Financial Management Agreement Template for United Arab Emirates

The Financial Management Agreement serves as the primary contractual framework for financial management services in the UAE, establishing the relationship between licensed financial managers and their clients. This document is essential when engaging professional financial management services, whether for individual wealth management, corporate treasury services, or institutional asset management. It must comply with UAE Federal Law No. 14 of 2018 (UAE Central Bank Law), SCA regulations, and other relevant federal legislation. The agreement covers crucial aspects including service scope, investment mandates, fee structures, reporting requirements, and risk management protocols, while incorporating necessary provisions for UAE regulatory compliance, including anti-money laundering requirements and consumer protection measures.

1. Parties: Identification of the Financial Manager and the Client, including licensing and registration details as required by UAE regulations

2. Background: Context of the agreement and brief description of the services to be provided

3. Definitions: Key terms used throughout the agreement, including regulatory and financial terminology

4. Appointment and Scope of Services: Formal appointment of the Financial Manager and detailed description of services to be provided

5. Regulatory Compliance: Compliance with UAE Central Bank, SCA, and other applicable regulatory requirements

6. Authority and Client Instructions: Extent of Financial Manager's authority and procedures for client instructions

7. Fees and Expenses: Detailed fee structure, payment terms, and reimbursable expenses

8. Reporting and Communications: Regular reporting requirements, frequency, and communication protocols

9. Risk Disclosures: Mandatory risk warnings and disclosures as per UAE regulations

10. Confidentiality: Confidentiality obligations and permitted disclosures

11. Anti-Money Laundering Compliance: AML/CFT obligations and procedures

12. Representations and Warranties: Standard representations and warranties from both parties

13. Liability and Indemnification: Limitation of liability and mutual indemnification provisions

14. Term and Termination: Duration of agreement and termination provisions

15. Governing Law and Jurisdiction: UAE law as governing law and jurisdiction for disputes