Asset Management Agreement Template for United Arab Emirates

The Asset Management Agreement is a crucial document used in the UAE financial services sector to establish a formal investment management relationship between a licensed asset manager and their clients. It serves as the primary contractual framework for delegating investment authority and defining the scope of services, while ensuring compliance with UAE regulatory requirements, particularly those imposed by the Securities and Commodities Authority (SCA) and the UAE Central Bank. This agreement is essential when a client wishes to engage a professional asset manager to manage their investment portfolio, whether for individual wealth management, institutional asset management, or family office services. The document covers key aspects including investment strategy, risk parameters, fees, reporting requirements, and regulatory obligations, with specific provisions addressing UAE market characteristics and regulatory framework.

1. Parties: Identification of the Asset Manager and the Client, including regulatory status and contact details

2. Background: Context of the agreement and confirmation of the Asset Manager's regulatory authorizations

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Appointment and Scope: Formal appointment of the Asset Manager and outline of services to be provided

5. Regulatory Status and Compliance: Confirmation of regulatory compliance and applicable UAE regulatory framework

6. Investment Objectives and Strategy: Agreed investment objectives, strategy, and any restrictions

7. Powers and Duties of the Asset Manager: Detailed responsibilities and authority of the Asset Manager

8. Client's Responsibilities: Obligations of the Client including information provision and compliance requirements

9. Fees and Expenses: Management fees, performance fees, expenses, and payment terms

10. Representations and Warranties: Standard and regulatory-specific representations from both parties

11. Risk Disclosures: Mandatory risk warnings and disclosures under UAE regulations

12. Reporting and Valuations: Reporting obligations, frequency, and valuation methodologies

13. Confidentiality: Confidentiality obligations and permitted disclosures

14. Conflicts of Interest: Management of potential conflicts and disclosure requirements

15. Liability and Indemnification: Extent of Asset Manager's liability and mutual indemnifications

16. Term and Termination: Duration, termination rights, and consequences of termination

17. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction provisions