Investment Advisory Agreement Template for United Arab Emirates

The Investment Advisory Agreement is a crucial document used in the UAE financial services sector to formalize the relationship between licensed investment advisors and their clients. It is required under UAE Securities and Commodities Authority (SCA) regulations when providing professional investment advice to clients. The agreement must comply with SCA Board Decision No. (13/R.M) of 2021 and related regulations governing financial advisory services. It details the scope of services, fee structures, risk disclosures, and regulatory obligations, while protecting both parties' interests. This document is essential for investment firms operating in the UAE and must be tailored to account for specific client classifications (retail/professional) and service types being offered.

1. Parties: Identification of the investment advisor and the client, including licensing details of the advisor

2. Background: Context of the agreement and confirmation of advisor's regulatory status

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

4. Appointment and Scope of Services: Detailed description of investment advisory services to be provided and any limitations

5. Regulatory Compliance: Compliance with UAE laws and SCA regulations, including client classification

6. Client Representations and Warranties: Client's confirmations regarding their status, understanding of risks, and authority

7. Advisor Representations and Warranties: Advisor's confirmations regarding licensing, expertise, and regulatory compliance

8. Fees and Payment Terms: Detailed fee structure, calculation methods, and payment procedures

9. Confidentiality and Data Protection: Obligations regarding client information and compliance with data protection laws

10. Risk Disclosures: Mandatory risk warnings and disclaimers

11. Conflicts of Interest: Disclosure and management of potential conflicts

12. Liability and Indemnification: Extent of advisor's liability and mutual indemnification provisions

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

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

15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment