Account Management Agreement Template for Hong Kong

The Account Management Agreement serves as the primary contractual framework for establishing and governing the professional relationship between account managers and their clients in Hong Kong. This document is essential for financial institutions, asset managers, and investment advisors operating under Hong Kong's regulatory regime, particularly those licensed by the Securities and Futures Commission (SFC). It is typically used when a client engages a professional manager to oversee their investment accounts, handle trading activities, or manage their financial assets. The agreement must comply with Hong Kong's regulatory requirements, including the Securities and Futures Ordinance, while addressing crucial aspects such as fiduciary duties, risk disclosures, fee structures, operational procedures, and data protection obligations. It's particularly important for ensuring clear delineation of responsibilities and establishing proper risk management frameworks in the context of Hong Kong's sophisticated financial markets.

1. Parties: Identification of the account manager and the client, including their full legal names, registration details, and addresses

2. Background: Context of the agreement, including the account manager's licensing status and the client's intention to engage their services

3. Definitions: Key terms used throughout the agreement, including regulatory terms, service-related definitions, and technical terminology

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

5. Authority and Instructions: Extent of account manager's authority and procedures for giving/receiving instructions

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

7. Client's Obligations: Client's responsibilities, including providing accurate information and maintaining minimum balances

8. Account Manager's Obligations: Professional obligations, standard of care, reporting requirements, and regulatory compliance

9. Risk Disclosures: Mandatory risk warnings and disclaimers required under Hong Kong regulations

10. Confidentiality: Obligations regarding confidential information and personal data protection

11. Compliance with Laws: Obligations to comply with relevant Hong Kong laws, including AML requirements

12. Representations and Warranties: Standard representations from both parties regarding capacity, authority, and compliance

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

14. Termination: Circumstances and procedures for termination of the agreement

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

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