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Fund Distribution Agreement
"I need a Fund Distribution Agreement for our Belgian asset management company to appoint a major retail bank as distributor of our UCITS funds, with distribution rights limited to Belgium and Luxembourg, planned to commence from March 2025."
1. Parties: Identification of the Fund Company/Management Company and the Distributor, including regulatory status and authorizations
2. Background: Context of the agreement, brief description of the funds to be distributed, and the distribution arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including regulatory terms
4. Appointment and Scope: Formal appointment of distributor and scope of distribution rights (territories, client types, fund ranges)
5. Regulatory Compliance: Obligations regarding MiFID II, UCITS, AML, and other regulatory requirements
6. Distribution Services: Detailed description of authorized distribution activities and service levels
7. Subscription and Redemption Procedures: Process for handling investor transactions and related documentation
8. Fees and Commissions: Fee structure, payment terms, and commission arrangements
9. Representations and Warranties: Standard and regulatory-specific representations from both parties
10. Compliance and Reporting: Ongoing compliance obligations, reporting requirements, and record-keeping
11. Confidentiality and Data Protection: Confidentiality obligations and GDPR compliance requirements
12. Term and Termination: Duration of agreement and termination provisions
13. Liability and Indemnification: Allocation of liability and indemnification obligations
14. General Provisions: Standard boilerplate clauses including notices, amendments, governing law
1. White Labeling: Include when distributor will rebrand or white label the funds
2. Online Distribution: Include for digital/online distribution channels, covering website and platform requirements
3. Sub-Distribution Rights: Include if distributor is permitted to appoint sub-distributors
4. Marketing Arrangements: Include detailed marketing provisions if distributor will create marketing materials
5. Service Level Agreement: Include when specific performance metrics and service levels need to be defined
6. Local Market Requirements: Include specific provisions for particular target markets if multi-jurisdiction
7. Rebate Arrangements: Include if there are fee rebate arrangements with specific clients or channels
1. Schedule 1 - Fund List: List of funds approved for distribution with their key details
2. Schedule 2 - Fee Schedule: Detailed fee structure, commission rates, and calculation methods
3. Schedule 3 - Territory List: Approved distribution territories and any territory-specific requirements
4. Schedule 4 - Operational Procedures: Detailed procedures for subscriptions, redemptions, and reporting
5. Schedule 5 - Compliance Requirements: Specific compliance procedures and requirements including AML procedures
6. Appendix A - Required Regulatory Disclosures: Standard regulatory disclosures and warnings
7. Appendix B - Reporting Templates: Templates for required periodic reporting
8. Appendix C - Contact Details: Key contact information for both parties for various functions
Authors
Financial Services
Banking
Investment Management
Asset Management
Wealth Management
Insurance
FinTech
Professional Services
Investment Advisory
Legal
Compliance
Distribution
Sales
Operations
Product Management
Risk Management
Commercial
Regulatory Affairs
Business Development
Fund Administration
Investment Management
Client Services
Head of Distribution
Legal Counsel
Compliance Officer
Fund Manager
Distribution Director
Relationship Manager
Chief Operating Officer
Head of Sales
Regulatory Affairs Manager
Business Development Director
Product Manager
Operations Manager
Risk Manager
Head of Legal
Commercial Director
Investment Director
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