Alternative Data Investment Strategy Authorization Form

Alternative Data Investment Strategy Authorization Form

In today's data-driven investment landscape, alternative data sources have become essential tools for generating alpha and gaining competitive advantages. From satellite imagery tracking retail foot traffic to anonymized credit card transaction patterns revealing consumer spending trends, these non-traditional data sources provide institutional investors, hedge funds, and asset managers with unique market insights that traditional financial statements simply cannot offer.

This Alternative Data Investment Strategy Authorization Form is designed for investment firms, asset managers, portfolio managers, and institutional investors who need to formally document client consent and understanding when incorporating alternative data sources into investment decision-making processes. Whether you're a quantitative hedge fund leveraging satellite imagery to predict quarterly earnings, a private equity firm using web scraping to assess market share, or a wealth management firm exploring ESG data from unconventional sources, this template helps you maintain compliance and transparency with your clients.

Why Alternative Data Matters in Modern Investment Management

Alternative data refers to information sourced from non-traditional channels—satellite images, geolocation data, social media sentiment, web traffic analytics, credit card transactions, supply chain signals, and more. According to recent industry reports, the alternative data market is projected to exceed $10 billion annually as institutional investors increasingly recognize its value in:

• Generating uncorrelated alpha by identifying trends before they appear in traditional financial reports
• Improving due diligence through real-time monitoring of company operations and consumer behavior
• Risk management by detecting early warning signals in supply chains, foot traffic, or sentiment shifts
• ESG and sustainability analysis using non-traditional environmental and social impact data

How This Form Streamlines Alternative Data Compliance

This comprehensive authorization form captures all the essential information needed to document client understanding and consent when incorporating alternative data into investment strategies. The form covers:

Client Information & Investment Profile: Collects accredited investor status, investment objectives, risk tolerance, and portfolio details to ensure suitability of alternative data strategies.

Alternative Data Source Authorization: Presents clear explanations of various alternative data categories—satellite imagery, transactional data, web and social media analytics, geolocation data, and other emerging sources—allowing clients to understand and authorize specific data types.

Use Case and Strategy Details: Documents how alternative data will be applied to the client's portfolio, whether for sector analysis, individual security selection, risk monitoring, or broader market timing decisions.

Risk Disclosure and Understanding: Ensures clients acknowledge the unique risks associated with alternative data, including data quality concerns, regulatory uncertainty, privacy considerations, and the potential for overfitting or false signals.

Compliance and Regulatory Acknowledgments: Covers important legal and regulatory considerations, including data privacy laws (GDPR, CCPA), securities regulations, and the firm's policies around data ethics and responsible usage.

Fee Structure and Transparency: Clearly outlines any additional costs associated with alternative data subscriptions, analytics platforms, or performance fees tied to alternative data strategies.

Perfect for Investment Professionals and Asset Managers

This form template is ideal for:

• Hedge funds and quantitative investment firms using satellite imagery, credit card data, and web scraping for alpha generation
• Private equity and venture capital firms conducting due diligence with alternative data sources
• Registered investment advisors (RIAs) and wealth managers offering sophisticated strategies to high-net-worth and institutional clients
• Asset management firms incorporating ESG data, sentiment analysis, or supply chain intelligence
• Family offices exploring cutting-edge investment approaches for principals and beneficiaries
• Institutional consultants evaluating and recommending alternative data vendors and strategies

Seamless Integration with Your Investment Operations

Built with Paperform, this authorization form delivers the professional experience your clients expect while integrating smoothly into your operational workflow. The clean, document-style layout presents complex information clearly, and conditional logic shows relevant sections based on client responses—for instance, displaying specific data vendor disclosures only when those sources are selected.

Once submitted, connect this form to your existing systems using Stepper (stepper.io) to automatically trigger your compliance workflow: send signed agreements for eSignature via Papersign (papersign.com), log authorizations in your CRM, notify your compliance team, update client records in your portfolio management system, and generate audit trails for regulatory review. This automation ensures that every alternative data authorization is properly documented and tracked without manual data entry.

Security and Compliance Built In

Investment management requires the highest standards of data security and regulatory compliance. This form is built on Paperform's SOC 2 Type II certified infrastructure, ensuring that sensitive client information—from accredited investor status to investment preferences—is protected with enterprise-grade security. Role-based permissions let you control which team members can access submissions, while audit logs provide complete visibility into form interactions for compliance review.

The form can be customized to include your firm's specific data vendors, regulatory disclosures, and branding, maintaining consistency with your existing client documentation and compliance procedures.

Alternative Data: The Future of Investment Intelligence

As traditional data sources become commoditized, alternative data represents the new frontier of investment research. However, with this opportunity comes responsibility—ensuring clients fully understand how their capital will be managed, what data sources will inform decisions, and what risks these approaches entail.

This Alternative Data Investment Strategy Authorization Form gives you a professional, compliant, and efficient way to onboard clients into the future of investing. By clearly documenting authorizations, you protect your firm, demonstrate transparency to regulators, and build trust with clients who are partnering with you to access these sophisticated investment approaches.

Start using this template today and bring structure, compliance, and professionalism to your alternative data investment strategies.