If you`re looking to start investing or already have investments, you might come across the term “fidelity client agreement.” A fidelity client agreement is a legal contract between you and Fidelity, a financial services company. This agreement outlines the terms and conditions of the services Fidelity provides and your obligations as a client.

The fidelity client agreement is an important document to read and understand before opening an account with Fidelity. It outlines details such as the fees associated with the account, how Fidelity will manage your investments, and the risks involved with investing. The document also spells out the roles and responsibilities of both Fidelity and the client.

One of the key elements of the fidelity client agreement is the “know your customer” (KYC) provision. As part of this provision, Fidelity is required to obtain certain information about you, including your financial situation, investment objectives, and risk tolerance. This information is used to determine which investments are suitable for you and to tailor Fidelity`s services to your needs.

The agreement also includes a section on fees and expenses. Fidelity charges fees for their services, including account maintenance, advisory fees, and commissions on trades. The fees charged will depend on the specific services you use and the investments you make. The client agreement outlines these fees and informs you of any additional expenses you may incur, such as taxes and transfer fees.

Another important provision of the fidelity client agreement is the section on risk disclosures. Investing always carries some level of risk, and the agreement outlines the various types of risks associated with investing, including market risk, interest rate risk, and credit risk. The agreement also explains how Fidelity manages risk and how you should approach investment decisions to minimize risk.

Finally, the fidelity client agreement outlines the rights and responsibilities of both parties. As a client, you have the right to access your account information and to receive regular statements detailing your investments. You are also responsible for providing accurate and up-to-date information to Fidelity and for informing them of any changes to your financial situation or investment objectives.

In conclusion, the fidelity client agreement is an important document that outlines the terms and conditions of your relationship with Fidelity. By reading and understanding this agreement, you can make informed investment decisions and ensure that you and Fidelity are on the same page when it comes to managing your investments.