The Advisory Engagement Letter is a crucial document used in the United Arab Emirates to formalize professional advisory relationships between service providers and their clients. This document is essential when establishing any professional advisory service arrangement, whether for management consulting, financial advisory, strategic planning, or other professional services. It must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and Federal Law No. 18 of 1993 (Commercial Transactions Law), among other relevant regulations. The letter typically includes detailed scope of services, fee arrangements, delivery timelines, and terms of engagement, while incorporating necessary provisions for UAE regulatory compliance. It serves as both a formal agreement and a project initiation document, protecting the interests of all parties involved while ensuring clarity in the professional relationship.
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1. Letter Header: Professional letterhead, date, reference number, and recipient's details
2. Salutation: Formal greeting to the appropriate contact person
3. Introduction: Opening paragraph confirming the engagement and thanking the client for selecting the firm
4. Scope of Services: Detailed description of the advisory services to be provided, including specific deliverables and any limitations
5. Team Structure: Key personnel who will be involved in providing the services and their roles
6. Fees and Payment Terms: Clear outline of fee structure, payment schedule, and any additional costs
7. Timeline: Expected duration of the engagement and key milestones
8. Confidentiality: Commitments regarding the protection of sensitive information
9. Professional Standards: Statement of commitment to professional standards and quality of service
10. Termination Provisions: Conditions and process for ending the engagement
11. Acceptance and Execution: Instructions for acknowledging and accepting the engagement terms
1. Regulatory Compliance: Specific section for regulated industries requiring additional compliance statements or disclosures
2. Conflict Resolution: Detailed dispute resolution procedures, recommended for high-value or complex engagements
3. Insurance Coverage: Details of professional indemnity insurance, particularly relevant for high-risk advisory services
4. Sub-contractor Provisions: Required when external specialists or sub-contractors may be involved in service delivery
5. International Considerations: Necessary for cross-border advisory services involving multiple jurisdictions
6. Force Majeure: Detailed force majeure provisions, recommended for long-term engagements
7. Data Protection: Specific data handling and protection commitments, essential when dealing with personal or sensitive data
1. Schedule A - Detailed Scope of Work: Comprehensive breakdown of services, methodologies, and deliverables
2. Schedule B - Fee Schedule: Detailed breakdown of fees, rates, and payment milestones
3. Schedule C - Team Profiles: Detailed biographies and qualifications of key team members
4. Schedule D - Project Timeline: Detailed project plan with specific milestones and deadlines
5. Appendix 1 - Standard Terms and Conditions: Firm's standard terms and conditions applicable to all engagements
6. Appendix 2 - Required Client Information: List of information and documents required from the client
7. Appendix 3 - Compliance Requirements: Specific regulatory or compliance requirements applicable to the engagement
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