Ppm Subscription Agreement Template for Switzerland

The PPM Subscription Agreement is a fundamental document used in the Swiss financial services industry to formalize the relationship between a portfolio manager and a client seeking professional investment management services. This agreement is essential when a client wishes to delegate investment decisions to a professional manager under Swiss law. The document must comply with strict Swiss regulatory requirements, particularly the Federal Act on Financial Services (FinSA) and the Federal Act on Financial Institutions (FinIA). The agreement covers crucial aspects such as investment strategy, risk parameters, fee structures, reporting obligations, and client classifications. It's particularly important to note that under Swiss law, the PPM Subscription Agreement must include specific mandatory disclosures and risk warnings, making it a comprehensive document that protects both the service provider and the client while ensuring regulatory compliance.

1. Parties: Identification of the portfolio manager and the client, including full legal names and addresses

2. Background: Context of the agreement and brief description of the portfolio management service being offered

3. Definitions: Key terms used throughout the agreement, including technical and legal terminology

4. Scope of Services: Detailed description of the portfolio management services to be provided

5. Investment Strategy and Guidelines: Overview of the agreed investment strategy and any specific investment restrictions or guidelines

6. Authority and Client Instructions: Extent of discretionary authority granted to the manager and processes for client instructions

7. Fees and Expenses: Comprehensive fee structure, including management fees, performance fees, and other charges

8. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority to enter into the agreement

9. Risk Disclosures: Mandatory risk warnings and acknowledgments as required by Swiss financial regulations

10. Reporting and Valuations: Frequency and content of portfolio reports and valuation methodology

11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

12. Confidentiality: Obligations regarding the treatment of confidential information

13. Data Protection: Compliance with Swiss data protection laws and handling of personal data

14. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes