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Fund Distribution Agreement Template for Belgium

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Key Requirements PROMPT example:

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."

Document background
A Fund Distribution Agreement is essential when an investment fund manager or fund company wants to distribute their funds through third-party channels in Belgium. This document is crucial for establishing the legal and operational framework between fund providers and distributors, ensuring compliance with Belgian financial regulations and EU directives including MiFID II, UCITS, and AIFMD. The agreement covers critical aspects such as distribution rights, regulatory compliance obligations, fee structures, reporting requirements, and operational procedures. It's particularly important in the Belgian market where distribution often occurs through banks, financial institutions, and investment platforms, all of which require robust contractual frameworks compliant with local regulatory requirements. The document should be used whenever a new distribution relationship is established or an existing one needs to be updated to reflect regulatory changes or new commercial terms.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

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

Relevant legal definitions























































Clauses









































Relevant Industries

Financial Services

Banking

Investment Management

Asset Management

Wealth Management

Insurance

FinTech

Professional Services

Investment Advisory

Relevant Teams

Legal

Compliance

Distribution

Sales

Operations

Product Management

Risk Management

Commercial

Regulatory Affairs

Business Development

Fund Administration

Investment Management

Client Services

Relevant Roles

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

Industries









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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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