Investment advisory relationships are not assignable. Section 205(a)(2) of the Advisers Act provides that investment advisers can’t enter into an advisory contract that:
“(2) fails to provide, in substance, that no assignment of such contract shall be made by the investment adviser without the consent of the other party to the contract”.
So a registered investment adviser should definitely not put this in its advisory contract:
“[Adviser retains the] right to assign or otherwise transfer this Agreement or its rights or obligations set forth hereunder without notice and without Client’s consent.”
An advisory firm got slapped with an enforcement action when an examination found that provision in its advisory contracts.
Sources:
- In the Matter of FamilyWealth Advisers, LLC and FamilyWealth Asset Management, LLC January 20, 2026