Sample Request for Proposal for Investment Advisory Services

REQUEST FOR PROPOSAL (RFP): INVESTMENT ADVISORY SERVICES

Document Control

• Effective Date: [Date]
• Version: 1.0
• Jurisdiction: [State/Province/Country]
• Scope: Corporate Investment Advisory and Fiduciary Oversight

1. OFFICIAL NOTICE AND DISCLAIMER

This Request for Proposal (RFP) is provided for informational purposes only and does not constitute a binding offer. Receipt of this document does not create a fiduciary or agency relationship between [Company Name] ("Company") and any prospective respondent ("Advisor"). The Company reserves the right to reject any or all proposals, waive formalities, and negotiate with any respondent at its sole discretion. All proprietary data submitted in response shall be treated as confidential, subject to applicable state and federal disclosure laws.

2. PARTIES & DEFINITIONS

• Company: [Full Legal Name of Company], with a principal place of business at [Full Address].
• Advisor: The registered Investment Advisor (RIA) submitting a proposal to provide services to the Company.
• Investment Policy Statement (IPS): The governing document outlining the risk tolerance, liquidity requirements, and asset allocation parameters of [Company Name].
• Services: Professional financial advisory, portfolio management, and reporting services as defined in Section 4.

3. RFP OVERVIEW

The Company is seeking an SEC-registered investment firm to manage corporate cash reserves/pension assets totaling approximately [Amount] USD. The objective is to achieve [Target Return/Objective, e.g., capital preservation, liquidity optimization] while maintaining compliance with [Company Name]’s established Investment Policy Statement.

4. OPERATIVE CLAUSES & TERMS

1. Scope of Services: The Advisor shall provide: (a) Portfolio Construction; (b) Asset Allocation optimization; (c) Quarterly performance reporting; (d) Regulatory compliance monitoring; and (e) Fiduciary oversight regarding all assets under management (AUM).
2. Fiduciary Standard: The Advisor shall act as a fiduciary at all times, placing the Company’s financial interests above all other interests.
3. Fee Structure: All proposals must detail the fee schedule, including management fees (as a percentage of AUM), performance-based incentives (if any), and administrative costs. Total cost of ownership must be transparently disclosed.
4. Regulatory Standing: The Advisor must provide a current Form ADV (Parts 1 and 2A). Any disciplinary history, SEC sanctions, or ongoing investigations must be fully disclosed.
5. Reporting Requirements: Advisor shall provide digital and physical reports on a [Monthly/Quarterly] basis, detailing performance vs. benchmarks, attribution analysis, and risk metrics.
6. Termination: The Company reserves the right to terminate the subsequent service agreement for cause or convenience upon [Number] days’ written notice.
7. Compliance with IPS: Advisor must certify in writing that they have reviewed the attached Investment Policy Statement and that their investment strategy is aligned with said document.

5. PROPOSAL SUBMISSION REQUIREMENTS

Respondents must provide:

• Executive Summary: Overview of the firm and its investment philosophy.
• Personnel: Biographies of the lead advisors assigned to the account.
• Performance: Track record of similar mandates (last 3–5 years).
• Compliance Disclosure: A signed affidavit of no material conflicts of interest.
• Pricing: A clear, itemized fee proposal.

6. EXECUTION & SIGNATURE BLOCK

FOR THE COMPANY: Authorized Representative: __________________________ Printed Name: [Name] Title: [Title] Date: [Date]

FOR THE ADVISOR (Acknowledgement of Receipt): Authorized Representative: __________________________ Printed Name: [Name] Title: [Title] Date: [Date]

7. STEP-BY-STEP EXECUTION GUIDE

1. Internal Review: Legal Counsel must finalize the Investment Policy Statement (IPS) before circulating this RFP to ensure compliance with Board-approved risk parameters.
2. Distribution: Issue the RFP via secure portal. Require a signed Non-Disclosure Agreement (NDA) from all prospective Advisors before sharing granular financial data.
3. Q&A Protocol: Establish a "Quiet Period." All questions from prospective Advisors must be submitted in writing. Responses must be distributed to all invited candidates simultaneously to ensure competitive integrity.
4. Evaluation: Score all responses against a weighted matrix (Performance 30%, Fee Structure 30%, Compliance/Reporting 20%, Personnel/Reputation 20%).
5. Due Diligence: Conduct an "on-site" (or virtual) visit with the short-listed finalists. Verify the existence of the assets under management reported in the RFP response via a background check.
6. Formal Contracting: Upon selection, draft an Investment Advisory Agreement (IAA). The IAA must incorporate this RFP and the Advisor’s Proposal by reference.
7. Filing: Maintain the original signed RFP, the successful Proposal, and all evaluation scoring sheets in the permanent corporate governance records for at least [Number, e.g., 7] years for regulatory audit purposes.