Investment Management Contract Template for Switzerland

The Investment Management Contract is essential for establishing professional investment management relationships under Swiss law. It is used when a client (individual or institutional) engages a licensed investment manager to manage their investment portfolio on a discretionary basis. The contract must comply with Swiss financial regulations, particularly FinSA and FinIA, which impose specific requirements regarding client classification, risk disclosure, and service documentation. The agreement covers crucial aspects such as investment strategy, permitted investments, risk management, fee structures, reporting obligations, and termination rights. It's particularly important in Switzerland's sophisticated financial services market, where high standards of professionalism and client protection are required. The document serves as the primary reference point for the ongoing relationship between the investment manager and client, establishing clear parameters for portfolio management while ensuring regulatory compliance.

1. Parties: Identification of the investment manager and the client, including regulatory status and contact details

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Authority: Formal appointment of the investment manager and scope of discretionary authority

5. Client Classification: Classification of the client according to FinSA categories (private, professional, or institutional)

6. Investment Guidelines and Restrictions: Agreed investment strategy, permissible investments, and any restrictions

7. Services and Obligations: Detailed description of services, including portfolio management, reporting, and risk management

8. Fees and Expenses: Management fees, performance fees, calculation methods, and other charges

9. Representations and Warranties: Statements of fact and assurances from both parties

10. Risk Disclosures: Mandatory risk warnings and acknowledgments as required by FinSA

11. Compliance and AML Obligations: Anti-money laundering and regulatory compliance requirements

12. Reporting and Valuations: Frequency and content of portfolio reports and valuation methods

13. Liability and Indemnification: Extent of manager's liability and indemnification provisions

14. Confidentiality and Data Protection: Protection of confidential information and personal data handling

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

16. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction