Mutual Fund Agreement Template for Singapore

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Key Requirements PROMPT example:

Mutual Fund Agreement

"Need a Mutual Fund Agreement for a new Singapore-based equity fund focusing on Southeast Asian markets, with specific provisions for quarterly distributions and multiple unit classes, to be launched in March 2025."

Document background
The Mutual Fund Agreement serves as the foundational document for establishing and operating a collective investment scheme in Singapore. It is essential when setting up a new mutual fund or restructuring an existing one, ensuring compliance with Singapore's robust regulatory framework. The agreement encompasses crucial elements such as investment policies, risk management procedures, and operational guidelines as required by the MAS. This document is particularly important in Singapore's highly regulated financial sector, where strict compliance with the Securities and Futures Act and related regulations is mandatory for all fund operations.
Suggested Sections

1. Parties: Identification of the fund manager, trustee, and other key parties

2. Background: Context of the fund establishment and purpose

3. Definitions: Key terms used throughout the agreement

4. Fund Structure: Details of fund organization, classes of units, and investment objectives

5. Investment Powers and Restrictions: Permitted investments and limitations as per MAS guidelines

6. Management and Administration: Roles and responsibilities of fund manager and other parties

7. Units and Unitholders: Rights and obligations of unitholders

8. Fees and Expenses: All charges, fees, and expense allocation

9. Valuation and Pricing: Methods for calculating NAV and unit prices

Optional Sections

1. Distribution Policy: Details of dividend/distribution arrangements when fund offers income distribution

2. Tax Provisions: Specific tax treatments and obligations for funds with special tax considerations

3. Foreign Investment Provisions: Special provisions for funds that invest internationally

Suggested Schedules

1. Investment Guidelines: Detailed investment policies and restrictions

2. Fee Schedule: Detailed breakdown of all fees and charges

3. Subscription/Redemption Procedures: Detailed procedures for unit transactions

4. Risk Disclosure Statement: Comprehensive list of investment risks

5. Valuation Methods: Detailed procedures for asset valuation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

Securities and Futures Act (SFA): Primary legislation governing mutual funds in Singapore that regulates collective investment schemes, sets licensing requirements for fund managers, and defines disclosure requirements

Monetary Authority of Singapore (MAS) Act: Establishes the regulatory framework for financial institutions and defines the supervisory authority for the financial sector in Singapore

Code on Collective Investment Schemes: Regulatory code that details operational requirements, investment restrictions, and disclosure requirements for fund prospectuses

MAS Guidelines on Fund Management: Collection of guidelines covering licensing, registration, conduct of business, risk management practices, and outsourcing requirements for fund management companies

Companies Act: Legislation governing corporate governance requirements and directors' duties for companies operating in Singapore

Trust Law: Legal framework governing the structure of unit trusts, which is the typical legal form for mutual funds in Singapore

AML/CFT Requirements: Anti-Money Laundering and Counter-Terrorism Financing requirements as specified in MAS Notice SFA04-N02

Personal Data Protection Act: Legislation governing the collection, use, and disclosure of personal data, relevant for handling investor information

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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