poor management decisions, legal issues, or changes in industry trends that can adversely impact their Stock prices. Investing in a single company increases the risk of losses if that company underperforms.

c) Business risk: This risk concerns the viability of a business meaning its ability to earn more than it spends thereby making profits Liquidity Risk: Some Stocks may have lower trading volumes, making it difficult to buy or sell them at desired prices. This lack of

d) liquidity can result in delays or unfavorable pricing when trying to execute trades.

e) Volatility Risk: Equity markets can experience rapid price fluctuations over short periods, leading to higher volatility. While volatility can present opportunities for gains, it also increases the likelihood of losses if prices move against the investor's positions.

f) Sectoral Risk: Investing heavily in specific sectors or industries exposes the portfolio to sectoral risks. Factors such as changes in consumer preferences, regulatory developments, or technological advancements can impact certain sectors more than others.

g) Currency Risk: For investments in foreign Stocks, fluctuations in currency exchange rates can affect the returns when converting profits or dividends back into the investor's home currency. Currency movements can amplify gains ur losses from equity investments.

h) Political and Regulatory Risk: Changes in government policies, regulations, or geopolitical tensions can influence Stock prices and malke sentiment.Uncertaintysurroundingpoliticaleventsorregulatorydecisionsmayleadtoincreasedvolatilityandinvestor

i) Interest Rate Risk: Equity prices can be influenced by changes in interest rates, particularly for sectors sensitive to borrowing colts, such as financial services. Rising interest rates can increase borrowing expenses for companies and impact their profitability, affecting Stock prices

j) Credit Risk: Companies that issue Stocks may also have debt obligations. If a company's creditworthiness deteriorates or it defaults on its debt, it can negatively impact its Stock price and shareholder value,

k) Inflation Risk: Inflation erodes the purchasing power of money over time, potentially reducing the real returns on equity investments. Companies may Struggle to maintain profitability or pass on increased colts to consumers during periods of high inflation

Understanding and managing these risks is crucial for investors to make informed decisions and build diversified portfolios that align with their investment objectives and risk tolerance.

9. Confidentiality and Use of the Information

9.1 The Company shall keep all the information provided by the Client confidential, unless the information provided is already publicly available. The Company shall not share the any of the Client information to any third party unless required by law. The Company shall promptly inform the Client about any direction/request given to the Company about the Client information to enable him/her/it to prevent such disclosure by the Company. However, the Company shall not be liable for any disclosure mandated by law.

9.2 The Client understands that the information shared, and advice rendered by the Company for the personal use of the Client and may not be used for any other purpose including its commercial use.

9.3 The Company shall not be responsible for any loss to any third party arising out of breach of clause 9.1 above and he/she/it shall hold the Company harmless and indemnify against any monetary or other claims and shall also indemnify the Company for any reputational loss caused to the Company due to breach of the preceding clause.

10. Terms & Termination

10.1 This advisory services agreement shall commence from the date of execution and shall be valid for a period of 12 months unless terminated earlier in terms hereof.

10.2 The Parties may with mutual consent and upon terms and condition agreed may renew the arrangement between the Parties.

10.3 Either Party may terminate this Agreement by giving a 90 days’ prior written notice to the other party. The advisor holds the right to terminate this agreement subject to refund of agreement fee on pro rata basis. In case of termination by the client, no refund will be paid by the advisor.

10.4 The Agreement shall stand terminated in case the SECP does not renew the license issued to the Company or cancels or suspends the same.

10.5 Any advance amount paid by the Client shall not be refunded unless the Agreement is terminated in terms of clause 10.4 (refund shall be allowed on pro-rata basis) or the advisor decides to suspend the agreement in which case pro rata refund will have to be paid before termination.

10.6 Clients are not allowed to disclose or discuss their portfolios directly advised by the advisor. In case of violation, agreement will be terminated with no refund of fees.

11. Relationship with related parties

11.1 The Company declares that it shall provide all its Service in utmost good faith and professional diligence and without any conflicting interests.

11.2 The Company does not derive any direct or indirect benefit from the assets of the Client or have any conflict of interest. In case there are any conflicting interests that may prevent us from providing unbiased advice, the Company shall inform the Client.

11.3 The Company shall disclose to the Client any actual or potential conflicts of interest that may arise from any connection to or association with any issuer of securities, including any material information or facts that might compromise its objectivity or independence in the carrying on of securities or futures advisory services.

11.4 The Company shall be under a duty to disclose any interest or holding of any position in the securities, futures contracts or portfolio of securities that may be the subject matter of advice to the Client.

11.5 The Company shall ensure that its advisory activities are clearly segregated from all its other activities provided the Company is engaged in activities other than advisory services.

11.6 The Company must at all times take reasonable Steps to ensure that neither the Company nor any of its employees, where applicable, offers or gives, or solicits or accepts, any inducement that is likely to conflict with any duties owed to the Client.

11.7 The Company shall take all the necessary Steps to ensure that the Client's interests are kept at the forefront and protected.

11.8 The Company shall take from all necessary consents and permissions form the Client prior to taking any actions in relation to the securities or investment products advised by the Company.

11.9 The Company shall not seek any power of attorney or authorisations from the Client for implementation of our investment advice.

12. Selection of Securities Broker

The selection of Securities Broker is not in the scope of this Agreement. The Company shall not advise the Client for the selection of Securities Broker. Client shall be solely responsible for the selection of Securities Broker of his/her/its own choice. The brokerage commission, taxes and other expenses related to the sale and purchase transactions of securities and custody charges of securities shall be fully borne by the Client and shall not be subject of this Agreement in any manner whatsoever.

13. Death or Disability of Client

13.1 In case of death or other disability leaving the Client incapable of exercising his/her/its rights and fulfilling obligation under this Agreement, the Company shall contact the person(s) nominated in advance by the Client and proceed in accordance with law.

13.2 The Company shall not be obligated to follow instructions from any person other than Client or any person duly authorized and intimated to the Company.

14. Grievance Redressal

In case of any complaint or grievance related to Service under this Agreement, the Client may write to the Company at complaints@arnfinancials.com. The Company shall endeavour to provide response on prompt basis but no later than 10 working days.

15. Assignment

The rights of the Parties under this Agreement are private to the parties and may not be assigned by either party without consent of the other party. However, in case of any change in ownership, merger, acquisition or amalgamation of the Company the relationship created under this Agreement shall continue and the obligations of the Company shall transfer to its successor(s).

16. Severability

If any provisions of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid or enforceable, then such provision will be deemed to be written, construed, and enforced as so limited.

17. Ownership of Intellectual Property

17.1 All intellectual property and related material, including any copyrights, related rights, trade secrets, moral rights, goodwill, relevant regisrations or applications for registration, and rights in any patent, trademark, trade dress, designs and trade name (the "Intellectual Property") that is developed, produced or shared by the Company, will be the sole property of the Company.

17.2 The Client may not use the Intellectual Property for any purpose other than that contracted for in this Agreement except with the written consent of the Company.

18. Modification of the Agreement
Any amendment or modification of this Agreement or additional obligation assumed by either Party in connection with this Agreement will only be binding if evidenced in writing signed by each Party or an authorized representative of each Party.

19. Force Majeure

The Company shall not be liable for delays or errors occurring in providing the Services due to circumstances beyond our control, including but not limited to acts of civil or military authority, national emergencies, work Stoppages, fire, flood, catastrophe, acts of Allah (God), insurrection, war, riot or failure of communication or power supply. In the event of equipment breakdowns beyond control, the Company shall take reasonable Steps to minimise service interruptions, but it shall have no liability with respect thereto.

20. Waiver

The waiver by either Party of a breach, default, delay or omission of any of the provisions of this Agreement by the other Party will not

be construed as a waiver of any subsequent breach of the same or other provisions

21. Governing Law

This Agreement shall be governed by and construed in accordance with the Laws of Islamic Republic of Pakistan and the courts at Lahore shall have exclusive jurisdiction in any matter related this Agreement.

22. Contact details for Notices

Name: Abdul Rehman Najam
Email: abdulnajam5@gmail.com
+923030027875

SELECTION OF SERVICE CATEGORY

The Client agrees and accept the above referred terms and conditions. Client will make payments to A R N Financial Advisors as per their subscription as or when billed.

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